The USDA single-close construction loan funds the land, the build and the permanent mortgage in one closing - and for eligible borrowers in eligible rural areas, it may allow no down payment at all. We check your eligibility before anything else.
Everything about a USDA construction loan starts with the map. USDA lending is limited to designated rural areas - but "rural" on the USDA map is far broader than most people assume, and plenty of ground just outside city limits qualifies. Before you fall in love with a parcel, before an application, before builder conversations, we run the location check. It takes minutes and it decides which road you are on.
Already own the land? Even better - we check it the same day you call.
A USDA construction loan is a single-close, construction-to-permanent structure. You are approved once. One closing covers the land purchase (or pays off a land loan you already have), the construction budget, and the permanent mortgage waiting at the end. While your home is built, the lender pays the builder in draws as each stage is completed and inspected. When the keys turn, nothing needs to be refinanced - the loan you already signed simply continues as your USDA mortgage.
Compare that with the old two-loan route: two approvals, two closings, two sets of costs, and market risk in between. The single close removes the gap entirely.
USDA financing may allow no down payment for eligible borrowers and properties. Few construction paths can say that, which is why the eligibility check comes first.
The lot purchase or an existing land loan can typically be wrapped into the same single loan as the build.
The program exists to grow homeownership outside the metro core - acreage, small towns and the edges of the map are its home turf.
One approval, one closing, one set of closing costs. The construction phase and the mortgage are the same loan.
We confirm the location qualifies and that your household income fits USDA requirements - before anything else.
One application covers construction and the permanent mortgage together.
Your contractor, plans and budget are approved alongside the loan.
A single closing funds land and construction. Draws pay the builder as inspected stages complete.
The loan continues as your permanent USDA mortgage. No second closing, ever.
Location outside the map, or income above the program limits? As a broker, we pivot rather than stop. FHA construction-to-permanent lending has no geographic restriction and keeps the down payment low - our guide lives at FHAConstructionMortgages.com. Building a barndominium on that rural land? That is its own specialty, covered at BarndominiumMortgages.com. One conversation and we tell you which lane your project belongs in.
Give us the address or the general area. We'll run the USDA eligibility check, look at your situation, and lay out exactly what building there would take - no cost, no obligation.