One-Time Close Loans | FHA and VA Construction Loans
VA and FHA One-Time Close Construction Loans

- Build a Home on Your Own Lot -
VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

How Much Can You Borrow to Build?

How Much Can You Borrow to Build?
If you want to build your home instead of buying someone else’s house, there is a type of construction loan that can help. The One-Time Close construction loan eliminates the need for a second loan application and approval process compared to some other types of construction loan.

And there are different types of One Time Close mortgage to choose from. You may be eligible for a One-Time Close construction mortgage in multiple programs, which one is right for you?

FHA One-Time Close Construction Loans

Unlike the USDA construction loan, FHA One-Time Close loans are NOT need-based, do not feature income caps, and are available with a very low minimum down payment requirement of 3.5%. FHA Construction Loans do not require you to be a first time home buyer--this is a myth that still persists about FHA mortgages in general.

FHA One-Time Close loans allow you to build on your own land or on land you buy in conjunction with the mortgage. If you own your land and have equity built up in it, ask your loan officer about using the land equity as a down payment.

The amount you borrow will depend on both the FHA loan limits in the area where you are building as well as any closing costs you are permitted to include into the loan amount.

But the home loan limit will not be diminished if, for example, you choose to include the FHA Up-Front Mortgage Insurance Premium (UFMIP) into the loan amount--your loan limit is determined by the asking price of the home and the limit is not affected by you financing the UFMIP.

VA One-Time Close Construction Loans

VA mortgages are unique among these One-Time Close loans since the Department of Veteran’s Affairs eliminated the cap on the maximum lending limits for VA mortgages for those who have 100% of their VA loan entitlement to use on the transaction.

You read that correctly--VA mortgages have no loan limits in such circumstances. This is NOT the case for FHA, Fannie Mae, or Freddie Mac conventional loans where the construction loan programs are capped by the county limits for each program. You and the VA lender will negotiate the loan limit for your mortgage.

A participating VA lender offering this VA Construction Loan program can impose a maximum loan amount for $0 down VA construction loan that ranges from $750,000 on up to $1,500,000. It is a very good idea to talk to a participating VA lender to discuss this option as it can save a qualifying borrower (VA loans are for military members, veterans, and certain surviving spouses of military members who died as a result of military service) a lot of money out of pocket.

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. 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: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.

Contact Us:  Send us your Request – Spam Safe

Please send your email request to [email protected] which authorizes to share your personal information with one mortgage lender licensed in your area to contact you.
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.
See Your Credit Scores From All 3 Bureaus

Do you know what's on your credit report?

Learn what your score means.

Articles, Updates, and Guidelines
OTC articles
Construction Loan Terms To Remember Before You Start

There are many industry terms unfamiliar to first-time home buyers, especially those looking for a One-Time Close construction loan. Knowing some of these terms in advance can help you make better decisions in the planning stages of your single-close loan. We examine some important construction loan terms below to help you better navigate the process.

What To Know About Construction Loans Before You Apply

There are a lot of myths about home loans in general and a few pervasive ones about construction loans worth dispelling. What do you need to know when you commit to building your own home from the ground up?

Construction Loan Approval Rules For Employment And Income

If you want to build your own home, it’s good to know that doing so means taking some extra time to work on your credit and employment history before applying. Construction loans are harder to qualify for with income and employment for some, what do you need to know before you start the process? We examine some key points.

-- Find More Articles in the OTC Library -- is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

SecureRights Advertiser Contact Information

One and Won is a registered trademark of Texcorp Mortgage Bankers, Inc.