VA One-Time Close construction loan
A VA one-time close construction loan uses one closing for the construction financing and the permanent mortgage. You do not close once to build and again when the house is finished.
A private lender makes the loan. The U.S. Department of Veterans Affairs may guarantee part of it if you are eligible. The VA does not make the loan, and the VA does not endorse First Lending Solutions.
Who it is for
It is for an eligible borrower who is building a primary home and wants the construction financing and the long-term mortgage in that single closing. Many veterans, people on active duty, members of the Reserve and National Guard, and some surviving spouses can ask about it. With us, VA loans start at a 580 credit score. That minimum is our requirement. Your Certificate of Eligibility shows whether you meet the service requirements and how much entitlement you have. Entitlement is not an approval. Credit, income, the plans, the builder, and the property are still reviewed. We can review a VA file by hand when the guidelines call for it.
Most borrowers pay a VA funding fee. The fee depends on the loan, whether you have used the benefit before, and any cash you bring. Some veterans with a service-connected disability are exempt. The Certificate of Eligibility shows that. This page does not state the fee.
See also the FHA One-Time Close construction loan and the conventional One-Time Close construction loan.
Steps
- Talk with a loan officer about your Certificate of Eligibility, the lot, the plans, and the builder.
- Apply, and share the plans for review.
- Close once. That closing covers construction and the permanent mortgage.
- The builder is paid in draws as completed work is inspected. The home has to meet the VA minimum property requirements.
- When the home is finished, the loan continues as the permanent mortgage.
1st Lending Solutions, Inc. DBA First Lending Solutions. NMLS #135932 (www.nmlsconsumeraccess.org). Licensed by the California Department of Real Estate (#01482431) and by the DFPI under the California Financing Law (No. 60DBO96452). Equal Housing Opportunity. This is not a commitment to lend. Approval is required.
Questions
Does the VA make this loan?
No. A private lender makes the loan. The Department of Veterans Affairs may guarantee part of it if you are eligible. The VA does not endorse First Lending Solutions.
What does one-time close mean?
You close once. That closing covers the money used while the home is built and the mortgage that remains after the home is finished.
Who can ask about it?
Many veterans, people on active duty, members of the Reserve and National Guard, and some surviving spouses. A Certificate of Eligibility shows whether you meet the service requirements. It is not a loan approval.