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 Loans: Who Should Apply?

One-Time Close Loans: Who Should Apply?
Who should consider a One-Time Close construction mortgage? Is building a home better than buying one? The answer depends on your financial needs and goals, but for some, the answer is obvious--there is a real benefit in having a say over your home’s design, the materials it’s made of, and other details.

The key is to decide early in your home loan planning process whether existing or new construction suits you.

Take Stock Of Your Finances

Being able to afford a construction loan is essential. These mortgages can cost more than existing construction loans and may be more complex. Don’t be afraid to confront your financial strengths and weaknesses. 

It’s better to make a smart choice about your new home with realistic expectations about how to afford it. 

Part of the reason you’ll want to be honest with yourself in this area has a lot to do with the fact that your lender definitely will similarly scrutinize your finances. Thinking like a loan officer can help you prepare for the loan correctly. And on a very related note...

Cash Reserves

There is no subtle way to say it. A construction loan is likely not right for you if you struggle to come up with down payment funds on your own and without help. 

One-Time Close lenders typically don’t allow down payment or closing cost assistance from local agencies; the thinking here trends toward “If you can’t make the down payment, how will you manage to pay for this more expensive loan down the line?”

The Timing Of Your Loan Counts

What we mean by “timing” has a lot to do with how soon you want to move into a new residence. Borrowers hurrying to get the keys don’t do well with construction loans unless they adjust their expectations. Building your home means establishing a time frame for construction and completion.

No problem, right? Except that building a home, in terms of efficiency and staying on schedule, works a bit like an airline. Planes don’t fly when the weather is bad enough to cancel flights, and hammers don’t swing on a construction project for similar reasons.

Your home’s completion could be delayed by any number of variables beyond your and the contractor’s ability to control.

A hurricane, flood, mudslide, train derailment, or any other factor could conspire to slow down the work on your property. You may or may not have contingency plans for this, but the bottom line? Expect delays. Borrowers in a hurry may do better to purchase existing construction.

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 VA 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.