August 4, 2020

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Higher FHA Loan Limits For One-Time Close Construction Loans In 2019

Higher FHA Loan Limits For One-Time Close Construction Loans in 2019

The FHA and HUD have announced higher FHA loan limits in most counties for 2019. A small handful (under 200) counties in the entire country will not see higher loan limits, but the rest of the nation will see a higher FHA loan guaranty limit for single family, owner-occupied homes with between one and four units.

What does this mean for borrowers interested in an FHA One-Time Close Construction loan in 2019? If you need a home built for you from the ground up instead of buying an existing construction home, the FHA One-One Time Close program is for you.

FHA One-Time Close Mortgages Are Different Than Other FHA Mortgages

Lender requirements for FHA One-Time Close loans can be more strict than for existing construction loans. Higher FICO scores may be required, a lender may not necessarily be willing to approve a construction mortgage for borrowers who must be manually processed due to credit issues, and you may find that some lenders aren’t willing to do construction loans on multi-unit properties.

If you need more than one living unit in your new home, it’s a very good idea to shop around for the right lender who will work with you and your needs.

One-Time Close loans require the borrower to do things that wouldn’t be needed for an existing construction purchase, but some of these requirements are benefit to the borrower-working with an architect or choosing floor plans is something that gives you, the borrower, a say in how the home will look and feel.

This is one of the chief motivators for some to build instead of buy existing homes-the ability to customize. But doing so requires time and money, and the construction loan is a better choice for those with financial goals that don’t include trying to save as much up front and out of pocket as possible.

Borrowers who are willing to pay more up front and reap the benefits of those investments are a better fit for the One-Time Close loan. The idea being that money you spend in the beginning will be evident in the finished product.

One-Time Close Construction Loans Offer Flexibility, But They Require Time

Being free to choose a design and the right features for you is an important part of choosing the FHA One-Time Close construction loan, but it’s crucial to remember that doing so will take more time. Borrowers should expect the construction phase to take as long as the experts say your plans will take.

It doesn’t pay to be in a hurry with a construction project in any case, but borrowers should be prepared to wait out the process and the associated inspections and other procedures.

Want More Information About One-Time Close Loans?

One-Time Close Loans are available for FHA, VA and USDA Mortgages.  These loans also go by the following names: 1 X Close, Single-Close Loan or OTC Loan.

We have done extensive research on the FHA (Federal Housing Administration), the VA (Department of Veterans Affairs) and the USDA (United States Department of Agriculture) 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 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 in an effort 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, VA and USDA One-Time Close Construction Program only allows 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.

Your email to authorizes to share your personal information with a 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 are eligible veteran’s, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio VA will allow – there are no maximum loan amounts as per VA guidelines.  Most lenders will go up to $750,000 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.

Joe Wallace - Staff Writer

By Joe Wallace

December 21, 2018

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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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”.

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