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!

- Build a Home on Your Own Lot -
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
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
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.

Construction Loan Interest Rates For The Rest Of 2024

Many financial pundits and mortgage blogs discuss the current state of construction loan interest rates. Some of these sites make predictions, including noting that One-Time Close construction loan interest rates will likely stay around the mid-6 % range for the rest of 2024. Those hoping to build a home from the ground up this year with interest rates closer to pre-pandemic levels are likely to be disappointed. What should borrowers expect going forward? Is it smart to delay a construction loan until the Fed cuts rates again?


-- Find More Articles in the OTC Library --

OneTimeClose.com 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 OneTimeClose.com 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.