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

One-Time Close Loan Approval: Credit Habits

One-Time Close Loan Approval: Credit Habits
During the pandemic, many experienced financial troubles that required tough choices about which debts to pay and making ends meet.

Americans who experienced hard times may have watched their credit scores suffer and coming out of the pandemic many vowed to do better and restore their credit to pre-pandemic numbers.

In 2022 and going into 2023,  many come to the construction loan process with credit that might not be as competitive as it once was. But there are things you can do over time to be more competitive as a potential borrower. One of those things is eliminating bad credit habits.

It may seem like hard work to get started, but many of us had to adopt credit behaviors in the short term that damaged our credit. Cutting those behaviors + time can equal improved FICO scores and a better chance at One-Time Close construction loan approval.

Start Or Continue Checking Your Credit

If you want a construction loan but don't check your credit on a regular basis, you are at a serious disadvantage. One-Time Close loans typically have more strict credit requirements and you'll want every advantage going into the application process as possible.

Pay On Time

Not paying on time, every time is among the top reasons for lower FICO scores. We all had to skip payments on SOMETHING during the pandemic and beyond, but you'll want to put at least 12 months between your last late or missed payment and your single-close construction loan application for the best results.

Borrowers who have eliminated late or missed payments from their 12-month credit history have a much better chance at loan approval compared to those who did not.

Credit Card Habits

Are you using a credit card to pay monthly debt like utility bills? Some started doing this during the pandemic and never switched back. But you should not do this when trying for a large line of credit like a construction loan.

Why? Because the amount of credit you use is an important factor in loan approval. Does your lender see balances close to the credit limit on multiple accounts? That won't help you where your credit utilization score is concerned. Your lender will review your credit card account balances to see how many are close to the maximum--well below 50% is recommended.

What's Next?

A major factor in making these credit corrections is time--FICO scores do not change overnight. As your credit work starts showing up in your credit reports, you'll see the results of your hard work.

But be sure to give the process enough time to work--even after three or four months the improvements may seem gradual, but don't give up. Allow the process time to work properly.

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.