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

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VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

What To Ask Yourself About Your Construction Loan

What To Ask Yourself About Your Construction Loan
Planning a single-close construction loan means asking some important questions about the nature of the house you want to build. You want to address these issues as early as possible in the planning stages to ensure you are making the right choices for your mortgage. But what kind of issues?

Is It Right For You?

The first place to begin is to ask if a one-time close construction loan is the right option for you. If you need a property that is larger than one living unit, you may wish to consider buying an existing home as many one-time close lenders restrict the project size to a single unit. Not all do so, but it’s definitely a question you will want to ask a potential lender as early as possible.

If you want a single-unit home, the next step is to decide where the home is to be built--on land you already own, or on land you acquire with the loan. In typical cases, you are not required to currently own a plot of land. 

Buying Land

You can make a land purchase in conjunction with the loan. Be sure to ask the lender what is required by state law, lender standards, etc. if you need to buy land as part of the deal. Once the land issue is out of the way, ask yourself what property type you are interested in building. 

The reason we mention this is because certain types of homes aren’t possible with a construction mortgage. Some lenders won’t approve such a loan for log cabin homes, stilt houses, barndominiums, etc. 

Fixtures And Features

The next phase of your planning is something you might not have considered up to this point, but when you choose a contractor you’ll need to decide on the quality of things like your fixtures countertops, sinks, baths, etc. 

Do you prefer budget, midrange, or upscale features like these? The price point on certain upscale materials or fixtures may make you think twice. It’s a good idea to contact some contractors to ask about the price ranges of these items to make a more informed decision about them.

Down Payment

Before you actually discuss plans with a lender or contractor, you will need to review your finances. The down payment issue for construction loans will vary depending on the type of single-close mortgage you want; FHA, VA, conventional, etc. 

The down payment issue is important because typically, participating lenders don’t allow down payment assistance programs for construction loans.

The basic idea seems to be that if you have difficulty coming up with a down payment, this type of mortgage may not be right for you in the eyes of a particular lender. If the down payment issue is problematic, it may be smart to consider buying existing construction where you ARE allowed to use down payment assistance. 

Construction loans have less flexible standards in some areas because the risk is elevated for the lender, keep that in mind when weighing your options to build or buy.

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 with 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 allow 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 is an eligible veteran, 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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