The FHA One-Time Close construction loan FHA One-Time Close Loan is a mortgage that lets the borrower design and
There is an FHA version of the One-Time Close
The VA One-time Close construction loan has a 0% down / zero-down option. No money down is required for a VA construction loan up to the VA loan limit. See the end of this article for more information about finding a participating VA or FHA lender who knows these loans well.
The loan process begins with getting pre-approved for the FHA loan, then the borrower must find a general contractor for the project. Your lender will need to approve your choice, and once that is done the next step is to find a lot to build the home on.
The building project itself must also be approved. The builder must submit a list of costs to the lender, who reviews those expenses and structures the mortgage. The loan closes, the borrower pays the down payment, and the construction work begins.
The major difference in this type of construction loan is that there is only a single loan for both the construction of the home and the mortgage itself. Some types of construction loan require one loan for the construction and a separate loan for the mortgage, forcing the borrower to credit-qualify twice for the same home.
Not so with FHA One-Time Close mortgages, which eliminate the second round of credit qualifying. VA and FHA One-Time Close loans give the borrower more confidence to borrow and build knowing there’s no possibility of surprise with the single loan application and closing date.
Learn More About VA, FHA, Or USDA One-Time Close / Single-Close Construction Loans Today
We have done extensive research on FHA, VA and USDA 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 firstname.lastname@example.org 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 so, 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.