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

Five Tips To Help You Get Ready For Your Construction Loan

Five Tips To Help You Get Ready For Your Construction Loan
There are five things to know about One-Time Close construction loans that can help you make more informed decisions in the planning stages of the loan. The planning phase is extremely important and you will want every advantage possible in preparing for the transaction. Here are five things to remember about construction loans.

One-Time Close Loans Require More Scrutiny From The Lender

Construction loans have tighter credit guidelines than existing construction loans. You will want your credit to be as prepared as possible going into the application process. Don’t start the application if you don’t know your credit scores and the contents of your credit report very well.

One-Time Close Loans Require Permits

Buying an existing home won’t require a building permit unless you purchase a fixer-upper or have required corrections to make as a condition of loan approval.

A single-close construction lender will advise you to be mindful of the permit processing times in your housing market. If you don’t know how long it takes to have permits approved in your area, find out. 

Some housing markets take longer to process and approve building permits. Weeks or months in some cases, depending on the housing market. Ask about this variable early.

Know Your Hazards

If you commit to a construction loan without doing some basic research into whether your new home might be in a flood or forest fire zone, you’re taking unnecessary risks. Learn about the conditions in your chosen neighborhood and what you may need to consider to make an informed choice about the location of your brand-new dream home.

Don’t Neglect The Down Payment

One-Time Close loans typically require a down payment (VA loans are the exception) but unlike an existing construction loan, down payment assistance may not be available to help build your house.
You won’t want to apply until you are certain of your down payment funds.

The elevated risk to the lender for a construction loan means you will be required to come up with your own down payment instead of relying on a local down payment assistance program.

Research Your Overall Costs

We aren’t just talking about how much the loan will cost over the lifetime of the mortgage. What about the choices you make when deciding on appliances, windows, doors, and other options?

Going the budget route might cost you more over the long run if you aren’t investing in energy-efficient options designed to make your home more environmentally friendly and cost effective. Compare the costs of the options you want to install but be sure to include how much you might pay in utility bills or other expenses if you don’t go with more modern and energy-efficient options.

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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