The FHA and VA One-Time Close loans are construction-to-permanent mortgages, both of which are important options to consider if starting with a brand-new home is the direction you are heading. The One-Time Close program allows qualified borrowers in Texas to use a single closing to finance both the construction of the house and the permanent financing. The cost of the land can also be financed if you do not already own it. But if you do, lot equity can be rolled in. Even if you have a lien against the lot, it will be paid off and added to the new note. Zillow® periodically tracks housing trends and has shown residential growth in many areas in the state that should continue into the near future. The fastest growing Texas cities include Austin, Cedar Park, Conroe, Denton, Frisco, Ft. Worth, Georgetown, Houston and Leander. Many people in these cities are choosing to build their own homes rather than shopping around when there is not much to choose from.
What Does it Take to Qualify?
- Down payments for eligible veterans are not required. $0 down payment loans up to $1,500,000 may be available.
- Down payments for FHA borrowers are as low as 3.5%. Lending limits for most Texas counties will max out at $420,680, but some go as high as $483,000.
- You will need to verify two years of consistent employment.
- A "middle score" from the 3 credit bureaus of 620 or better is needed.
- The debt-to-income ratio measures your housing and long-term debt against your income. It should not exceed 41% - 43% and varies from one government agency to another.
Acceptable Property Types
You can finance your stick-built, modular, or double-wide manufactured housing with a One-Time Close loan in any of the 254 counties in Texas. Keep in mind that this construction lending program can only be used for single family homes, but not for duplexes, triplexes, or fourplexes. Investor properties are not allowed, and you cannot function as your own builder.
A key advantage of the One-Time Close loan program is that borrowers will only experience one mortgage application, one mortgage approval, and a single closing date. Compare that with more traditional products that feature two of each along with a more complicated process. When construction of your home is complete there will not be a new borrower requalification or a recertification of the property value. And until that point, debt payments will not begin.
If you are looking for a home that fits your family, lifestyle, and future needs, building might be a better plan than buying. Do yourself a favor and consider this option before you make one of the most important decisions in your life.
Want More Information About One-Time Close Loans?
We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to info@onetimeclose.com which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you.
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,000,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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