One-Close Construction/Renovation Mortgage

The FHA One-Time Close Loan is a reliable, government-supported mortgage program designed for single-unit, stick-built primary homes, new manufactured housing for primary residences (excluding single-wide mobile homes), and modular homes. This loan program enables borrowers to consolidate financing for construction, lot acquisition (if needed), and the permanent loan into a single mortgage. It offers a one-time, comprehensive closing with a minimum down payment of 3.5 percent (subject to your FHA county lending limit).

What is a Single Close Construction Loan?

A single close construction loan enables you to finance both the construction of your new house and the long-term mortgage required to afford it once completed. This streamlined approach allows you to close on your home loan just once, rather than securing multiple separate loans for the property, construction, and home financing. You qualify once and go through a single appraisal, loan origination, and closing process. This not only shortens the time to build and move into your new home but also safeguards you from unexpected events in the future and prevents paying double the closing costs.

How Single Close Construction Loans Operate

Qualifying for a one-time close construction loan is as straightforward as qualifying for a standard home loan, depending on your overall financial status and risk level. Please reach out to our office for more information and pre-qualification. To help you understand the process, we have outlined the necessary steps and loan programs available.

The Financing Procedure

Contact us to determine if we can initiate the process of financing your new home construction.

1. Select a builder: Locate a trustworthy builder in your region who fulfills financing eligibility criteria, including a minimum of 3 years of residential home-building experience, at least $1 million in annual volume, and a primary focus on constructing residential homes.
   
   
2. Create a contract: We will collaborate with you to create a contract with your builder, ensuring that the home fits within your budget and establishing the cost and timeline for building and financing your home.
   
   
3. Begin the loan process: Following your review and signing of the contract, our construction underwriting team will assess it. This step, including providing the necessary documentation, usually takes just a few days.
   
   
4. Underwrite the loan: Our underwriting team will appraise and potentially approve the loan for the construction process and the permanent portion of the loan in one single step.
   
   
5. Close the loan: After a final review of all submitted financial information, including documentation of current income and financial liabilities, you can sign the paperwork to close your loan and obtain financing.
   
   
6. Initiate construction: Within 30 days of the closing date, construction on your new home will begin. Your construction team will regularly update you on your home's progress. We will oversee the construction phase, including ordering draw inspections and any state-required surveys and inspections.