Colorado Springs VA One-Time Close Construction Loan Service

Build your new home in Colorado Springs with one closing and full VA financing. The JD.Mortgage team at PRMG helps qualified veterans and service members combine land, construction, and long-term financing into a single VA-backed loan—no second approval, no refinance later, and no duplicate fees.

What Is a VA One-Time Close Construction Loan?

This VA program lets you close once for the entire project: land purchase (or payoff), construction phase, and permanent mortgage. Your interest rate locks before construction begins, and payments typically don’t start until your home is complete. Once finished, the loan automatically converts into a 30-year fixed-rate VA mortgage.

Why Colorado Springs Borrowers Choose It

Colorado Springs is full of military families from Fort Carson, Peterson SFB, Schriever SFB, and the Air Force Academy. Many prefer building new homes close to base or in El Paso County’s growing communities. This loan helps you finance 100 percent of the project cost under your VA entitlement, with rate protection and one smooth closing.

Key Program Highlights

• One closing only: construction and mortgage combined.
• Fixed 30-year term: no balloon, no adjustable rate.
• Maximum loan amount: up to $999,999 (subject to VA county limits).
• Minimum credit score: 620 for site-built / 650 for manufactured homes.
• No manual underwriting: automated AUS approval required.
• No payments during construction: the builder covers interim interest until completion.
• Owner-occupied only: must be your primary residence.
• VA LAPP appraisal required: based on plans, specs, and land contract.
• Eligible property types: one-unit stick-built, modular, or multi-wide manufactured (max 10 acres).

Step-by-Step: How the VA One-Time Close Works

1. Start your VA One-Time Close pre-qualification.
2. We verify your COE (Certificate of Eligibility) and confirm builder registration.
3. Your builder submits plans, specs, and cost breakdown for approval.
4. One closing funds the land (if applicable) and sets up the construction escrow account.
5. NCF or approved construction administrator releases draws as stages are completed—no upfront builder advances.
6. When construction is complete and final inspection clears, the loan automatically converts to the permanent VA mortgage.

Costs and Builder Guidelines

There’s a single set of closing costs and one appraisal. Interim construction interest and administrative fees are built into the project budget—not charged directly to the borrower. Builders must be VA-registered, experienced, and fully licensed. Borrowers cannot act as their own builder, and family-member contractors are ineligible. All draws are tied to verified progress on completed work.

Credit and Income Requirements

• Minimum FICO 620 for site-built homes / 650 for manufactured homes.
• Automated Underwriting System (AUS) approval required.
• Two years since bankruptcy and three years since foreclosure (per VA rules).
• Standard income, employment, and residual income verification per VA guidelines.

Funding Fee and Payments

The standard VA funding fee applies unless you are exempt for service-connected disability. The fee can be financed into the loan amount. During construction, borrowers generally make no monthly payments; the builder covers interim interest until the home is finished and the permanent loan begins.

Why Work with the JD.Mortgage Team

Led by J.D. Peck, who has been in the industry since 1999 and personally involved in over 3,000 closings, our team specializes in VA lending across 49 states (except NY). We coordinate every part of the One-Time Close process—from builder approval to final draw—to make sure nothing stalls mid-build. Our Colorado Springs base gives you local communication with national backing from PRMG.

Helpful Internal Resources

• Loan Options
• VA Loans: No Minimum Credit Score
• VA IRRRL Refinance
• Colorado Springs Home Loan
• Mortgage Colorado Springs

Frequently Asked Questions

Is a VA One-Time Close the same as construction-to-perm?

No. A construction-to-perm loan usually has two closings or a post-construction refinance. The VA One-Time Close has one closing that covers the entire process.

What credit score do I need?

Minimum 620 for site-built homes and 650 for manufactured homes. AUS approval is required—manual underwriting is not allowed on this program.

Can I use my VA benefit to buy land and build?

Yes. The loan can include the land purchase or pay off a lot you already own.

Do I make payments while the home is being built?

No. The builder covers interim interest until construction is complete and the loan converts to your regular mortgage.

Can I choose my own builder?

Yes, but the builder must be VA-registered, licensed, and approved through the program. Borrowers cannot act as their own builder or hire family members as contractors.

Is the rate locked before construction?

Yes. Your long-term fixed rate locks before closing so you’re protected from market changes during the build.

What are the maximum loan limits?

Up to the standard VA county limit for El Paso County, Colorado ($806,500 for 2025), or up to $999,999 with full entitlement and approval.

Are gift funds allowed for closing costs?

Yes. Gift funds must be sourced and verified in your account before closing.

Can I use seller or builder credits to cover costs?

Yes. VA permits seller/builder contributions up to 4 percent of the sales price for closing costs and prepaids.

Can I receive cash back at closing?

No. Borrowers cannot receive cash or reimbursement from loan proceeds. Any remaining funds are applied as principal reduction.

Can I start building before closing?

No. All construction must begin after the loan has closed. Pre-build activity renders the project ineligible.

Does the VA One-Time Close work for manufactured homes?

Yes, for multi-wide manufactured homes meeting HUD and VA standards. Credit score minimum is 650 and land cannot exceed 10 acres.

When does my first payment start?

Your first regular mortgage payment starts after construction is complete and the loan has converted to the permanent phase.

Can I refinance the loan later with VA?

Yes. Once you’ve made six payments on the permanent phase, you can use the VA IRRRL for rate reduction if market conditions improve.

Start your VA One-Time Close pre-qualification today or connect with the JD.Mortgage Team for personal guidance.