Quantcast

The FHA One-Time Close Loan is a secure, government-backed mortgage program for construction projects. All FHA products have the same requirement, but lenders can place additional guidelines on these loans.

FHA Loan Programs for 2022

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?

NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.


- Improving Your Credit Score Has Never Been More Important -

Get started one
Get started two
Get started three
Get started four
FHA.com is a privately owned website, is not a government agency, and does not make loans.

Choose a Loan Type

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

About FHA One-Time Close Construction Loans

A Construction Loan Backed By the Government

About 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 (no single wide mobile homes), and modular homes. It allows borrowers to finance for the construction, lot purchase (if necessary) and permanent loan into one loan and a single closing all at once with a minimum down payment of 3.5 percent (up to the FHA county lending limits).

Most construction loans require two separate closings—once to qualify for the construction itself, and again when converting into a permanent mortgage. When the builder gives the clear to close on a home and it’s time to move in, the buyer has to pay off the construction loan and apply for a new mortgage. These regular construction loans come with two closing dates, and require the homebuyer to requalify with credit checks, verification of employment, additional closing costs, etc.

The One-Time Close Loan gives buyers a new option. The FHA handbook, HUD 4000.1, refers to this as a “construction-to-permanent” mortgage. This is 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. An escrow account is required to pay the expenses of construction and related fees, and the borrower will not be obligated to make mortgage payments until a specified time after the final inspection of the completed work (usually within 60 days).

Getting Ready

All FHA products have the same requirement, but lenders can place guidelines in addition to those minimum FHA standards. The usual advice about not having any late or missed payments 12 months leading up to your home loan application is appropriate in this case. To get ready for a construction loan, it’s good to work hard on reducing debt-to-income ratios, avoid applying for new lines of credit, and pay close attention to your credit report to avoid delays because of errors, outdated information, or other problems.

Want More Information About One-Time Close Loans?

We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) 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.

FHA.com provides information and connects consumers to qualified One-Time Close lenders 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 and VA 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, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.

Contact Us: Send Us Your Request - Spam Safe

Please send your email request to [email protected] which authorizes FHA.com to share your personal information with one mortgage lender licensed in your area to contact you.

Your email to [email protected] authorizes FHA.com 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 veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio will allow per VA guidelines. While there are no maximum loan amounts, most lenders will go up to $1,000,000 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.

One-Time Close Construction Loans

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


GET STARTED

FHA Loan Articles and Mortgage News

One-Time Close Loans vs. Owner-Builder Loans

October 25, 2022 - Do you want to explore your home loan options for building a new home from the ground up? There is an FHA loan for that. Do you want a fixer-upper? There is a different type of FHA mortgage for that type of purchase. A participating FHA loan officer can help you to apply for the right loan.

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

October 22, 2022 - 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.

Why FHA One-Time Close Construction Loans Are Different

October 16, 2022 - FHA Construction loans are unique compared to other FHA loans used to buy existing homes. These loans are comparatively simpler, less costly than building your own home, and in many cases you can move into the house once you have hit closing day and get the keys.

Buying a Multi-Unit Home With an FHA Mortgage

October 12, 2022 - Depending on your financial needs and goals, buying a multi-unit property with an FHA mortgage makes sense. After all, the FHA down payment requirements and FICO score rules are the same whether you are buying a single-unit home or a property with up to four living units.

FHA Construction Loan Down Payments

October 7, 2022 - FHA One-Time Close construction loans are a bit different than other FHA home loan options. These loans have some unique requirements and typically those are associated with lender requirements and not FHA loan rules.