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

Construction Loans And Natural Disasters

Construction Loans And Natural Disasters
If you are building a home on your own lot with a One-Time Close construction mortgage, and you live in an area affected by a natural disaster, there are some things you should know during the recovery process. 

While it’s true that not every home may be damaged by a storm, flood, hurricane, or other disasters, it’s likely that if there is storm damage in the area where your construction project is happening that you will need to have an assessment of any possible damage to the home.

This will obviously require delays and alterations to your construction schedule. Much depends on whether there was any damage or not. In some cases, the work may proceed after only a slight delay.

In worst-case scenarios you and your lender may have to decide what to do about the project--move forward in spite of the worst-case details, or find an alternative course of action.
If the home was nearly complete and there is no damage, you may wish to move forward with the project. If there was damage it will require running the numbers to see how much extra the repairs will add to the overall cost.

Some borrowers may have already accepted the keys and have experienced damage to their brand-new homes shortly after moving in. 

For these scenarios, in addition to the insurance paperwork you’ll need to fill out to recover from the disaster, you should also look into your options for loan forbearance or modification where appropriate. 

Depending on the type of construction loan you have, you may qualify for additional consideration for disaster relief. Borrowers with government-backed construction loans such as VA, FHA, or USDA may have automatic foreclosure moratorium requirements and other disaster relief that can be used when needed.

That said, keep in mind that these options are typically for those in federal disaster areas, so a formal declaration of a federal disaster area may be needed to access some of that relief.

Even if you aren’t in a region with such a federal declaration, you should contact your loan officer right away in the aftermath of a disaster. You may have foreclosure relief and disaster recovery options, but you’ll need to coordinate with your financial institution. Disaster relief is not automatic and requires coordination with the lender.

If you are already making payments on your construction loan, do not assume payments are not due in the wake of a disaster. It’s best to continue paying on schedule as if nothing had happened until you have a chance to contact your lender and make alternative arrangements.

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. 

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.