The Built Mortgage Team, Powered by Motion Mortgage Inc.
FHA One-Time Close Construction Loans
Build a primary residence with construction and permanent FHA financing in one closing. Eligible borrowers may qualify with 3.5% minimum down and a 580 minimum credit score through our lender, subject to full underwriting and borrower, builder, property and lender review.
Minimum down payment for eligible borrowers
Minimum credit score, subject to full underwriting
Closing; completion conditions apply
What is an FHA One-Time Close loan?
One closing covers the construction financing and permanent FHA mortgage. There is no second closing or re-qualification closing after the build. Funds are released through lender-controlled draws with inspections, and lender completion conditions still apply before the permanent phase. The program is available in Virginia, Maryland, North Carolina, Florida and Washington, DC, subject to lender and borrower eligibility.
FHA One-Time Close requirements
- Down payment: 3.5% minimum for eligible borrowers.
- Credit: 580 minimum through our lender, subject to full underwriting.
- Occupancy: Primary residence.
- Mortgage insurance: Upfront MIP currently 1.75% of the base loan amount, which may be financed, plus an annual premium paid monthly.
- Loan amount: County FHA limits apply and change annually. Check HUD’s FHA county loan limits.
- Builder: Reviewed and approved by the lender; do not assume an owner-builder can participate.
All financing is subject to borrower, builder, property and lender review.
Eligible home types
- Site-built (stick-built)
- Modular
- Manufactured
Every home is subject to appraisal, FHA property standards and lender review. Eligible land purchase may be combined with construction; if you already own land, discuss how it is treated with the lender.
How it works
1
Pre-approval
Discuss income, credit and borrower qualifications. The lender’s 580 minimum credit score and 3.5% minimum down payment remain subject to full underwriting.
2
Land, builder & plans
Review the proposed land, lender-approved builder, plans and budget. Eligible land purchase may be combined; already-owned land is reviewed with the lender.
3
Appraisal & underwriting
The lender reviews the borrower, builder and property, including the appraisal, FHA property standards and applicable county FHA loan limits.
4
Single closing
One closing covers construction and the permanent FHA mortgage; no second or re-qualification closing is required after the build.
5
Draws & inspections
Funds are released through lender-controlled construction draws with inspections.
6
Permanent FHA mortgage
The permanent phase begins after the lender’s completion conditions are satisfied.
FHA vs VA vs Conventional one-time close
| Consideration | FHA | VA | Conventional |
|---|---|---|---|
| Eligibility | Eligible borrowers; full underwriting applies | VA entitlement and borrower, builder and property review | Eligible borrowers; full underwriting applies |
| Minimum down payment | 3.5% for eligible borrowers | Potential $0 for eligible veterans; entitlement, appraisal and lender review apply | 5% minimum for eligible borrowers; varies by occupancy |
| Minimum credit score | 580 through our lender; full underwriting | 600 through our lender; full underwriting | 620 through our lender; full underwriting |
| Loan amount | County FHA limits | Up to $4,000,000 through our lender; entitlement, appraisal and lender review | County conforming limits; no jumbo |
| Mortgage insurance | Upfront FHA MIP plus an annual premium paid monthly | No monthly mortgage insurance; funding fee may apply and may be financed; exempt borrowers pay no fee | Program-dependent; may apply with lower down payments |
| Occupancy | Primary residence | Primary residence | Primary residences, second homes and investment properties, subject to program requirements |
| Who it fits | Eligible borrowers seeking low-down-payment financing | VA-eligible borrowers building a primary residence | Borrowers evaluating a separate lender-specific construction program |
Compare all construction financing programs with the team, including VA and Conventional program details. Eligibility and lender completion conditions apply.
FHA Construction Loan Questions
Discuss Your FHA Construction Project
Tell the Built Mortgage Team about your land, home and builder. Financing remains subject to borrower, builder, property and lender review.