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
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Is Now The Right Time To Build A Home?

Is Now The Right Time To Build A Home?
An article published by National Public Radio points out that house prices have increased as much as 40% in the last 24 months. That has left some potential borrowers wondering if it’s smart to build a new home right now.

The NPR report also mentions the fact that existing construction prices may have hit their peak in June of 2022, and since then prices on those homes have come down by as much as six percent.

If you are thinking about building a home instead of buying an existing home, you get to sidestep one of the difficulties house hunters have when trying to find a new place to live.

House Prices And Competition

One reason house prices are so high is because of the competition for the existing inventory. But when you build a home from the ground up, you aren’t competing with another borrower for the same house.

But in a year will it even matter? Won’t house prices begin to fall as they have started to already? 

Not according to some market professionals--some don’t believe that a sharp reduction in the price of the current housing inventory is likely. What’s more likely? A flattening of house prices. That could mean it’s easier for some to buy and harder for others. 

Build or Buy?

If you are thinking of building a house in the next year instead of buying an existing home, you won’t have the same challenges as someone looking for existing construction. But it may mean you have to come to the application process with stronger credit.

Higher interest rates can mean additional scrutiny on the finances of the borrower and that is something you will want to anticipate in the planning stages of your construction loan. Work on your credit longer, save up a larger down payment and make a plan to refinance your home loan when the rates become more borrower-friendly again.

Is it smart to build a new house right now? Some don’t have a choice and must look for a new home soon; for these people, it’s key to work on FICO scores and debt ratios well ahead of the loan application. In a rising interest rate environment.

If it’s a matter of waiting a few extra months to improve your credit and your chances at loan approval, it could make the difference in terms of loan approval and the interest rate you are offered. 

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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