Learn about FHA and VA New Construction Loans
March 4, 2026
FHA, VA, and USDA: One-Time Close Loans
Want More Information About One-Time Close Loans?
We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,500,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
FHA and VA new construction loans, also known as One-Time Close Construction loans, are intended to help those who want to own and occupy a home to build from the ground up on their own land. The FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
The VA down payment can be as low as $0 for eligible veterans available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. When you eventually apply for a new construction loan or any other type of home loan, you will have certain paperwork and documentation that must be submitted to the lender as part of the application process.
The participating lender will need a range of financial information including your bank account numbers, tax information, and even a list of residences and employers from the last two years. This information is used to determine the borrower's credit, income, and employment with the most up-to-date information available.
Tax Information Needed
Mortgage loan applicants (for construction loans or otherwise) are required to furnish copies of their W2's from the last two years.
W2's document the borrower's net and gross income plus applicable taxes and withholding, and serves as a record of actual wages earned (which verifies what the borrower listed as income on the new construction loan application.)
Both FHA and VA requires the lender to obtain complete individual federal income tax returns for the most recent two years, including all schedules and self-employed borrowers will have additional requirements including two years of tax returns as well as the most recent quarter to date numbers.
Watch Out for Lender "Overlays"
FHA credit score requirements state FICO scores 500 or above typically qualify under FHA guidelines. FICO score ranges between 500 and 579 technically qualify for FHA home loans at a higher down payment (10%).
FHA loan standards say FICO scores at 580 or higher qualify for the lowest down payment under FHA rules. However, lender standards also apply, so be sure to ask your loan officer. Construction loans may feature different lender standards than others.
The VA Lenders Handbook does not set a minimum credit score for VA loans. Instead, the VA focuses on the borrower's overall creditworthiness, allowing individual lenders to set their own minimum requirements, which typically range from 580 to 620.
While these guidelines are clear, lenders can impose “Overlays” which are additional requirements which are determined by each lender. At this time, all known One-Time Close construction lenders familiar with our company require a minimum middle credit score of 620 for each borrower. The dilemma is that lower credit pricing for this loan will create a much higher interest rate from the lender – which is what you want to avoid.
See if you qualify for an FHA or VA One-Time Close construction loan.
The VA down payment can be as low as $0 for eligible veterans available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. When you eventually apply for a new construction loan or any other type of home loan, you will have certain paperwork and documentation that must be submitted to the lender as part of the application process.
The participating lender will need a range of financial information including your bank account numbers, tax information, and even a list of residences and employers from the last two years. This information is used to determine the borrower's credit, income, and employment with the most up-to-date information available.
Tax Information Needed
Mortgage loan applicants (for construction loans or otherwise) are required to furnish copies of their W2's from the last two years.
W2's document the borrower's net and gross income plus applicable taxes and withholding, and serves as a record of actual wages earned (which verifies what the borrower listed as income on the new construction loan application.)
Both FHA and VA requires the lender to obtain complete individual federal income tax returns for the most recent two years, including all schedules and self-employed borrowers will have additional requirements including two years of tax returns as well as the most recent quarter to date numbers.
Watch Out for Lender "Overlays"
FHA credit score requirements state FICO scores 500 or above typically qualify under FHA guidelines. FICO score ranges between 500 and 579 technically qualify for FHA home loans at a higher down payment (10%).
FHA loan standards say FICO scores at 580 or higher qualify for the lowest down payment under FHA rules. However, lender standards also apply, so be sure to ask your loan officer. Construction loans may feature different lender standards than others.
The VA Lenders Handbook does not set a minimum credit score for VA loans. Instead, the VA focuses on the borrower's overall creditworthiness, allowing individual lenders to set their own minimum requirements, which typically range from 580 to 620.
While these guidelines are clear, lenders can impose “Overlays” which are additional requirements which are determined by each lender. At this time, all known One-Time Close construction lenders familiar with our company require a minimum middle credit score of 620 for each borrower. The dilemma is that lower credit pricing for this loan will create a much higher interest rate from the lender – which is what you want to avoid.
See if you qualify for an FHA or VA One-Time Close construction loan.
FHA, VA, and USDA: One-Time Close LoansWant More Information About One-Time Close Loans?We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
All known FHA/VA One-Time Close Lenders known to our company will not allow a borrower to act as their own contractor, whatsoever. There cannot be self-builds, relative builds, or employer builds.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. No SSN required • No credit check • 100% free to get started
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,500,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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Articles, Updates, and Guidelines
Comparing One-Time Close Mortgages to Non-Residential Construction Loans
August 9, 2024Choosing the right mortgage is essential to build a new home. Some borrowers confuse residential construction loans with non-residential equivalents and waste time in their loan planning and saving stages, looking at options that do not suit their needs. One-Time Close construction loans are approved for residential properties. You can get these as a VA or FHA construction loan, and the usual occupancy requirements associated with VA loans and FHA mortgages apply to construction, too.
Single-Close Construction Loans vs. Two-Close Construction Loans: Pros and Cons
August 2, 2024Are you exploring your home ownership options and thinking about the construction of a brand-new home? Consider the basic loan options available: single-close construction loans and two-close construction loans. You may already know what loan type is right for you, but making an informed decision is key.
FHA Single Close Construction Loans
July 26, 2024The Federal Housing Administration (FHA) offers qualifying borrowers the option to build a home from the ground up using a Single Close FHA Construction Loan. This program, also known as a One-Time Close construction mortgage, allows borrowers to finance the construction of a new home and convert it into a permanent mortgage with just one closing, streamlining the often complex process of building a house.
