One-Time Close Construction Loans

Builder Approval & Program Overview

Our FHA, VA, and Conventional One-Time Close Construction Loan options give builders a way to help qualified buyers finance the construction of a new home and permanent mortgage with one loan and one closing.

Program Options

FHA, VA & Conventional One-Time Close Options

Different buyers need different financing paths. These One-Time Close options help builders serve more qualified buyers by combining construction financing and permanent mortgage financing into one loan.

FHA

FHA One-Time Close

A low down payment option for qualified buyers building a primary residence with FHA financing.

  • Minimum 650 credit score
  • As little as 3.5% down
  • Primary residence only
  • 15- or 30-year fixed-rate options
  • Site-built, manufactured, modular, and eligible panelized homes may be allowed
VA

VA One-Time Close

A strong construction financing option for eligible veterans, active-duty service members, and qualified VA buyers.

  • Minimum 650 credit score
  • Up to 100% financing for eligible VA borrowers
  • Primary residence only
  • 15- or 30-year fixed-rate options
  • Builder must provide evidence of VA approval
  • Site-built, manufactured, modular, and eligible panelized homes may be allowed
CONV

Conventional One-Time Close

A conventional construction-to-permanent option for qualified buyers building a primary residence or second home.

  • Minimum 680 credit score
  • Up to 90% LTV for eligible one-unit properties
  • Primary residence and second home options may be available
  • 15- or 30-year fixed-rate options
  • Site-built, modular, and eligible panelized homes may be allowed
  • Manufactured homes are not eligible for the Conventional option

Builder Requirements

What We Need to Get Started

Before a buyer can close, the builder and project must be reviewed and approved. This helps keep the financing, construction timeline, contract, and draw process clear from the beginning.

Start Here

Who Can Be Approved?

Builders must be full-time, licensed, in good standing, and responsible for the full turnkey completion of the home. Only one builder or contractor is allowed for the project.

01

Business Documents

  • Current year-to-date profit and loss statement
  • Previous year corporate tax return
  • Most recent corporate bank statement
  • Executive summary outlining company history and experience
02

Licensing & Insurance

  • Builder, retailer, contractor, or installer license, as applicable
  • General liability insurance certificate
  • Minimum $1,000,000 per occurrence required
  • Builder’s risk policy on the property
03

Loan-Specific Items

For VA One-Time Close loans, the builder must provide evidence of VA approval. For Conventional One-Time Close loans, the buyer, property type, construction term, and project structure must meet Conventional OTC guidelines.

04

Project Documents

  • Finalized construction contract
  • Plans, specs, and elevations
  • Plot plan
  • Cost breakdown
  • Permit information, as applicable

Helpful Note

Approval Keeps the File Moving

Having builder documents and project details ready early can help avoid delays once the buyer’s loan file moves into underwriting and construction review.

Contract Requirements

Fixed-Price Contracts Only

One-Time Close Construction Loans require a fixed-price contract. Cost-plus contracts are not allowed. The builder must be responsible for the full turnkey completion of the home, including site work and improvements.

The borrower cannot complete any portion of the construction work. This helps keep the project scope, budget, financing structure, and draw process clear from the start.

Contract Highlights

  • Fixed-price contracts required
  • Cost-plus contracts are not eligible
  • Only one builder or contractor allowed
  • Builder must provide turnkey completion
  • Borrower cannot perform construction work

Eligible Property Types

Homes That May Qualify

The property type matters when structuring a One-Time Close loan. Below is a simple overview of what may be eligible and what is not allowed under the program.

May Be Eligible

  • Site-built homes
  • Modular homes
  • Panelized homes
  • Manufactured homes may be eligible on FHA/VA only

Barndominiums

Barndominiums may be considered with restrictions. They must generally be a one-unit single-family residence, have a concrete slab foundation, and cannot be used for agricultural purposes.

Conventional OTC guidelines are more limited than FHA/VA for certain property types. Manufactured homes are not eligible under the Conventional One-Time Close option.

Not Eligible

  • Log homes
  • Bamboo homes
  • Metal homes
  • Container homes
  • Post-frame homes

Why Partner With Us

What Makes Us Different Than Working With a Local Bank

Local banks can be a great fit for some construction loans, but many structure construction financing differently. Our One-Time Close options are designed to give builders and buyers a more streamlined path from contract to completion.

01

One Closing Instead of Two

The buyer closes once before construction begins. Once the home is complete, the loan transitions into the permanent mortgage phase without a second closing.

02

FHA, VA & Conventional Options

Many construction lenders focus on one type of construction financing. Our FHA, VA, and Conventional OTC options help builders serve more qualified buyers with different down payment, eligibility, and occupancy needs.

03

Permanent Financing Set Up Upfront

The construction and permanent financing are structured together from the beginning, helping reduce uncertainty at the end of the build.

04

Structured Draw Process

Draws are handled with inspections and documentation, helping keep the project organized as work is completed.

05

Builder-Focused Support

We help builders understand approval requirements, document needs, timing, buyer expectations, and program guidelines upfront.

06

A Marketing Partner, Too

We help educate buyers and give builders a clear way to explain financing options without having to become the financing expert.

Draw Schedule Examples

How Funds Are Released During Construction

After closing, funds are released through a draw process as work is completed. Draws are not advanced upfront for materials. Inspections are required to verify progress before funds are released. Draw limits may vary by loan type and property type.

Example

Site-Built Home

Site-built homes may have up to five draws on FHA/VA and up to six draws on Conventional, including the final draw.

1
Foundation & Initial Site Work

May include site prep, grading, foundation work, and approved early-stage construction items.

2
Framing & Rough-In Progress

May include framing, roof structure, windows, exterior progress, and rough-in work for major systems.

3
Mechanical, Electrical, Plumbing & Interior Progress

May include HVAC, plumbing, electrical, insulation, drywall, and other interior progress.

4
Interior & Exterior Finishes

May include cabinets, trim, flooring, paint, exterior finishes, fixtures, and near-completion items.

5
Final Draw

Released after completion requirements are met, final inspection is completed, and conditions are satisfied.

Example

Manufactured or Modular Home

Manufactured and modular homes may have up to three draws on FHA/VA, including the final draw. Conventional may allow modular homes, but not manufactured homes.

1
Initial Closing & Site/Unit-Related Costs

Approved closing costs, land costs or payoff, and certain construction soft costs may be funded at closing.

2
Delivery, Installation & Site Progress

Funds may be released once the home has been delivered and installed, with inspection documentation and photos.

3
Final Draw

Released after completion, final inspection, and satisfaction of remaining construction-related requirements.

✓

Important Draw Note

Draw funds are generally disbursed directly to the builder or retailer. Funds are released based on completed work and verified progress, not materials purchased in advance.

★

Conventional Construction Payment Note

On Conventional One-Time Close loans, the borrower generally makes monthly interest-only payments during construction based on funds that have been disbursed. The borrower is also responsible for real estate taxes during construction.

Ready to get started?

Become an Approved Builder

Our team can help you understand the approval process, required documents, eligible property types, draw structure, and next steps for offering One-Time Close financing to your buyers.

Start Builder Approval