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VA One-Time Close Construction Loan

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A VA One-Time Close Construction Loan is a specialized mortgage option designed for eligible Veterans, active-duty service members, and select military spouses who wish to build a custom home. This loan streamlines the financing process by combining the purchase of land, construction costs, and the permanent mortgage into a single loan with one closing. This approach eliminates the need for multiple loans and closings, reducing paperwork and potential delays

  • Single Closing: Combines land purchase, construction financing, and permanent mortgage into one loan, requiring only one set of closing costs.
  • No Down Payment: Eligible borrowers can finance up to 100% of the home's value, including land and construction costs, without a down payment.
  • Fixed Interest Rate: Lock in a fixed interest rate before construction begins, providing stability throughout the building process.
  • No Monthly Mortgage Insurance: VA loans do not require private mortgage insurance (PMI), which can result in significant monthly savings.

The VA One-Time Close Construction Loan offers a streamlined path for Veterans and service members to build their dream home while leveraging the benefits of the VA loan program. By consolidating multiple financing steps into one, borrowers can enjoy a more efficient and cost-effective home-building experience.

VA One-Time Close

A VA One-Time Close Construction Loan allows eligible Veterans to finance both the construction of a new home and the permanent VA mortgage with just one loan and a single closing. This streamlined process eliminates the need for separate construction and mortgage loans, saving time, money, and hassle. Whether you already own your land or plan to purchase it as part of the process, this loan gives you the flexibility to design and build your dream home from the ground up.

 

Unlike traditional construction loans that require a second closing to convert into a permanent mortgage, the VA One-Time Close automatically transitions to a VA-backed loan once construction is complete. That means no additional paperwork, no second round of fees, and no surprises. This loan is especially valuable for Veterans looking to lock in a fixed rate early, avoid private mortgage insurance (PMI), and take full advantage of their VA home loan benefits. It’s also ideal for those who want to build in rural or custom locations not served by traditional builder subdivisions.

 

If you’re ready to build your forever home using your VA benefits, the VA One-Time Close Construction Loan is the most efficient and cost-effective way to get started.

How to Get Started with a VA One-Time Close Construction Loan

We try to make it easy. First step is to contact us so we can listen and see what your scenario is. 

Contact Us

Reach out and discuss your homebuilding plans. Whether you're starting with land or building on your existing property, we’ll walk you through the next steps.

Get Estimates

We’ll provide customized loan estimates based on your build budget, timeline, and builder details.

Close Your Loan

Your construction loan goes to processing, underwriting then closing. Once your home is built, it converts to a VA permanent loan.

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Frequently Asked Questions?

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What is a VA Construction Loan?
 A VA construction loan allows eligible veterans to finance the construction of a new home, including purchasing land if needed. It’s a One-Time Close (OTC) loan, meaning it combines the construction financing and permanent mortgage into a single transaction.
  • No second closing is required; everything is done upfront.
  • No mortgage payments during the construction period.
  • The loan is locked at the start with no need for a second appraisal after construction.
  • Extended lock periods up to 360 days with rate float-down options.
  • Construction loans are serviced in-house, ensuring a smooth process.
  • Soft costs and interest reserves are included in the loan.
  •  Contingency funds (minimum 2%) are built into the loan to cover unexpected expenses.
 

VA construction loans can be used for:

  • Site-built, single-family detached homes.
  • Modular homes, log homes, and barndominiums.
  • Manufactured homes (multi-width only; single-width- requires an exception).
  • Homes with accessory dwelling units (ADUs) built simultaneously with the primary residence.

Ineligible properties include container homes.

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Shirley Mueller

Sr. VP of Veteran Lending

NMLS ID: 336103

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Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Recipt of application does not represent an approval for financing or interest rate gurantee. Restrictions may apply, contact CrossCountry Mortgage for current rates and for more information.

CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. 

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