December 9, 2019

Vimeo Channel YouTube Channel

How Do You Get A One-Time Close FHA Construction Loan?

How Do You Get A One-Time Close FHA Construction Loan?How do you get an FHA construction loan? If you want to have a new home built from the ground up (as opposed to buying an “existing construction” home that already exists), an FHA new construction loan is possible. The FHA One-Time Close / Single-Close construction loan makes it much easier with a single application and closing for the entire project.

Other types of construction loans feature TWO closing dates and a more complex process. FHA One-Time Close mortgages simplify the construction loan by wrapping the entire loan process up with a single application and loan approval.

Not all FHA lenders offer construction loans, so you’ll need to shop around to find the right lender for your needs. There are two basic types of FHA construction loans-a “traditional” construction loan, and an FHA One-Time Close loan. Be sure to ask your chosen participating lender if she offers One-Time Close loans.

Discuss this as early in your application process as possible One-Time Close FHA mortgages have different requirements than the traditional construction loan including different FICO score requirements.

As mentioned above, FHA One-Time close construction loans have a single transaction for the entire process,  and the borrower is not required to qualify for two different loans. That’s a feature of other types of construction loans which may add risk in some cases if the borrower’s credit position, debt-to-income ratio, or other factors changes between the two loan approvals. For One-Time Close transactions, you will only have to qualify once.

For both types of FHA construction loans, you’ll find that the down payment rules, occupancy standards, escrow account requirements and other areas are similar. It is a very good idea to give yourself more time in the preparation process for new construction loans as you may wish to save up additional funds for any required compliance inspections, research construction timelines and typical start-to-close times, etc. One-Time Close loans may feature additional restrictions or requirements depending on the lender.

For example, some lenders will approve FHA One-Time Close loans for manufactured housing, others may require that the transaction be to purchase “stick-built” homes. Ask your lender if the type of home you seek is able to be built using this type of FHA mortgage.

Learn More About FHA, VA and USDA One-Time Construction Close / Single-Close Construction Loans

We have done extensive research on One-Time Close / Single-Close mortgage loans and spoke directly to the licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the product well.

Each company has supplied us the guidelines for their product. If you are interested in being contacted by one licensed lender in your area, please respond to the below questions to save time. All information is treated confidentially.

Your response to authorizes us to share your personal information with a licensed mortgage lender in your area to contact you.

Please note that the One-Time Close / Single-Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multifamily units (no duplexes, triplexes or fourplexes).

  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 credit score and/or the Co-borrower’s credit score, if known. 620 is the minimum qualifying credit score for this product.
  4. Are you or your spouse (Co-borrower) eligible veterans?  If either of you are eligible veteran’s, the down payment is $0 up to the maximum VA lending limit for your county. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
Bruce Reichstein - Staff Writer

By Bruce Reichstein

November 22, 2017

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

Connect with Bruce:


Browse by Date:

About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

5850 San Felipe Suite #500, Houston, TX 77057 281-398-6111. is privately funded and is not a government agency.

Share This