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USDA New Construction Loan


Are you struggling to find your dream home? What if you found an empty lot where your dream home could be built? This is where a USDA new construction loan steps in to help.

USDA defines their Single-Close Feature as the following:

A combination construction to permanent loan, also known as a “single-close loan,” can be offered to eligible applicants by approved lenders with appropriate construction lending experience and adequate controls for interim construction cost disbursements.”

Under the USDA Single-Close feature, this provides for a USDA No Down Payment Construction Loan which allows for the ability to finance the lot, construction costs, and possibly closing costs all into your permanent financing loan without the need for two separate closings.

On the other hand, if you want to build on a lot that you already own, USDA loan proceeds can be used to pay off an existing land note as well

Key Benefits

USDA New Construction Requirements

USDA Single-Close requirements follow the same basic USDA qualifying criteria such as:

However, additional guidelines do apply such as builder approval requirements along with others.

Please contact our office for additional qualifying parameters if you are interested in a USDA Construction to Permanent Loan under the Single-Close feature.

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