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  • Writer's pictureRebecca Richardson

One Time Close Loans

Building a custom home can be a dream come true for many homeowners, but the process of obtaining financing can often be complicated and overwhelming. However, a one-time close loan can simplify the process and make building a custom home more accessible to many buyers.



A one-time close loan is a type of mortgage that allows borrowers to finance the construction of their new home as well as the permanent financing once the construction is complete. This type of loan eliminates the need for a separate construction loan and permanent financing, which can be both costly and time-consuming.


Here are some guidelines of how the program works:

Conventional Loans: One-time close loans are available on 15- and 30-year fixed conventional, high balance, and 7- and 10-year ARM options. These loans can be used for primary, second, and investment property purchases, as well as rate/term refinances. The loan amounts can go up to the conforming loan limits, and borrowers need to have a minimum FICO score of 700 and can finance up to 95% LTV.


The loan is DU eligible, meaning that it's approved through Fannie Mae's Desktop Underwriter program. The maximum build period is 11 months with a 1-month modification period. Interest-only monthly payments are made during the build period.


VA Loans: One-time close loans are also available on VA loans for primary home purchases and cash-out refinances. The loan amounts can go up to $4 million, and borrowers need to have a minimum FICO score of 620 and can finance up to 100% LTV.


The loan is DU eligible and has the same maximum build period of 11 months with a 1-month modification period. However, the build period is deducted from the loan term, and no monthly payments are required during the build period.


One-time close loans are ideal for borrowers who want to build a custom home but don't want to deal with the hassle of obtaining separate construction and permanent financing. The loan provides a convenient and cost-effective solution for financing a new home build.

To apply for a one-time close loan, borrowers need to work with an approved lender. The lender can help guide them through the application process and ensure that they meet the eligibility requirements.


In conclusion, a one-time close loan can be a great option for those who want to build a custom home. It simplifies the financing process and provides a convenient solution for obtaining both construction and permanent financing in one loan. Consider speaking to an approved lender to learn more about this loan option and how it can help you achieve your dream of building a custom home.

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