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. Home Purchase and Refinance Loans

FHA Loan Programs for 2024

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

Are You Watching Your Credit Score?

- Improving Your Credit Score Has Never Been More Important - is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type is a privately owned website, is not a government agency, and does not make loans.

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 FHA, VA, and USDA: One-Time Close Loans

Want More Information About One-Time Close Loans?

We have done extensive research on the FHA (Federal Housing Administration), the VA (Department of Veterans Affairs) and the USDA (United States Department of Agriculture) 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. provides information and connects consumers to qualified One-Time Close lenders in an effort 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, VA, and USDA 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:  Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.
Your email to [email protected] authorizes 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 per VA will allow – there are no maximum loan amounts as per VA guidelines.  Most lenders will go up to $750,000 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.

Do you know what's on your credit report?

Learn what your score means.