Obtain a construction loan to build your home.
Note: Interest-only results apply to traditional construction loans. With Security America Mortgage's VA One-Time Close loan, you make no payments during construction.
Quick answer: A construction loan calculator estimates how much you can borrow and how much cash you need to build a home. With a one-time close construction loan, the land, construction and permanent mortgage close together. That means one closing and one set of closing costs. What you need to bring depends on the program. A VA construction loan can finance up to 100% of the lower of total project cost or appraised value. FHA one-time close requires at least 3.5% down, and conventional one-time close requires at least 5% down. Land you already own can count toward what you need.
Select your land ownership status — choose whether you already own the land or plan to buy it with construction financing.
Enter the amount owed on the land — use $0 if your land is paid off. For a proposed land purchase, ask SAM to review the land and construction budget together.
Enter your total construction cost — the fixed-price contract amount with your builder.
Enter the expected appraised value of the completed home and land.
Enter an interest rate for your planning scenario. This is an illustration, not a rate quote.
Enter your construction timeline in months.
Estimate monthly payments and total loan expenses before construction begins — before committing to a builder or lot.
Adjust the construction cost, completed property value, interest rate and timeline to compare planning scenarios. Ask SAM separately about VA, conventional, FHA and USDA one-time-close options.
Review the payment estimates produced by the calculator. Your actual construction-interest and permanent-payment obligations depend on your approved loan terms.
Review the estimated loan amount and down payment shown for your scenario, then confirm the required cash, land treatment and eligible project costs with SAM.
Visualize how interest accumulates during construction draws and how your rate affects total borrowing cost.
Security America Mortgage offers one-time close construction loans in four programs. Here is how they compare.
| Program | Minimum down payment | Credit score | Best for |
|---|---|---|---|
| VA One-Time Close | $0 (up to 100% of the lower of cost or appraised value) | 620 minimum; most approvals are 640+ | Eligible veterans, service members and surviving spouses |
| FHA One-Time Close | 3.5% | 650 minimum | Buyers with smaller down payments who are not VA eligible |
| Conventional One-Time Close | 5% (95% max loan-to-value) | Available with scores starting at 620, subject to underwriting approval | Buyers with stronger credit or more equity |
| USDA One-Time Close | $0 | Subject to program guidelines | Eligible rural areas, within USDA income limits |
The total project cost is $420,000. Here is the minimum cash each program would need for the down payment, before closing costs. These figures are an illustration, not a loan offer.
| Program | Minimum down payment | Base loan amount |
|---|---|---|
| VA One-Time Close | $0 | $420,000 (plus the VA funding fee if not exempt) |
| FHA One-Time Close | $14,700 (3.5%) | $405,300 |
| Conventional One-Time Close | $21,000 (5%) | $399,000 |
If you already own the land: your equity can count toward the down payment. For example, a lot worth $80,000 with no loan on it is more than the 5% a conventional build needs on a $420,000 project. Read how a construction loan works when you own land, or use the VA construction loan calculator if you are a veteran.
Want your real numbers? Start your construction loan application or call (855) 701-2816.
Educational estimate only. The calculator and examples on this page are illustrations, not a loan offer, rate quote or commitment to lend. Your loan amount, down payment, interest rate, APR and payment depend on your credit, income, the appraisal, builder and project approval, and the rate when you lock. Ask us for a Loan Estimate with your actual figures. Security America Mortgage, NMLS #355253. Equal Housing Opportunity. Last updated November 3, 2026.
 A construction loan funds your home build in stages rather than as a single lump sum at closing. Understanding the basic process makes the calculator outputs easier to plan around and helps you know what to expect at each phase.
Apply with a lender that originates construction loans. The lender reviews your credit, income, debt-to-income ratio, employment history, and the loan type you qualify for — VA, FHA, USDA, or Conventional. Review construction loan requirements for the complete borrower qualification checklist before submitting your file.
Pre-approval typically takes 24 to 48 hours once you submit a complete file. Your pre-approval confirms your maximum loan amount so you know your budget before you commit to land or a builder.
Three things must be in place before the lender can finalize your loan: the land you will build on, a licensed and insured builder, and a fixed-price construction contract with detailed plans and specifications.
If you do not yet own the land, you can include the land purchase in your construction loan as part of a one-time close transaction — review the loan to buy land and build a house guide for how this structure works. If you already own the land, your equity in that land counts toward your contribution to the project — review how a construction loan works when you own land for the mechanics of how existing land equity interacts with your loan at closing.
Use how to choose a home builder for a structured evaluation framework before finalizing your contractor selection.
The lender orders an appraisal that establishes the “after improved value” of the completed home plus land — this value caps how much you can borrow. Review the VA appraisal checklist to understand what inspectors evaluate and how the after-improved value is determined.
The lender also completes builder acceptance, which reviews your builder’s licensing (where required by state or local jurisdiction), general liability insurance, workers’ compensation insurance, recent project history, and the proposed draw schedule. Review how to become a VA-approved builder for the full lender acceptance criteria and documentation your builder needs to provide. Acceptance typically takes 2 to 5 business days once the lender has a complete package.
At closing you sign the loan documents and the construction loan funds. If you are buying land as part of the loan, the land closing happens in the same transaction. The construction budget plus a contingency reserve goes into an escrow account held by the lender — review financing home construction paperwork to understand what documentation your lender requires at each draw release stage.
With a one-time close construction loan, your interest rate locks at closing and stays locked through construction and beyond. With a two-close structure, you take rate risk during the build and have a separate closing for the permanent mortgage at the end. For most borrowers, the single close is the better choice — see construction to permanent loan for a full breakdown of how the conversion process works across both structures.
The builder begins work. As milestones are completed — foundation, framing, mechanical, finishes — the builder invoices the lender. The lender inspects each milestone, approves the work, and releases that draw from the escrow account directly to the builder. Most builds involve 3 to 5 draws, and construction must be completed within 11 months.
Understanding how long it takes to build a house before you close is essential — the construction timeline determines how long your rate lock needs to cover.
With Security America Mortgage’s VA One-Time Close construction loan, you make no mortgage payments during construction; the interest during construction is included in the construction budget, and regular payments begin after the home is complete.
When construction is complete, the lender orders a final inspection. Once approved, the final draw releases and the loan converts to — or is refinanced into — the permanent mortgage. Your regular principal and interest payments then begin, based on the total loan amount amortized over the standard 30-year term.
With a one-time close, this conversion is automatic. With a two-close structure, you complete a separate closing for the permanent mortgage at this stage. Either way, you begin making your full monthly mortgage payment — principal plus interest, plus any escrowed property taxes and homeowners insurance — once the home receives its certificate of occupancy.
Regardless of loan type, your builder must be licensed (where required by state or local jurisdiction), insured, and accepted by your lender.
Lender contractor acceptance reviews licensing, general liability and workers’ compensation insurance, recent project history, and the proposed draw schedule.
For VA construction loans specifically, see our VA approved builders page for a state-by-state guide and builder map
If you’ve owned for less than a year then your equity is typically determined by the difference between the loan balance and the original sales price.
If you are under contract to buy land, you have two main options.
Option A: Use a one-time close construction loan to buy the land and start construction in a single transaction. This works with VA, FHA, USDA, and conventional construction loans, but requires having a builder, fixed-price contract, and approved plans before the land closing date.
Option B: Pay cash for the land or use a separate land loan, then start the construction loan later once you have a builder and plans ready. If your timing is tight, ask the seller for a closing extension so you can line up the builder, plans, and one-time close construction loan in time.
First, determine if you can combine your land and construction loan. If you can’t you’re probably looking for the most common term for land loans in the US which is 3 to 5 years. The land is considered to be a riskier investment than a home, so lenders are more likely to require a shorter repayment period. Further, land loans often have higher interest rates than home mortgages. Security America Mortgage doesn’t do land loans unless they are wrapped into a one-time close construction loan.
There are some lenders that offer land loans with longer terms, up to 10 or 15 years. However, these loans are typically more difficult to qualify for and may have higher interest rates.
The specific term of a land loan will depend on a number of factors, including the borrower’s credit score, the amount of the loan, and the location of the land. It is important to shop around and compare rates from different lenders before choosing a land loan.
Here are some other factors that can affect the term of a land loan:
If you are considering a land loan, it is important to understand the terms and conditions of the loan before you sign docs. You should also be prepared to provide the lender with documentation of your income, assets, and debt just like on a home loan with us.
 Enter the expected appraised value of the home built and land when your construction is complete.
Down Payment
This is the calculated required down payment to receive the loan.
Loan Amount
This is the calculated loan amount for your project.
Interest Rate
enter the expected interest rate for your loan and calculate your total interest.
Length Of Project (Months)
Number of months you expect your construction project to take to complete.
Initial Interest-Only Payment on Construction to permanent loans
The initial interest-only payment is calculated as an interest-only payment of the maximum loan minus the cost of construction. Interest-only payments are for temp to perm loans and they aren’t a va one-time close construction loan. In this case, you will have 2 closings, 2 sets of closing costs, and interest rate volatility based on market conditions and after the home is built you can choose permanent financing like the VA loan, Conventional loan, FHA loan, etc.
Final Interest-Only Payment
The final interest-only payment during construction is calculated as an interest-only payment for the maximum loan amount.
Principal And Interest Payment
The principal and interest monthly payment for the remainder of the 30-year term of the loan.
If you are under contract to buy land, you have two main options.
Option A: Use a one-time close construction loan to buy the land and start construction in a single transaction. This works with VA, FHA, USDA, and conventional construction loans, but requires having a builder, fixed-price contract, and approved plans before the land closing date.
Option B: Pay cash for the land or use a separate land loan, then start the construction loan later once you have a builder and plans ready. If your timing is tight, ask the seller for a closing extension so you can line up the builder, plans, and one-time close construction loan in time.
| Situation | Best Loan Type |
|---|---|
| Veteran or active duty with VA entitlement | VA Construction Loan |
| Building in a rural area with moderate income | USDA Construction Loan |
| First-time buyer with limited down payment | FHA Construction Loan |
| Strong credit, building a high-end home | Conventional Construction |
| Loan amount exceeds VA county limits with partial entitlement | Conventional or VA Jumbo |
| Buying land and construction in one transaction | Any One-Time Close Loan |
The maximum loan to value ratio (LTV) determines how much you can borrow against the project’s value. Higher LTV means less money out of pocket at closing.
| Loan Type | Max LTV | Down Payment | Mortgage Insurance |
|---|---|---|---|
| VA Construction Loan | 100% (+ VA funding fee) | $0 with full entitlement | None — ever |
| USDA Construction Loan | 100% of market value | $0 in eligible areas | Annual guarantee fee |
| FHA Construction Loan | 96.5% | 3.5% minimum | Upfront + monthly MIP |
| Conventional (Standard) | Up to 95% | 5% minimum | PMI until 20% equity |
For veterans, the VA construction loan is almost always the best option because of the combination of $0 down, no monthly mortgage insurance, and competitive interest rates.
 Yes. The calculator is free with no obligation. It provides estimates only. Final loan amounts, interest rates, and qualifying terms are determined by your lender after a full application.
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The calculator shows the loan amount and monthly payments. Closing costs vary by lender and state. For a personalized closing cost estimate, contact us at (855) 701-2816 or start a pre-approval application.
The calculator provides estimates based on the inputs you provide. Actual loan terms depend on your full financial profile, credit, the property appraisal, market interest rates at closing, and lender underwriting. Use the calculator for planning purposes and follow up with a lender for personalized numbers.
Yes. Enter the appraised value of land you already own. The calculator treats this as a contribution toward the project, reducing the loan amount needed.
A one-time close construction loan combines the construction loan and the permanent mortgage into a single loan with one closing. The interest rate locks at the start of construction. A two-close structure involves separate closings for construction and permanent financing, with two sets of closing costs and rate exposure during construction.
Your loan amount is capped at the lower of the construction cost plus land value or the appraised value. If the appraisal comes in lower than expected, you may need additional cash at closing to make up the difference, or you may need to reduce the construction scope.
Yes. After construction completes and you have a permanent mortgage, you can refinance using a VA IRRRL (for VA loans), an FHA Streamline (for FHA loans), or a standard refinance for other loan types.
For deeper VA-specific calculations, including funding fee handling and the disability funding fee waiver, see our VA construction loan calculator
No. A separate bank land or construction loan often requires around 20% down, but one-time close programs require much less. VA and USDA one-time close loans can require $0 down, FHA one-time close requires at least 3.5%, and conventional one-time close requires at least 5%. Equity in land you already own can count toward the down payment.
Your loan is based on the lower of the total project cost (land, construction, soft costs and contingency) or the appraised value when the home is complete, multiplied by the program’s maximum loan-to-value: up to 100% for VA, 96.5% for FHA and 95% for conventional one-time close. You also have to qualify on income, debts and credit.
With a traditional construction loan, you usually make interest-only payments on the money drawn so far. With Security America Mortgage’s one-time close loans, construction-period interest is included in the approved project budget, so you do not make mortgage payments while the home is being built. Your first regular payment starts after construction is complete.
It can. With a one-time close loan, the land purchase, construction and permanent mortgage close together in one loan. If you already own the land, the loan closes as a refinance that pays off any lot loan, and your land equity counts toward the project.
At Security America Mortgage, VA one-time close construction loans have a 620 minimum credit score, and most approvals are 640+. FHA one-time close requires at least a 650 score. Conventional one-time close financing may be available with credit scores starting at 620, subject to underwriting approval.
Determine how much home you can afford.
Learn what it costs to fund a VA loan.
Calculate your Basic Housing Allowance.
Find out how much you can borrow for $0 down.
Obtain a construction loan for building or improving a home
Estimate your loan preapproval amount based on your income and expenses.
See if refinancing makes sense for you.
Estimates your monthly VA mortgage payment
