October 8, 2024

Custom Home Building Solutions in California

land loan

Building a home from scratch can be a daunting task, but it doesn’t have to be. With a one time close construction loan, you can simplify the process by combining construction and permanent financing into one easy loan. At Hernandez Family Construction, we specialize in helping homeowners like you build the home of your dreams while securing the best financing options available, including FHA, VA, and USDA one time close construction loans.

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What is a One Time Close Construction Loan?

A one time close construction loan is a single loan that covers both the construction phase and the permanent mortgage for your new home. Unlike traditional construction loans, which require two separate closings (one for construction financing and one for the permanent mortgage), a one-time close loan bundles everything into a single transaction. This means:

One loan, one closing: Save time and money by avoiding two separate loans and closing processes.
Locked-in interest rates: Secure your interest rate from the beginning, protecting you from potential rate hikes during the construction phase.
Simplified process: Enjoy a streamlined approach that combines construction and permanent financing into one easy package.

Hernandez Family Construction partners with top one time close construction loan lenders to make this process as seamless as possible for you.

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Benefits of One Time Close Construction Loans

Choosing a one time close construction loan offers several key benefits, including:

Cost savings: With one closing, you avoid paying double closing costs, which can add up to significant savings.
Less hassle: One loan approval process means less paperwork and a smoother experience.
Better budgeting: Because both the construction loan and permanent mortgage are combined, you know your total costs upfront, allowing for easier budgeting throughout the process.

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At Hernandez Family Construction, we guide you through every step, ensuring you get the most out of your one-time close loan and your home build.

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FHA One Time Close Construction Loan

For first-time homebuyers or those with less-than-perfect credit, the FHA one time close construction loan is a great option. This loan is insured by the Federal Housing Administration (FHA), making it accessible to more people.

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Key benefits include:

Low down payment: FHA loans generally require as little as 3.5% down, making homebuilding more affordable.
Lower credit score requirements: With more lenient credit requirements, borrowers with lower credit scores can still qualify.
Flexible terms: Whether you’re building a starter home or a more custom property, the FHA one time close loan provides flexibility in your financing.

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At Hernandez Family Construction, we’ve worked with many homeowners to secure FHA one time close construction loans, helping them turn their dream homes into reality.

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VA One Time Close Construction Loan

The VA one time close construction loan is specifically designed for veterans, active-duty service members, and eligible surviving spouses. If you’ve served in the military, this loan offers you unique benefits to make home construction more affordable and accessible.

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Key benefits include:

No down payment: One of the biggest advantages of a VA loan is the option for 100% financing, meaning no down payment is required.
No private mortgage insurance (PMI): With a VA loan, you won’t have to pay PMI, reducing your overall costs.
Competitive interest rates: VA loans often come with lower interest rates than conventional loans, helping you save money over the life of your loan.

Hernandez Family Construction is proud to help veterans and service members take advantage of the VA one time close construction loan. We work with you to ensure your service to the country is rewarded with a smooth, affordable home building process.

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USDA One Time Close Construction Loan

For those building in rural areas, the USDA one time close construction loan offers a fantastic opportunity to finance your home with no down payment. This loan is backed by the U.S. Department of Agriculture (USDA) and is available to low- and moderate-income borrowers in eligible rural locations.

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Key benefits include:

No down payment: Like the VA loan, the USDA loan allows for 100% financing, which is ideal for budget-conscious borrowers.
Low interest rates: USDA loans often feature competitive interest rates, making monthly payments more affordable.
Rural focus: This loan is tailored for those looking to build in rural or semi-rural areas, offering financing options in locations that traditional loans may overlook.

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At Hernandez Family Construction, we’ve helped many clients secure USDA one time close construction loans and build their dream homes in peaceful, rural communities.

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Comparing One-Time Close Construction Loans: FHA, VA, and USDA Options

When considering a one time close construction loan, it’s essential to understand the different options available to meet your specific needs. While the basic concept of a one-time close construction loan simplifies the financing process by combining the construction and permanent mortgage into a single loan, there are various programs tailored to different borrower profiles. FHA, VA, and USDA offer government-backed one-time close loans with unique benefits and requirements.

Below is a comparison table that highlights the key differences between the One-Time Close Construction Loan and the FHA, VA, and USDA One-Time Close Construction Loans to help you make an informed decision.

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Loan Type	Down Payment	Eligibility	Credit Score Requirement	Private Mortgage Insurance (PMI)	Target Borrowers	Other Benefits
One-Time Close Construction Loan	Varies (typically 5%-20%)	General borrowers (varies by lender)	Typically 620 or higher	Yes (if down payment is less than 20%)	Anyone looking to combine construction and permanent loans	Simplified process, single closing, protects against interest rate hikes.
FHA One-Time Close Construction Loan	3.5%	U.S. citizens and permanent residents	Typically 580 or higher	Yes (for the life of the loan)	First-time homebuyers, those with lower credit scores or limited down payments	Easier approval for borrowers with less-than-perfect credit, government-backed security.
VA One-Time Close Construction Loan	0% (No down payment required)	Veterans, active-duty military, and eligible surviving spouses	Typically 620 or higher	No	Veterans, service members, and their families	No down payment, no PMI, competitive interest rates.
USDA One-Time Close Construction Loan	0% (No down payment required)	Low- to moderate-income borrowers in eligible rural areas	Typically 640 or higher	Yes (if down payment is less than 20%)	Rural area homebuilders with limited income	No down payment, affordable interest rates, supports rural development.

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How Hernandez Family Construction Simplifies the Process

When you partner with Hernandez Family Construction, you’re choosing a company that understands both the construction process and the ins and outs of financing. We work closely with one-time close construction loan lenders to ensure your loan is approved quickly and efficiently so you can focus on the exciting parts—designing and building your new home.

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Our team guides you through each step:

Prequalification: We help you determine your eligibility for FHA, VA, or USDA one-time close construction loans.
Loan application: We assist in gathering necessary documentation and submitting your application to trusted lenders.
Loan approval: Our long-standing relationships with lenders ensure smooth and fast approvals.
Construction: Once the loan is approved, we manage the construction process, keeping you informed every step of the way.

With Hernandez Family Construction, you’re not just getting a loan—you’re gaining a partner who is committed to making your homebuilding journey stress-free.

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Choosing the Right One-Time Close Loan for You

Which loan is right for you? Here’s a quick comparison to help:

FHA one-time close construction loan: Best for first-time buyers or those with lower credit scores.
VA one-time close construction loan: Ideal for veterans or active-duty military members who qualify for VA benefits.
USDA one-time close construction loan: Perfect for low- to moderate-income borrowers building in rural areas.

Our team at Hernandez Family Construction is here to help you evaluate your options and choose the loan that fits your needs and budget.

Steps to Apply for a One-Time Close Construction Loan

If you’re ready to get started, here’s how the process works:

Prequalify: Contact Hernandez Family Construction to determine your eligibility for an FHA, VA, or USDA one-time close construction loan.
Submit your documents: Gather necessary financial documents, including income verification, credit history, and proof of eligibility for VA or USDA loans if applicable.
Get approved: Work with our team to secure loan approval through trusted one-time close construction loan lenders.
Start building: Once your loan is approved, the construction of your dream home begins, and Hernandez Family Construction will handle all the details from start to finish.

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Conclusion

A one time close construction loan is the easiest, most cost-effective way to finance the construction of your new home. Whether you’re a first-time homebuyer, a veteran, or looking to build in a rural area, Hernandez Family Construction is here to guide you through the process and deliver the home of your dreams. Reach out today to explore your options and start building your future!

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Building a home from scratch can be a daunting task, but it doesn’t have to be. With a one time close construction loan, you can simplify the process by combining construction and permanent financing into one easy loan.