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One-Time Close loans are meant to streamline the construction loan process by eliminating the need for a separate loans. They reduce two applications, two loan approvals, and two closing dates into a single loan with no worries about being denied for the second loan.

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One-Time Close Construction Loan Mortgage Payments

December 20, 2019

How much will your monthly mortgage payment be for an FHA or VA One-Time Close construction loan? 

These loans are meant to streamline the construction loan process by eliminating the need for a separate loan to build the home, reducing two applications, two loan approvals, and two closing dates into a single loan with one closing process and no worries about being denied for the second loan.

So with the One-Time Close loan, you don’t have to apply twice; some borrowers at this stage ask “What’s the catch?” They expect higher down payments required in exchange for the simpler loan, or they expect that they cannot build a home from scratch with a One Time Close loan as a first-time borrower.

But neither of those things are true--you can apply for a construction loan as a first-time buyer and you don’t have to make a larger down payment just because you want to build on your own lot instead of buying someone else’s property.

So how do you estimate the monthly mortgage payment on an FHA or VA construction loan?

Online mortgage calculators can help. The online mortgage calculator can help you determine an estimate of the monthly payment, how much loan you can afford, and more but the right information is needed to make the process work.

What is that information? Your proposed loan amount divided by the loan term (the number of months you will pay on the loan) is important, but you must also factor in hazard insurance, mortgage insurance premiums and other costs included in the loan such as when the borrower chooses to finance the FHA Up-Front Mortgage Insurance Premium.

Aside from principal and interest, the following expenses may affect the amount of your monthly payment with an FHA One-Time Close construction loan or its’ VA construction loan equivalent:
 
  • Property taxes
  • Hazard insurance
  • Mortgage insurance
  • Required special assessments
  • Payments for any secondary financing
  • Escrow requirements

It IS possible to get a realistic estimate using an online mortgage calculator. Remember that the actual amount of your expenses may vary depending on circumstances; regulatory changes, alterations in bank policy, or simple market cost fluctuations may affect the final amounts. For best results, discuss your needs and concerns with a loan officer--be sure to ask how much of these expenses (the estimated dollar amount) is considered customary when estimating your monthly payment.


Construction Loans at OneTimeClose.com FHA, VA, and USDA: One-Time Close Loans


Learn More About FHA One-Time Close Construction Loans

We have done extensive research on FHA One-Time Close mortgages 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 [email protected] authorizes FHA.com to share your personal information with a licensed mortgage lender in your area to contact you.

Please note that the FHA One-Time 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?

5. 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 payme

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