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The FHA One-Time Close Loan allows borrowers to finance the construction, lot purchase, and permanent loan into a single mortgage. It provides for a single all-at-once closing with a minimum down payment of 3.5 percent. Avaliable loans vary based on FHA county lending limits.

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February 21, 2020
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FHA.com is a privately owned website, is not a government agency, and does not make loans.

FHA One-Time Close Loans

Financing for Construction, Lot Purchase, and a Permanent Mortgage

FHA One-Time-Close Loans

The FHA One-Time Close Loan is a secure, government-backed mortgage program available for one-unit, stick-built primary residences, new manufactured housing for primary residences (excludes single wide mobile homes), and modular homes.

It allows borrowers to finance for the construction, lot purchase (if necessary), and permanent loan into a single mortgage. It provides for a single all-at-once closing with a minimum down payment of 3.5 percent (up to your FHA county lending limit).


About the FHA One-Time Close Program

About FHA One-Time Close Loans

The One-Time Close Loan gives buyers a new option -- a single loan with one single closing date, and a defined set of parameters for how the loan is to proceed during the construction phase and beyond.

Most construction loans require two separate closings—once to qualify for the construction itself, and again when converting into a permanent mortgage. The One-Time Close Loan gives buyers a new option.


One-Time Close - Buyer Benefits

FHA One-Time Close Loans: Buyer Benefits

Many potential borrowers aren't aware that they have the option of building their dream home as a part of one, consolidated home loan. The FHA One-Time Close Loan offers them a number of advantages to avail in doing so.

Homebuyers can also take advantage of the FHA’s lenient qualifications, such as easy credit qualifying for scores, more flexible guidelines for homebuyers’ work histories, small escrow reserve requirements, and debt-to-income ratios up to 50 percent.


One-Time Close - Builder Benefits

FHA One-Time Close Loans: Builder Benefits

The FHA Construction-to-Permanent program helps contractors with a smooth, start-to-finish process that allows consumers to purchase and build a home according to their liking, all in a single mortgage.

Sellers and builders can make contributions of up to 6 percent toward the homebuyer’s closing costs and prepaid items. Any contribution funds beyond that are reduced, dollar-for-dollar, from the loan amount.


Contact Us About One-Time Close Loan Opportunities

We have done extensive research on both the FHA One-Time Close Construction program as well as the VA (Department of Veterans Affairs) One-Time Close Construction program. We spoke directly to the licensed lenders that originate these residential loan types in 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 licensed in your area to contact you.

Please note that investor guidelines for the FHA and VA 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? 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.

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FHA Loan Articles and Mortgage News

One-Time Close Construction Loans: No Loan Limits?

January 21, 2020 - Is there really a construction loan that lets you build a house on your own lot with no loan limit? AND a zero-down loan at that? Believe it or not, such a loan DOES exist. It’s the VA Construction Loan, which can be offered as a One-Time Close mortgage.

There Are Different Kinds of One-Time Close Construction Loans

January 13, 2020 - A One-Time Close loan can help you build a home without the requirements some other construction loans have -- two applications, two loans, and two closing dates. These construction loans are for first-time home buyers AND experienced home owners alike.

Applying for a 2020 One-Time Close Construction Loan

January 9, 2020 - FHA One-Time Close construction loans are intended to help those who want to own and occupy a home to build from the ground up on their own land. There is also a VA loan equivalent to the FHA construction loan that, starting in 2020, features no down payment.

Five FHA Loan Rules for Down Payments

December 26, 2019 - What do you need to know about the FHA home loan rules for down payments? The first thing to remember is that down payments are required on all FHA purchase loans whether for a Condo loan, a One-Time Close construction loan, or other types of FHA loan used to buy or build a house.

One-Time Close Construction Loan Mortgage Payments

December 20, 2019 - 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.