VA One-Time Close Construction Loan: Build Your Home with Zero Down

What is a VA One-Time Close Construction Loan?

The VA One-Time Close (OTC) Construction Loan is an exclusive benefit for veterans, active-duty service members, and eligible spouses, allowing them to build a new home with zero down payment. This loan program eliminates the need for separate construction financing and simplifies the process into a single VA mortgage.

With no PMI, no down payment, and competitive rates, this is one of the best construction financing options available for those who have served.

Advantages of a VA OTC Loan

🟢 No Down Payment – 100% financing with no cash required upfront

🟢 No PMI – Save money with no private mortgage insurance

🟢 One-Time Closing – No need for a second loan after construction

🟢 Low Fixed Rates – VA loans offer some of the lowest interest rates available

🟢 Government-Backed Security – Backed by the Department of Veterans Affairs

How the VA OTC Loan Works

The process is simple and stress-free:

1️⃣ Loan Pre-Approval – Verify VA eligibility and get pre-approved.

2️⃣ Select a VA-Approved Builder – Choose a builder who meets VA requirements.

3️⃣ Loan Closing & Construction Begins – The VA OTC loan closes before construction starts.

4️⃣ Construction Period (6-12 Months) – Payments are made to the builder as work is completed.

5️⃣ Move In & Loan Converts – When construction is done, the loan automatically becomes a 30-year VA mortgage.

FAQs About VA OTC Loans

📌 Who qualifies for a VA OTC loan?

Eligible veterans, active-duty military, and surviving spouses.

📌 What credit score is needed?

A 620+ credit score is recommended for VA construction loans.

📌 Can I build any type of home?

The VA loan is designed for single-family homes built by VA-approved builders.

Start Building with a VA OTC Loan Today!

If you’re a veteran or active service member, the VA One-Time Close Construction Loan lets you build your dream home with zero down. Contact us today to get started!