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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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July 15, 2019
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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

FHA Forward Mortgage Loan Options

July 5, 2019 - An FHA forward mortgage allows the borrower to apply for funds to purchase the home, with options to finance the Up-Front Mortgage Insurance Premium and certain approved, appraiser-required corrections where applicable.

One-Time Close Construction Loans in Texas

June 20, 2019 - FHA / VA / USDA One-Time Close construction loans are an important option to consider for those looking to build  a new home in Texas. Texas home values have gone up 5.6% over the past year and Zillow predicts they will rise 4.0% within the next year.

I'm Not a First-Time Homebuyer. Is the FHA Program for Me?

May 2, 2019 - The FHA mortgage program (including reverse mortgages, refinance loans, One-Time Close construction mortgages, and FHA rehab loans) does not refuse a potential borrower simply because they have borrowed before, have had a mortgage in the past, or already own property.

FHA One-Time Close Construction Loan Rules and Lender Requirements

April 21, 2019 - When you examine your FHA construction loan options, choosing between a One-Time Close construction loan and other construction loan options with two loans and two closing dates are only part of your decision-making process.

Do FHA One-Time Close Mortgages Require a Down Payment?

April 20, 2019 - There are FHA One-Time Close construction loans, but also USDA and VA One-Time Close construction loans. When you choose the FHA version of the OTC, there are some important differences you should know.

FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!