One-Time Close Construction Loan Tampa Bay: Build Your First Home With One Mortgage

Building a home may be more achievable for Tampa Bay first-time buyers than most people realize — especially with a one-time close construction loan. Instead of navigating two separate closings, two sets of fees, and two rounds of qualifying, this single-loan solution covers the entire process from groundbreak to permanent mortgage.

With thousands of new homes still being built annually in Pasco, Hillsborough, and Hernando counties — and builders actively courting buyers — knowing how this loan works could open a path to homeownership you hadn't considered.

What Is a One-Time Close Construction Loan and How Is It Different?

A one-time close (OTC) construction loan — sometimes called a construction-to-permanent loan — combines two financing phases into one:

1. The construction phase: Interest-only payments on the amount actually drawn during the build
2. The permanent phase: The loan automatically converts to a standard 15- or 30-year mortgage after a certificate of occupancy is issued

The alternative — a two-time close — requires you to first get a short-term construction loan, then refinance into a permanent mortgage after completion. That means qualifying twice, closing twice, and paying two rounds of closing costs. With a one-time close, you qualify once and close once.

For first-time buyers in Tampa Bay, the benefits are significant:

• Lower total closing costs (one closing instead of two)
• Rate locked at application — your permanent mortgage rate is set before the first nail is driven
• No re-qualifying required when construction is complete
• Works with FHA, VA, and conventional programs, including down payment assistance in some cases

Who Is a One-Time Close Construction Loan For?

This loan type makes sense if you are:

• Building a semi-custom or custom home with a builder in a new development in Wesley Chapel, Zephyrhills, Wimauma, or another growing Tampa Bay community
• Purchasing a vacant lot and working with a licensed Florida contractor to build a home to your specifications
• A veteran or active-duty service member who wants to build a primary residence using VA benefits
• A buyer who values locking in today's rate before a 10-to-14-month build rather than taking rate risk through a two-close process

It is generally not the right tool for buying a completed inventory home from a builder — that is a standard purchase transaction.

FHA One-Time Close Construction Loan in Tampa Bay

The FHA one-time close loan is one of the most accessible construction financing options for first-time buyers.

Minimum requirements for most Tampa Bay lenders in 2026:

FHA mortgage insurance applies: an upfront MIP of 1.75% of the loan amount (typically rolled into the loan) and an annual MIP of 0.55% divided into monthly payments.

The home must be your primary residence. Investment property construction is not eligible for FHA.

One important note: gift funds can cover the full 3.5% FHA down payment on a one-time close loan, provided the gift is from an eligible donor and documented according to FHA guidelines. This makes it possible to combine an OTC construction loan with family gift funds to build a first home with very little of your own cash.

VA One-Time Close Construction Loan for Tampa Bay Veterans

For eligible veterans, active-duty service members, and qualifying surviving spouses, the VA construction loan is one of the most powerful financing tools available anywhere.

VA OTC highlights:

• Zero down payment required
• No private mortgage insurance (PMI)
• VA funding fee applies (currently 2.15% for first-time use with no down payment; can be financed into the loan or waived for disability-rated veterans)
• Builder must be VA-registered and licensed in Florida
• The home must meet VA Minimum Property Requirements (MPRs)

If you are stationed at or near MacDill Air Force Base or living in the greater Tampa Bay area with VA entitlement, building with a VA one-time close loan can mean constructing a new home with no down payment and no monthly mortgage insurance — a significant financial advantage over any other loan program.

For more on VA loan programs in Tampa Bay, visit valoantb.com for program details and current eligibility requirements.

Conventional One-Time Close Construction Loan

Conventional construction-to-permanent loans are available through Fannie Mae-approved lenders and typically require:

• Down payment: 5% minimum (some programs allow 3–5% for primary residences)
• Credit score: 620 minimum, with better rates above 740
• No PMI required if you put 20% or more down
• No upfront mortgage insurance premium

For buyers with stronger credit who plan to put 10–20% down, conventional OTC loans often result in lower total costs than FHA over the life of the loan because FHA MIP now runs for the life of the loan on most terms.

How the Draw Process Works in Tampa Bay

After closing, your lender funds the construction through a draw schedule tied to verified milestones. A typical Tampa Bay draw schedule looks like:

1. Draw 1 — Lot purchase or foundation completion (15–20% of funds)
2. Draw 2 — Framing complete and dried in (20–25%)
3. Draw 3 — Mechanical systems (plumbing, electrical, HVAC) rough-in complete (20–25%)
4. Draw 4 — Drywall, insulation, and interior work (15–20%)
5. Draw 5 — Certificate of occupancy / final completion (10–15%)

Before each draw is released, the lender orders an inspection to verify the milestone was completed. You make interest-only payments on the outstanding balance during construction — so if only $100,000 of a $350,000 loan has been drawn, your payment is based on $100,000, not the full amount.

Once the certificate of occupancy is issued, the loan automatically converts to your permanent mortgage, and your standard principal-and-interest payments begin.

What to Look for in a Tampa Bay Builder

Using an OTC construction loan requires a licensed, financially stable builder. Before signing a building contract:

• Verify the Florida contractor's license at the state Department of Business and Professional Regulation (DBPR) website
• Confirm FHA or VA registration if you are using a government loan
• Check references and completed projects in the Tampa Bay area
• Review the build contract carefully — understand what is and is not included in the base price, and what change orders cost
• Confirm the build timeline and ask about the builder's current backlog

For new home communities in Pasco County, Riverview, Wesley Chapel, and Zephyrhills, your REMAX agent can introduce you to builders currently offering construction contracts with favorable terms. Learn about new construction builder incentives in Tampa Bay to understand what credits and buydowns builders are currently offering.

How One-Time Close Compares to Buying a Spec Home

Note that most down payment assistance programs in Tampa Bay — including Hometown Heroes, SHIP funds, and the Hillsborough and Pinellas DPA programs — require the home to exist before they will fund. Check current program rules with your lender before assuming DPA is available on a construction loan.

Down Payment Assistance and One-Time Close Loans

Down payment assistance stacking is limited but not impossible with construction loans. Here is the current picture:

• FHA OTC with gift funds: Eligible — family members can gift the full 3.5% down payment
• VA OTC: Zero down by definition — no DPA needed
• Florida Hometown Heroes: Not available on construction loans in most cases
• SHIP and county DPA programs: Generally require a completed, occupied home
• Conventional 3–5% OTC: Most DPA programs require conventional loans on existing homes

If down payment assistance is a priority, your best path is usually to combine a new construction one-time close loan with gift funds, or to purchase a builder's completed spec or inventory home using a standard DPA-eligible purchase loan.

Is Now a Good Time to Build in Tampa Bay?

The Tampa Bay new construction market in late 2026 is showing signs that buyers have some leverage — builder incentives including rate buydowns and closing cost credits are at levels not seen since 2019, and inventory of available lots is higher than in the peak years of 2021–2022. For buyers who can wait 10–14 months for a completed home, a construction loan combined with today's builder concessions can produce a very competitive total cost of ownership.

Rates in the 6.4–6.9% range for construction-to-permanent financing are higher than the historic lows of 2020–2021, but builders in Wesley Chapel, Zephyrhills, and Riverview are actively buying rates down to the 5.5–6.0% range on long-term permanent mortgages as part of their incentive packages.

If you are exploring whether building makes more sense than buying existing, your REMAX agent can walk you through the math for your specific situation. Call (813) 733-7907 to connect with Barrett Henry and the NOW Team, who specialize in helping Tampa Bay first-time buyers navigate both the purchase and build process.

You can also search available land and new home communities across the region at nowtb.com to see what is currently available in your price range and target area.

Next Steps to Get Started

1. Get pre-approved for your loan type — FHA, VA, or conventional — with a lender experienced in one-time close construction in Florida. Standard pre-approvals for existing homes do not automatically qualify you for construction products.
2. Identify a lot or a builder — your agent can help connect you with builders actively marketing construction contracts in Tampa Bay.
3. Review the build contract before signing with a Florida real estate attorney if you have questions about contract terms, change order provisions, or what happens if the build timeline extends.
4. Lock your rate at closing — do not wait until the home is complete to worry about your permanent rate.

A one-time close construction loan is not the right fit for every first-time buyer, but for those willing to wait for the build and who value customization, it can deliver a brand-new home in a growing Tampa Bay community — often at a price point that competing resale inventory simply cannot match.

Call (813) 733-7907 to speak with a REMAX agent who knows the new construction market across Tampa Bay, from Pasco County to Manatee County. With 23+ years of experience helping buyers navigate Florida real estate, the NOW Team can help you decide whether building or buying makes the most sense for your situation and timeline.