VA One-Time Close:

Build Your Custom Home with Zero Down

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Are You Ready to Build a Home?

Peak Seven Mortgage offers countless opportunities for those looking to build their dream home, and exploring construction loans can be an excellent way to bring your vision to life.

VA CONSTRUCTION LOAN

Lock-and-Build: You lock your interest rate before construction starts. If rates jump while your house is being framed, you’re protected.

No Payments During Construction: In most OTC setups, the interest is rolled into the loan. The Veteran doesn't make a single mortgage payment until the home is finished and they move in.

100% Financing: This covers the land, the construction costs, and the permanent mortgage. If you already own the land, you can use that equity toward the project.

No Re-Qualifying: Since it's one closing, you don't have to worry about your credit score or debt-to-income ratio changing 9 months from now when the house is done. You are already "done" at the first closing.

VA One-Time Close vs. Conventional Construction

Feature	VA One-Time Close (OTC)	Conventional Construction
Down Payment	$0 Down (100% Financing)	Typically 5% to 20% Down
Payments During Build	$0 Payments (Rolled In)	Interest-Only Monthly Payments
Closing Costs	One Closing (Save Thousands)	Often Two Closings
Interest Rate	Lower (Gov-Backed)	Higher (Market Risk)
Mortgage Insurance	Never Required	Required if < 20% Equity
Re-Qualifying	Locked at Start; No Re-eval	Must Re-qualify After Build

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Construction Loans

and How They Work

Construction loans are a specialized type of financing designed to support the process of building a new home or completing major renovations.
If you're considering building your dream home from the ground up, a construction loan could be the ideal option to bring your vision to life.
Construction loans provide funding in phases as the building project progresses, helping you manage costs and stay aligned with the construction timeline.
Unlike traditional mortgages, which provide a lump sum at closing, construction loans release funds in stages — often tied to specific milestones like foundation completion, framing, and finishing.
Many construction loan programs offer adjustable-rate mortgage (ARM) options during the building phase, giving you flexibility in how you manage interest payments throughout the process.
Before moving forward, it’s important to explore different construction loan options, work closely with lenders familiar with the process, and make sure your financing aligns with both your construction goals and your long-term financial plans.

How to Qualify for a

Construction Loan

Citizenship or Permanent Residency: You must be either a United States citizen or a permanent resident.
Debt-to-Income Ratio: Your monthly payment should be within a certain percentage of your monthly income, typically around 29%. Lenders will also assess your overall debt-to-income ratio to ensure financial stability.
Steady Income: Lenders typically require evidence of steady income over the past 24 months. Any recent instances of debt sent to collections within the past year may negatively impact your application.
Credit Score: To increase your chances of approval and secure better terms, it's advisable to raise your credit score to at least 640 before applying for a construction loan.
Construction loans are designed to provide financing specifically for building a new home or undertaking major renovations. They offer flexibility in customizing your home according to your preferences and may include adjustable-rate mortgage (ARM) options to manage interest rates during the construction period.
It's important to thoroughly research and compare various construction loan programs, consult with lenders, and carefully consider your financial goals and circumstances before proceeding with your construction project.

Building Your Dream Home Just Got Easier

Have you ever thought about building your own home from scratch? There's a special kind of loan that can make this dream a lot easier to achieve. It's called a one-time close construction loan. This isn't like other loans. It's made to help you build your new home without all the hassle.

Here's the cool part: this loan wraps up the construction part and the regular home loan part into one easy process. That means you save time and money because you only go through the loan process once, not twice. It pays for building your home, and then it changes into a normal mortgage when your home is all built. Plus, you get to lock in your interest rate at the beginning, so there are no surprises later.

You do need to have a clear plan and budget for your home, but the benefits like saving on costs and not having to deal with lots of paperwork make it a great option for many people looking to build their own home.

If you're dreaming of building your home exactly how you want it, a one-time close construction loan might be just what you need to get started. Why not explore how this loan could help you save time and money on your journey to your dream home?

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More about Vic - courtesy of Vetted VA!

My Vetted VA Interview

In this episode of the Vetted VA podcast, host Nathan Knottingham interviews Vic Malone, a 27-year Navy veteran and owner of Peak Seven Mortgage. The conversation explores Vic’s unique journey from serving in submarines and space operations to becoming a dedicated mortgage professional in Colorado.

A pivotal moment in Vic’s life occurred just five days before his naval retirement in 2012, when the Waldo Canyon Fire destroyed his home. This disaster forced him to pivot; he spent months operating heavy equipment to clear debris and eventually designed and rebuilt his own house. It was during the subsequent refinancing process that Vic discovered the value of mortgage brokers. He realized that his technical background and desire for a sense of accomplishment—something more immediate than the long-term timelines of defense contracting—made him a natural fit for the industry.

Vic focuses heavily on debunking VA loan myths, specifically the misconception that veterans lack "skin in the game" or that VA appraisals are unnecessarily difficult. He argues that the "down payment" is earned through military service. His experience rebuilding his house leads to him really appreciate and promote the VA One-Time-Close Construction Loan for building in Colorado Springs.

A technical highlight of the episode is Vic’s breakdown of the VA Funding Fee. He demonstrates how a 5% down payment can significantly reduce this fee, saving veterans thousands of dollars in both upfront costs and long-term interest.

Throughout the interview, Vic emphasizes the importance of integrity, the necessity of verifying a Certificate of Eligibility (COE), and the value of the Vetted VA community in providing a professional support network for both lenders and the veterans they serve.