Build your dream home with a single loan, a single closing, and a single set of fees. Finance your land, construction, and permanent mortgage all in one with as little as $0 down for qualified veterans.
A One-Time Close Construction Loan allows you to finance your land, construction costs, and permanent mortgage with a single loan and one closing.
Instead of managing multiple loans, approvals, and closing dates, this streamlined solution simplifies the entire homebuilding process from start to finish. You get predictable financing, reduced closing costs, and a smoother path to building your dream home — all with one approval.
Find out if you qualify for a one-time close construction loan. Free. No obligation. Takes 2 minutes.
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Finalize your plans and close once. Your rate is locked and construction funding is ready — no second closing.
Funds are released in stages. Once complete, your loan converts automatically — and you move in.
Traditional construction financing requires two separate loans and two separate closings. That means qualifying twice, paying closing costs twice, and risking interest rate changes between your construction loan and your permanent mortgage. A one-time close construction loan eliminates all of that.
Traditional construction financing requires two separate loans and two separate closings. That means qualifying twice, paying closing costs twice, and risking interest rate changes between your construction loan and your permanent mortgage. A one-time close construction loan eliminates all of that.
Close once and you’re done. No second application, no second appraisal, no second set of closing costs. On a $400,000 build, this can save you $5,000–$10,000 or more in duplicate fees.
Your interest rate is locked at your initial closing — before construction even begins. If rates go up during the 6–12 months it takes to build your home, you’re protected. With a two-time close, you’d be at the mercy of whatever rates look like when construction is finished.
With a two-time close, you have to qualify again for your permanent mortgage after construction. If your credit dipped, your income changed, or lending guidelines tightened during construction, your permanent loan could fall through, leaving you with a half-built house and no financing. With one-time close, you’re already approved for the permanent loan before the first nail is hammered.
During the construction phase, you only pay interest on the amount that’s been disbursed to your builder — not the full loan amount. This keeps your payments low while your home is being built.
VA and USDA one-time close loans require zero down payment. FHA requires just 3.5%. Even conventional programs start as low as 5%. Building a custom home has never been more accessible.
The average cost to build a new home in the United States ranges from $150 to $450 per square foot, depending on location, materials, and custom features. For a typical 2,000-square-foot home, that means a total build cost of $300,000 to $900,000 — before land.
| Home Type | Cost per Sq Ft | 2,000 Sq Ft Estimate |
|---|---|---|
| Budget / Basic Build | $100 – $150 | $200K – $300K |
| Standard / Mid-Range | $150 – $250 | $300K – $500K |
| Custom / High-End | $250 – $450+ | $500K – $900K+ |
| Luxury / Architect-Designed | $450 – $750+ | $900K – $1.5M+ |
Your actual cost depends on your state, lot conditions, builder, materials, and custom features. The good news? A one-time close construction loan can finance all of it — land, construction, and permanent mortgage, in a single loan with a single closing.
A One-Time Close Construction Loan simplifies the homebuilding process by combining the financing for your land, construction, and permanent mortgage into a single loan with just one closing. Instead of dealing with multiple loans and repeated approvals, you begin by getting pre-approved based on your credit, income, and overall financial profile, which helps establish a clear and realistic budget.
Once approved, you’ll select a buildable lot, choose a licensed and lender-approved builder, and finalize your home design, plans, and construction costs. The lender then orders an appraisal based on the future value of your completed home, ensuring the project meets lending guidelines. After approval, you move forward with a single closing that covers everything—eliminating the need for a second loan or refinance later. During construction, funds are released in stages as progress is made, with inspections at each phase to ensure quality and accountability.
Once your home is complete, the loan automatically converts into a standard mortgage, allowing you to move in without any additional closing or paperwork. This streamlined approach reduces costs, minimizes risk, and makes building a home far more efficient and predictable compared to traditional construction financing.
| Feature | One-Time Close Construction Loan (General) | VA One-Time Close Construction Loan |
|---|---|---|
| Eligibility | Open to most qualified borrowers | Only for eligible veterans, active-duty service members, and some surviving spouses |
| Down Payment | Typically 3% – 20% | $0 down for most eligible borrowers |
| Loan Types | FHA, Conventional, USDA | Backed by VA |
| Mortgage Insurance | Required (PMI/MIP) | No monthly mortgage insurance |
| Funding Fee | Included via PMI/MIP | One-time VA funding fee |
| Interest Rates | Market-based | Often lower |
| Credit Requirements | Typically 620+ | More flexible |
| Builder Requirements | Lender-approved | VA-approved builder |
| Closing | One closing | One closing |
| Best For | General homebuyers | Veterans ($0 down) |
A one-time close construction loan is a single mortgage that finances your land purchase, home construction, and permanent mortgage all in one loan with one closing. Instead of getting a separate construction loan and then refinancing into a permanent mortgage later, you close once and your loan automatically converts when construction is complete.
FHA one-time close loans require a minimum credit score of 580 (some lenders require 620). VA construction loans typically require 620–660. Conventional construction loans generally require 680–700 or higher. The better your credit score, the better your interest rate.
Yes. If you already own the land, your existing equity in the land can count toward your down payment, potentially reducing or eliminating the cash you need to bring to closing.
A: Most lenders allow 6 to 12 months for construction, though some programs allow up to 18 months for larger or custom builds. During construction, you typically make interest-only payments on the funds that have been disbursed to your builder.
A one-time close loan combines construction and permanent financing in one closing. A two-time close requires two separate loans and two separate closings — one for construction and another for the permanent mortgage. One-time close saves money on fees, eliminates requalification risk, and locks your rate before construction begins.
A one-time close loan combines construction and permanent financing in one closing. A two-time close requires two separate loans and two separate closings — one for construction and another for the permanent mortgage. One-time close saves money on fees, eliminates requalification risk, and locks your rate before construction begins.
VA construction loans are available to eligible veterans, active-duty service members, National Guard and Reserve members with qualifying service, and certain surviving spouses. The VA requires $0 down and no mortgage insurance, making it the most advantageous construction loan program available.
You don’t need to have a builder selected to get pre-qualified. However, you will need to choose a licensed, approved builder before your loan can close. Your builder must typically have at least 2–3 years of experience building residential homes and meet the lender’s requirements.
Funds are released in stages called “draws” as your builder hits construction milestones (foundation, framing, roofing, etc.). An inspector verifies the work is complete before each draw is released. This protects both you and the lender by ensuring the project stays on track and within budget.
"We were told by two other lenders that construction loans were too complicated. Then we found this team. They walked us through the FHA one-time close process step by step. We built our dream home with 3.5% down and closed on everything in one shot. Couldn’t be happier."
"As a veteran, I knew I qualified for a VA loan to buy a home, but I didn’t know I could use it to BUILD one. Zero down, no PMI, and one closing. We built a custom 3-bedroom on our own land and the whole process took 10 months from application to move-in."
"The rate lock at closing was the biggest advantage for us. Rates went up almost a full percent during our build, but we were locked in at our original rate. That saved us over $200 a month on our permanent mortgage. The one-time close was absolutely the right choice."
Your complete guide to one-time close construction loans. We help you understand the process, compare loan programs, and get pre-qualified with a licensed construction loan specialist. FHA, VA, USDA, and conventional programs available.
How One-Time Close Loans Work
One-time Close Construction Loan
OTC vs Two-Time Close
Requirements & Qualifications
Cost to Build a House 2026
VA Approved Builders
VA One Time Close Consturction Loan
