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VA Construction Loans


Qualify for a VA Construction loan using One Time Close with Rate Lock Protection. Designed for Builders, Borrowers and Originators.

What is VA Construction loan (OTC)?

As its name implies, a VA One-Time Close (OTC) is a Construction-to-Permanent loan program that offers all-in-one financing. Available for manufactured, modular, and stick-built homes, OTC loans allow borrowers to finance the construction of a home, lot purchase/land payoff, and permanent mortgage with just one closing.


Program highlights!

620 minimum fico credit score

VA high balance/Jumbo available up t0 4 Million

Underwriting criteria per the VA handbook 26-7


What is required for a VA One-time Close Construction Loan?

A VA One-time Close Construction Loan is mainly used to finance the building of the borrower’s home and permanent mortgage all into one individual transaction with a single closing. The borrower is going to be approved for a standard VA One-time Close Construction Loan if the borrower is already qualified for a long-term permanent conventional mortgage. Upon conclusion of construction, the borrower is going to be expected to convert from the interim construction loan right into a permanent standard fixed-rate loan. There’ll be no other closing or even closing costs required.

What are the benefits of a VA One-Time Close Construction Loan?

Faster turnaround times, low construction admin fees, and the ability to apply various down payment assistance programs through our loan program are just a few of the ways Valor Home Mortgage can help you achieve your goal of building your dream home.

You only need to qualify once. If the borrower qualifies for long-term financing, they will be eligible for a one-time close construction loan. They don’t have to qualify again for the permanent funding after completion of the home construction.

Reduces the risk for the borrower. Since borrowers don’t have to qualify twice, they significantly reduce the risk of “re-qualifying” again once the house construction has been completed.

Fixed interest rate. The interest rate on a single-close construction loan can be locked a couple of months before the actual completion of the construction. The interest rate during the construction stage is pre-determined and will convert to a pre-determined rate when they close on the loan.

Reduced closing costs. A one-time close construction loan only has one closing, so they don’t have to pay for second closing costs.

Single appraisal requirement. Two-time close transactions require two separate appraisal reports, by two different appraisers, both paid by the borrower. A single-close construction loan only requires one appraisal before closing on the final loan.

Avoid intervening liens. An intervening lien happens when the borrower gets a two-time close loan that does not convert to permanent financing and requires a second closing for the second loan. The recording of the second deed of trust to pay off the construction loan will be present. Typically, this happens when the borrower disputes with the builder about the quality of craft. The final payment is withheld, and the subcontractor doesn’t get paid. In return, the subcontractor files a “mechanics lien,” which is an intervening lien.

Why a VA Construction loan?

With VA Construction Loan, borrowers are offered numerous benefits which include, One Closing for Construction and Permanent Financing in the form of lower costs, lower risks, reduced paperwork, and increased flexibility for site-built and factory built homes.

Here’s how our home loan process works:

  • Complete our simple VA One-Time Close Loan Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs

Let us connect you with an Elite Realtor to start the process towards building your perfect home

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