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FHA One-Time Close Construction Loan: Build and Finance in a Single Closing
An FHA one-time close loan combines your construction financing and permanent mortgage into one closing, with a down payment as low as 3.5%.
An FHA one-time close (construction-to-permanent) loan lets a qualified borrower finance land, construction, and the permanent mortgage in a single closing rather than two. The loan converts automatically to a standard FHA mortgage once construction is complete. Down payment can be as low as 3.5%, and the builder must be FHA-approved and properly licensed.
- ✓One-time close combines the construction loan and the permanent FHA mortgage into a single closing.
- ✓Down payment can be as low as 3.5% of the total acquisition and construction cost, subject to credit qualification.
- ✓The builder must be licensed, insured, and meet FHA eligibility requirements.
- ✓Construction draws are released in stages as work is inspected and completed.
- ✓The loan automatically converts to permanent financing at the standard FHA rate locked at closing.
What this means for you: you close once, lock your terms upfront, and avoid a second qualification and closing when the home is finished.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
What a one-time close construction loan solves
Traditional new-construction financing often requires two closings: a short-term construction loan, followed by a full refinance into permanent financing once the home is built. Each closing brings its own costs, a fresh credit pull, and rate risk if market pricing moves between the two events. FHA's one-time close (also called construction-to-permanent) structure combines both into a single closing, with a single approval and a single set of closing costs.
How the structure works
You are approved once, for the full amount needed to buy or already own the lot, fund construction, and finance the permanent mortgage. Funds are held in an interest-reserve or draw account and released to the builder at defined construction milestones after inspections confirm the work. Once the home receives its certificate of occupancy and final inspection, the loan converts automatically into a standard FHA fixed-rate mortgage without a second closing or new underwriting decision.
Down payment and credit requirements
The 3.5% minimum down payment applies at 580+ FICO, consistent with standard FHA purchase guidelines; 500-579 FICO generally requires 10% down. Because construction lending carries more project risk than buying an existing home, lenders commonly apply additional overlays on reserves, contingency funds, and builder documentation on top of FHA's baseline rules.
Builder requirements
The general contractor must be properly licensed and insured in the state where the home is built, and must typically be approved through the lender's builder-review process, which looks at financial standing, experience, and references. Owner-builders (acting as your own general contractor) are rarely permitted on FHA one-time close loans due to the added risk.
The draw and inspection process
Construction funds are not handed over in a lump sum. They are released in stages tied to a draw schedule (for example: foundation, framing, mechanicals, drywall, final) after a third-party inspector confirms each phase is complete. This protects both the borrower and the lender against paying for unfinished or defective work.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Rate lock considerations
Some one-time close programs lock your permanent rate at the initial closing, while others set the permanent rate closer to the conversion date depending on the lender's specific program design. Ask specifically how and when your rate is determined before you sign, since this materially affects your risk if market rates move during a multi-month build.
What happens if construction runs long
Construction delays are common. Programs typically build a contingency period into the construction timeline and may require documented extensions if the project runs past the agreed schedule. Significant overruns can affect your interest-reserve funding and require additional underwriting review.
How Simply Approved Mortgages helps
We help you evaluate whether a one-time close loan or a separate construction loan followed by a refinance makes more sense for your specific builder, timeline, and budget, and we coordinate builder approval documentation early so it does not slow down your closing date.
Figures on this page are illustrative and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate. We are a mortgage broker and are not affiliated with or endorsed by HUD or FHA.
How an FHA one-time-close construction loan is structured
A one-time-close construction loan combines the construction financing and the permanent mortgage into a single closing and a single set of loan documents, rather than requiring a separate construction loan followed by a refinance.
| What it is | How it actually works | Published by |
|---|---|---|
| Single closing, single set of terms | FHA’s Construction-to-Permanent program allows one closing that converts to the permanent FHA-insured mortgage upon completion, avoiding a second qualification and closing event. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Builder requirements | The builder must be approved and typically must provide a valid state license, proof of insurance, and complete construction documentation acceptable to the lender. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Site requirements | The borrower must have or be acquiring the lot, either owned free and clear, under contract, or financed as part of the transaction, and the property must meet FHA minimum property standards once complete. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Loan-to-value basis | The maximum loan amount is calculated using standard FHA loan-to-value guidelines applied to the lesser of the appraised as-completed value or the acquisition cost (cost of land plus construction). | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Draw disbursement | Construction funds are disbursed in draws tied to completed stages of construction, verified by inspections, rather than paid to the builder up front. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Interest reserve during construction | Some programs allow financing an interest reserve to cover interest-only payments during the construction period so the borrower is not carrying two payments. | Lender program guidelines (vary by investor) |
| Mortgage insurance premium | Once converted to the permanent phase, the loan carries FHA’s standard upfront and annual mortgage insurance premium structure like any other FHA-insured mortgage. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Completion timeline | Construction generally must be completed within a defined period from closing, monitored through inspections at each draw and a final inspection before conversion to permanent financing. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
Program parameters above are published by the agencies and enterprises named in the right-hand column and can change. They describe program rules, not an offer; eligibility, terms, conditions, and availability vary by borrower, property, lender, loan program, and state, and all loans are subject to lender underwriting and approval.
Why "one-time close" is the entire value proposition
Traditional new construction financing often requires two transactions: a short-term construction loan while the home is being built, then a refinance into permanent financing once it is done. That structure means qualifying twice, paying two sets of closing costs, and carrying the risk that the borrower’s financial picture or the rate environment shifts unfavorably between the two closings. FHA’s one-time-close structure collapses that into a single closing: the borrower qualifies once, signs one set of permanent loan documents up front, and the loan automatically converts from the construction phase to the permanent phase upon completion, without a second underwriting event or a second set of closing costs.
Check where pricing sits before you decide
Review current rate context, then start a request so your own credit, income, and property details drive the numbers. Illustrative only — not a quote or commitment to lend.
Why the builder is underwritten almost as heavily as the borrower
Because the collateral does not exist yet, the lender’s risk is concentrated in whether the builder actually finishes the home to the contracted specifications, on budget, and within the required timeline. That is why builder approval — license verification, insurance, financial capacity, and a track record acceptable to the lender — is treated as a first-order underwriting item rather than a formality. A qualified borrower paired with an unapproved or thinly-documented builder is not a financeable file under this program; the builder has to clear its own review before construction financing is released against their work.
How the draw schedule protects both the lender and the borrower
Construction funds are not handed to the builder as a lump sum. They are released in stages — foundation, framing, mechanical rough-in, and so on — with an inspection confirming each stage is complete before the next draw is funded. This protects the lender against paying for work that was never done, but it equally protects the borrower against a builder who is paid in full early and loses the incentive to finish. Borrowers should expect to see and understand the draw schedule before closing, not simply take the builder’s payment timeline at face value.
Documentation this program requires beyond a standard FHA purchase
Construction financing adds land, builder, and plan documentation on top of standard FHA income and credit review.
| Type of income or evidence | How it is documented | Why it works for this product |
|---|---|---|
| Standard FHA income and credit documentation | Same as a standard FHA purchase: pay history, tax returns where applicable, and credit review. | The construction feature changes the collateral and disbursement method, not the base FHA qualification standard. |
| Approved builder documentation | Builder license, insurance certificates, financial statements, and a signed construction contract. | The lender is underwriting the builder’s capacity to complete the project, not just the borrower. |
| Plans and specifications | Complete architectural plans and a detailed specification list submitted for appraisal and underwriting review. | Drives the as-completed appraisal that determines the maximum loan amount. |
| Site and land documentation | Deed, purchase contract, or existing mortgage payoff for the lot, plus a survey. | Confirms clear ownership or acquisition of the site the home will be built on. |
Documentation requirements vary by lender, program, and file. The list above describes what underwriting commonly accepts, not a determination about your income or your approval.
One-time-close construction versus a separate construction loan and refinance
The alternative to a one-time-close structure is financing construction and the permanent mortgage as two separate transactions.
| Option | Usually the better choice when | What you give up |
|---|---|---|
| FHA one-time-close construction-to-permanent | You want a single closing, a single qualification, and cost certainty going in. | Requires an FHA-approved builder and completion within the program’s timeline. |
| Separate construction loan, then refinance | You want flexibility to shop the permanent loan separately once the home is complete. | Two closings, two sets of costs, and re-qualification risk at the refinance stage. |
| Conventional construction-to-permanent financing | You do not need or want FHA mortgage insurance and otherwise qualify conventionally. | Typically requires stronger credit and a larger down payment than FHA financing. |
A worked example: sizing an FHA construction-to-permanent loan
Illustrative only. Not a quote, lock, offer, or commitment to lend; figures are round numbers used to show the method, and binding figures appear on your Loan Estimate.
A borrower owns a lot valued at $60,000 free and clear and contracts with an approved builder for $260,000 of construction, for a total acquisition cost of $320,000. An appraisal based on the plans and specifications supports an as-completed value of $335,000. The maximum FHA loan amount is generally calculated from standard FHA loan-to-value guidelines applied to the lesser of the as-completed value and the acquisition cost — here, the $320,000 acquisition cost — not the higher appraised value.
Illustrative only. Figures are examples used to show the arithmetic and are not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate.
Get a written summary of your options
Tell us the scenario you are working on and a Simply Approved Mortgages Loan Officer reviews it against real program guidelines, with no obligation.
How this applies in Florida and Colorado
Florida. In Florida, plans and specifications for new construction should reflect current wind-borne debris and wind-mitigation building code requirements, since compliance affects both the certificate of occupancy timeline and the homeowners insurance premium the borrower will carry once the loan converts to permanent financing.
Colorado. In Colorado, new construction at higher elevations should account for snow-load design requirements and local building department permitting and inspection scheduling, both of which can affect the construction timeline that the program’s completion deadline is measured against.
Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado, so the two applications above are the ones we can act on for a consumer file. Business-purpose loan products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
How an FHA one-time-close construction loan moves from application to move-in
The land, builder, and plans all have to be in place before the single closing can occur.
- Confirm site control. Own the lot, have it under contract, or plan to finance it as part of the transaction.
- Select and document an approved builder. Confirm licensing, insurance, and financial capacity meet program requirements.
- Finalize plans and specifications. Complete architectural plans and a detailed spec list for appraisal and underwriting.
- Get pre-approved and order the as-completed appraisal. The appraisal is based on the plans, not an existing structure.
- Close once on the full construction-to-permanent loan. Sign the permanent loan documents at the single closing.
- Manage the draw schedule during construction. Disbursements release against inspected, completed stages.
- Complete final inspection and convert to permanent financing. Once construction is complete and inspected, the loan converts to its permanent amortizing terms automatically.
Mistakes that cost people money on this
- Selecting a builder who is not approved or cannot document licensing and insurance.
- Submitting incomplete plans and specifications that slow the as-completed appraisal.
- Not confirming site control (ownership or contract) before beginning the loan process.
- Underestimating local permitting and inspection timelines against the program’s completion deadline.
- Assuming the loan is sized against the appraised value rather than the lesser of value or acquisition cost.
- Failing to plan for an interest reserve and assuming no payment is due during construction without confirming that with the lender.
Is this the right move for your situation?
The honest answer depends on the file. These are the patterns we see on both sides.
Usually a good fit when
- You want to build a home and prefer one closing over a construction loan followed by a refinance.
- You have or can secure site control and a builder who meets FHA approval requirements.
Usually not the right move when
- Your preferred builder is not willing to complete the FHA approval documentation.
- You want the flexibility to shop permanent financing separately once the home is built.
None of this is a determination about your file. A Simply Approved Mortgages Loan Officer can run your actual numbers and show you what your disclosures would say.
What you can do with this loan
Building a custom home on land you own or are purchasing.
Financing a new modular or stick-built home with one closing.
Avoiding a second qualification and closing after construction completes.
Locking construction and permanent financing terms together upfront.
Coordinating builder draws through a structured, inspected payment schedule.
Pros & cons — honest tradeoffs
Pros — Pros & cons
- +Only one closing and one set of closing costs for the entire project.
- +Down payment as low as 3.5% at 580+ FICO, consistent with standard FHA purchase rules.
- +No second underwriting decision required once construction finishes.
- +Draw inspections protect you from paying for incomplete or defective work.
- +The permanent mortgage terms can be set before construction even starts, depending on the program.
Cons / watch-outs — Pros & cons
- −Builder approval requirements add documentation and time before closing.
- −Owner-builders are rarely eligible; you generally need a licensed general contractor.
- −Construction delays can complicate the interest-reserve budget and timeline.
- −Fewer lenders offer true one-time close FHA construction financing compared with standard purchase loans.
- −Rate-lock mechanics vary by program and must be confirmed in writing before you commit.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Worked example
How this loan actually works — a full example
A borrower owns a lot outright and plans a $340,000 new-construction build with a 580+ FICO score and 3.5% down on the total acquisition and construction cost.
Inputs
- Total construction cost
- $340,000
- Lot value (owned free and clear)
- $60,000 credited as equity
- Minimum down payment (3.5%)
- Approximately $11,900
- Builder
- Licensed, insured, lender-approved general contractor
Calculation
- 1Initial closingConstruction and permanent financing approved together
- 2Draw 1 — foundation completeInspected, funds released
- 3Draw 2 — framing and mechanicalsInspected, funds released
- 4Final draw — certificate of occupancyLoan converts to permanent FHA mortgage
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
One closing, not two
Construction and permanent financing are combined into a single closing and approval.
3.5% down at 580+ FICO
Standard FHA down payment rules apply to the combined loan amount.
Draws tied to inspections
Funds release in stages only after third-party inspections confirm completed work.
Document Checklist for FHA One-Time Close Construction Loan
Gathering these documents up front helps your Simply Approved Mortgages Loan Officer issue a stronger pre-approval and move FHA One-Time Close Construction Loan to Clear-to-Close faster. Actual items required vary by scenario — your loan officer will confirm the final list.
Only the income documents that apply to you are shown. Switch tabs if you have multiple income sources — your loan officer will confirm which apply.
W-2 / Employed Income
- ✓Most recent 30 days of paystubs (all borrowers, all jobs)
- ✓W-2s for the last 2 years (all employers)
- ✓Two-year employment history with employer names, addresses, and dates
- ✓Verification of Employment — written (WVOE) or electronic (EVOE through a third-party payroll service); your loan officer orders it with your signed authorization
- ✓Employment reverification within 10 days before closing — verbal or electronic, required on every file
- ✓Bonus / commission / overtime: 2-year history if used to qualify
- ✓Recent job change: offer letter and first paystub after start date
- ✓Retirees / fixed income: Social Security award letter, pension statements, 1099-R
Assets & Reserves
- ✓Most recent 2 months of bank statements (all pages)
- ✓Most recent quarterly statement for retirement / brokerage / 401(k)
- ✓Gift funds: signed gift letter + donor bank statement + transfer proof
- ✓Large deposit letters of explanation with source documentation
Identity & Residency
- ✓Government-issued photo ID (driver's license or passport)
- ✓Social Security card or ITIN letter
- ✓Two years of residency history with addresses
Credit & Liabilities
- ✓Written credit report authorization
- ✓Letter of explanation for any late payments, collections, or inquiries
- ✓Bankruptcy discharge papers or foreclosure documentation (if applicable)
- ✓Child support / alimony order (if paying or receiving)
- ✓Divorce decree / separation agreement (only if applicable)
Property & Purchase
- ✓Fully executed purchase contract with all addenda
- ✓Earnest money deposit receipt + source of funds
- ✓Homeowners insurance quote (binder before closing)
- ✓HOA / condo questionnaire and dues statement (if applicable)
FHA-Specific Documentation
- ✓FHA case number assignment (ordered by your loan officer)
- ✓CAIVRS clearance authorization
- ✓For DPA: down payment assistance program application + subordination docs
- ✓For non-occupying co-borrower: proof of relationship
- ✓For manufactured home: HUD tags, foundation certification, land title
Educational checklist only. Not a commitment to lend and not a complete list of conditions. Documentation requirements are governed by agency guidelines (Fannie Mae Selling Guide, FHA Handbook 4000.1 incl. Update 18 (August 12, 2026), VA Lender's Handbook, USDA HB-1-3555) and individual investor overlays. Your Simply Approved Mortgages Loan Officer will provide your specific document list based on your scenario.
Credit Reports and Credit Monitoring for FHA One-Time Close Construction Loan
Credit is one of the four underwriting buckets every lender reviews — and one of the few you can actively improve before you apply. Monitoring your credit throughout the process helps you catch errors, fraud, and score changes early, which protects your approval timeline and your rate.
Ordering Credit for Your Pre-Approval File
Once you sign your loan application (Form 1003) and disclosures, your Simply Approved Mortgages Loan Officer orders a tri-merge residential mortgage credit report (RMCR) from Equifax, Experian, and TransUnion. This is a hard inquiry, but FICO's model treats mortgage inquiries within a 45-day window as a single event, so shopping lenders during that window will not stack on your score.
- What we need from you: signed borrower authorization, government-issued photo ID, Social Security number (or ITIN), and current address.
- What the report shows underwriters: middle FICO score, open tradelines, minimum payments, late history, collections, public records, and recent inquiries.
- How long it's valid: 120 days for conventional loans and for FHA/VA/USDA (HUD guidelines, VA Lender's Handbook Ch. 4). Older reports must be re-pulled before closing.
- Rapid rescore: if a legitimate error is on your report, we can request a rapid rescore in 3–7 business days after you supply documentation from the creditor.
This link redirects to our third-party credit vendor's payment portal. You pay the report fee directly so we can pull your tri-merge credit report for your pre-approval file. A credit pull is required for underwriting; this is not a commitment to lend.
Review and Monitor Your Credit at MyITINCredit.com
Before we pull your file, review and monitor your credit at MyITINCredit.com. Their $1 promotional trial gives you tri-bureau visibility plus ongoing credit monitoring so you can catch changes, disputes, or new accounts as they appear — not after they've already delayed your loan.
- Verify accuracy: confirm names, addresses, SSN/ITIN, and every open account belong to you.
- Dispute errors: the Fair Credit Reporting Act gives you the right to dispute inaccurate items directly with the bureau — no charge.
- Address collections and charge-offs: a settled or paid collection can be documented in advance so it does not stall underwriting.
- Pay down utilization: credit-card balances reported below 30% of the limit typically produce the strongest scores.
- Avoid new credit: do not open new cards, finance a car, or co-sign for anyone from now through closing.
- Monitor continuously: credit monitoring alerts you to new inquiries, balance changes, and potential identity theft while your loan is in process.
MyITINCredit.com is a service operated by Simply Approved Corporation (a DBA of that entity), which is the parent company of Simply Approved Mortgages LLC. Simply Approved Mortgages may receive subscription revenue if you choose to enroll. Credit monitoring through MyITINCredit.com is optional and is not required to apply for or obtain a mortgage with us. Promotional pricing, trial terms, and monitoring features are set by MyITINCredit.com and subject to change.
Why credit monitoring matters during a mortgage — A single new collection, missed payment, or unauthorized inquiry can change your qualifying score or trigger additional underwriting conditions. Typical minimum scores* — Conventional 620, FHA 580 (3.5% down) or 500 (10% down), VA no HUD minimum (most lenders 580–620), USDA typically 640, Jumbo 680–740, Doctor Mortgage 680–700+, Non-QM/DSCR varies by program, ITIN 620–680 alternative credit. Investor and lender overlays apply; individual results vary. Not a commitment to lend.
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
FHA one-time close construction loan FAQs
Answers to the most common FHA one-time close construction loan questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Sources & Citations
- HUD Handbook 4000.1 — Single Family Housing Policy Handbook — FHA underwriting, documentation, and property policy cited in this page.
- U.S. Department of Housing and Urban Development — FHA Construction-to-Permanent financing — Handbook 4000.1 construction-to-permanent guidance.
- U.S. Department of Housing and Urban Development — FHA minimum property standards
- Consumer Financial Protection Bureau — CFPB: construction loans overview
- U.S. Department of Housing and Urban Development — HUD single family housing programs
Sources: government and agency publications listed above. Simply Approved Mortgages LLC is not affiliated with, endorsed by, or sponsored by HUD, FHA, VA, USDA, or any government agency. Program rules change; the published source text governs.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the FHA lending library
This page sits inside our FHA lending coverage.
What most readers open next
- How FHA mortgage insurance worksBecause upfront and annual MIP change the monthly payment and how long it lasts.
- FHA credit score requirementsBecause the score band drives the minimum down payment.
- The FHA debt-to-income toolBecause to see how your existing payments affect the loan amount.
- The FHA cash-to-close estimatorBecause to separate down payment from closing costs and prepaids.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
FHA Loans
Base FHA program requirements and credit guidelines.
Read the guide →Guide
FHA 203(k) Renovation Loan
An alternative for renovating an existing home instead of building new.
Read the guide →Guide
FHA Manufactured Home Loans
FHA financing rules for HUD-code manufactured homes.
Read the guide →Guide
FHA Loan Limits
County limits that cap total construction loan amounts.
Read the guide →Guide
FHA Appraisal Requirements
How as-built and as-completed appraisals work.
Read the guide →Guide
Construction-to-permanent loans
The broader category this FHA program belongs to.
Read the guide →Guide
Construction loans
General construction financing overview.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
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The form below is tailored to FHA loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
FHA allows 3.5% down at 580+ FICO, or 10% down at 500–579 FICO.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
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Add Simply Approved Mortgages as a preferred source on Google
We update these guides as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
NMLS Consumer Access: Verify Simply Approved Mortgages LLC, NMLS #2620881.
Simply Approved Mortgages LLC, 633 W 5th St, Ste 2600, Los Angeles, CA 90071 · 877-813-7219 · support@simplyapprovedmortgages.com. State licensing details available at the NMLS Consumer Access link above. © 2026 Simply Approved Mortgages LLC.