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. Available loans vary based on FHA county lending limits.

FHA.com: 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 -

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


FHA Loan Articles and Mortgage News

Working on Your Credit Before Applying for an FHA Mortgage

April 11, 2024 - FHA home loans offer borrowers more forgiving credit qualifying requirements than some conventional mortgages, but borrowers must still qualify for the loan with FICO scores and credit history information. What can you do to improve your credit scores before applying for a loan?

Will FHA Loan Requirements Change Following the NAR Case?

April 10, 2024 - When CBS News reported that the National Association of Realtors agreed to pay $418 million over roughly four years to resolve all claims against the group by home sellers related to broker commissions, the news sent shockwaves through the real estate industry.

What's the Right Kind of Home Loan for You?

April 9, 2024 - If you have never bought or built a home before, it would be easy to assume there is just one type of loan offered and that it’s just a matter of picking a condo, existing construction, new construction, or deciding to build on your own land.

What the Pros Say About Spring 2024 Mortgage Rates

April 8, 2024 - Do experts think mortgage rates will drop during the spring of 2024? Some say no, but that doesn’t mean house hunters should give up hope. Many hang their hopes on the potential that the Fed will cut interest rates in late spring or early summer.

What Will Disqualify You from Getting an FHA Loan?

April 7, 2024 - If the home can’t pass the appraisal or if the home can’t be repaired to pass an appraisal, this could result in the lender denying the loan. The same is true if the home is located too close to high voltage power lines, oil or gas drilling operations, or in certain natural disaster hazard zones.