One-Time Close Loans | FHA and VA Construction Loans
VA and FHA One-Time Close Construction Loans

With a One-Time Close loan you cannot act as your own builder. Let us help you find the best builder to make your dream home a reality!

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VA Loan - One-Time Close Construction Loan
FHA Loan - One-Time Close Construction Loan

Finding the Right Home Builder

Finding the right builder can be a challenge, especially for first-time buyers who don't know where to start. That's where we can help! Our lenders have created relationships with many contractors who are experienced in the One-Time Close process. They can help get you in touch with knowledgeable contractors who are not only familiar with this particular mortgage process, but can also help guide you to make the best choices, while keeping the vision you have for your new home!

However, if you're a homebuyer planning to find and employ your own contractor, it's important that you know the guidelines every builder must meet for FHA or VA Single Close Loans.

Learn About the One-Time Close Constuction Loan
"As a homebuyer, you need to find and employ a contractor who meets the requirements of the FHA or VA lenders."

Do I Need to Hire a Builder?

Beaver talks about finding your builderFirst things first- you cannot act as your own builder, whether or not you have the experience. Nor can you be responsible for hiring any sub-contractors. The builder you select must be a separate party who acts as the general contractor or construction coordinator, meaning he is responsible for "turnkey" completion of the property and all site improvements. You cannot hire a contractor you are related to, either!

Note: Borrowers should know that while FHA and VA loan rules permit the borrower to act as their own builder, lender standards still apply. Seller, borrower, and/or family members cannot act as contractor or complete any work on the home. Just to be clear, you must use the licensed/approved builder from start-to-finish and cannot deviate from the plans whatsoever.

Connecting the Builder and the Lender

Any builder you select needs to be registered with your lender. While the guidelines may differ depending on the lender, your builder will typically need to send in certain documents to gain authorization, such as:

  • Complete Builder/Retailer Application package provided by your loan officer
  • Builder/Retailer State License
  • Certificate of insurance for inland marine coverage, or builder's risk/course of construction insurance will be required on every loan
  • Certificate of insurance for General Liability and Workers Compensation (or letter explaining why it is not required)
  • For site-built homes: 2 years federal tax returns and year-to-date profit/loss statement, current balance sheet or personal financial statement, and executive summary with overview of experience and history on company and principal
  • For VA approval, builders/retailers will need to be registered with the VA
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Articles, Updates, and Guidelines
OTC articles
Tips On Using Construction Loan Builders

If you would rather build your own new home than buy somebody else’s dream house, you have many options, including FHA One-Time Close mortgages and VA construction loans. No matter your loan type, the need for third parties, including builders, inspectors, and appraisers, is real. You likely won’t be allowed to act as your own builder, electrician, or plumber. Screening these third-party services is important.

How To Compare One-Time Close Lenders

When you decide to build your dream home, one important step is comparing participating One-Time Close lenders for VA and FHA options. When you are ready to start shopping around for a lender, it’s smart to list standard questions to ask each loan officer or financial institution. What questions should you ask when comparing OTC lenders?

The Importance Of Your Budget To Build A New Home

Do you want to build a home from the ground up using a One-Time Close construction loan? Those who invest in construction or renovation projects know some simple guidelines about planning the budget. If you are new to this type of home loan, you'll want to budget like the pros and there are some simple ways to do that.


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