Two products.
One trusted partner.
One-Time Close loans for homebuyers building their dream home. Ground-up construction financing for builders and investors. Both built around how construction actually works.
Get Started →Finance construction and your permanent mortgage in a single closing. Conventional, VA, FHA, and USDA options — with your rate locked from day one.
Asset-based spec and investment construction lending. No income documentation. Up to $10M. Draws released as work is completed.
One-Time Close Construction Loan
One closing. One loan. Your construction financing and permanent mortgage combined from the start — so your rate is locked before a single nail is driven. Available in Conventional, VA, FHA, and USDA programs.
Loan Program Options
| Program | Min Down Payment | Min FICO | Loan Limit | Key Benefit |
|---|---|---|---|---|
| Conventional | 10% (5%†) | 680 | Up to $806,500 | Flexible overlays; barndominium eligible |
| VA | $0 Down | 650 | No limit (eligible veterans) | Zero down for qualifying service members |
| FHA | 3.5% | 640 | County FHA limits | Lower credit threshold, flexible qualifying |
| USDA | $0 Down | 640 | Rural eligible areas | Zero down in qualifying rural locations |
| † Conventional can go to 95% LTV / 5% down with compensating asset factors: current home must have substantial equity, will be sold upon completion, and equity from sale will be applied to the OTC loan. | ||||
Why One-Time Close?
We can finance
barndominium builds.
Barndominium-style construction is eligible under Conventional One-Time Close — but there are specific restrictions that must be met. It’s not a blanket approval, and not every project will qualify. If you’re planning a barndominium, reach out early so we can walk through the overlays together and determine eligibility before you’re deep into planning.
Note: Barndominium properties are not eligible for VA OTC financing. VA loans require conventional construction standards.
Builder Registration
Your general contractor must be registered with our construction lending partner before closing. It’s a one-time process — once approved, your builder is on file for all future projects. Email us and we’ll walk your builder through everything they need to submit.
Ground-Up Construction Financing
Asset-based lending for builders and real estate investors developing spec homes and investment properties. No income documentation — approval is driven by the project, not your tax returns.
How It Works
Common Questions
Covering both One-Time Close and Ground-Up Construction programs.
One-Time Close is for homebuyers building their primary residence. It combines construction and permanent financing into one loan with one closing — you end up with a standard mortgage at the end. Ground-Up Construction financing is for builders and investors building spec or investment properties. It’s short-term, asset-based, requires no income documentation, and is repaid when the property sells or is refinanced.
Minimum FICO scores start at 640 for FHA and USDA, 650 for VA, and 680 for Conventional. Down payment varies by program — VA and USDA offer $0 down, FHA starts at 3.5%, and Conventional starts at 10% (or as low as 5% with qualifying compensating factors). Eligible veterans will typically find VA OTC to be the strongest option available.
Conventional OTC can go to 95% LTV (5% down) if specific compensating factors are met: your current home must have substantial equity, it will be sold upon completion of new construction, and the equity from that sale will be applied to the OTC loan balance. Reach out and we’ll walk through whether your situation qualifies.
Yes — with Conventional OTC only. Barndominium properties are not eligible under VA, FHA, or USDA OTC programs. For Conventional, specific overlays must be met including AUS approval, owner-occupancy, construction type (steel or post-beam frame, concrete slab, min 70% livable space), comparable sales within 5–10 miles, and no agricultural land classification. See the full overlay grid above or contact us to discuss your project before committing to a plan.
No. No W-2s, tax returns, paystubs, or anything similar. Approval is based on the project — your asset profile and the strength of the build plan. This makes it particularly well-suited for self-employed builders and investors whose tax returns don’t reflect actual financial strength.
Up to 85% of the purchase price plus total construction costs, including up to 100% of all hard construction costs. Loan amounts range from $150,000 to $10,000,000 — covering single spec homes through larger multi-lot development projects.
Both programs release funds in draw schedules tied to completed construction milestones. An inspector verifies work before each draw is released — protecting both the borrower and the project. For OTC loans, draws go directly to your builder during the construction phase.
Yes — for One-Time Close loans, your general contractor must be registered with our construction lending partner before closing. It’s a one-time process. Email us at info@professorlending.com and we’ll guide your builder through it. Required registration documents include:
- Completed builder/retailer application
- Contractor’s Performance Agreement
- Builder’s/Retailer’s license(s) (contractor, retailer, installer, as applicable)
- Certificate of Insurance — General Liability (Acord 25 Form, minimum $1,000,000 per occurrence)
- Certificate of Insurance — Worker’s Compensation (or explanation if not required)
- Builder’s Risk Insurance (required per project — standalone or combined with borrower’s HOI)
- Site-Built Builders: Most recent 2 years federal tax returns, YTD P&L, current company balance sheet
- Site-Built Builders: Executive summary of company experience and principals
- VA Loans: VA Builder Registration confirmation and VA Builder ID number
Let’s Talk Construction
Ready to Start Building?
Whether you’re a homebuyer building your dream home or a builder financing your next project — let’s find the right structure for how you build.