FHA & VA Construction-to-Permanent Loans in Wisconsin (2025 Guide)
Build your home with one closing and government-backed benefits
Building a home? FHA & VA construction-to-permanent loans in Wisconsin make it simple.
These programs let eligible buyers finance both the build and permanent mortgage with a single closing - saving time, money, and stress. FHA and VA construction-to-permanent loans in Wisconsin each have unique guidelines, so understanding how they differ can help you choose the best path for your build.
FHA Construction-to-Permanent Loans
FHA loans are government-insured and designed for buyers who want flexible credit and lower down payment options.
Here's what to know:
- Down payment: As low as 3.5% if you meet credit requirements.
- Credit scores: Typically 580+, though lenders may vary.
- Owner-occupied only: FHA does not allow investment or second homes.
- Builder approval: Must use an FHA-approved builder with proper licensing and insurance.
- Draw process: Works like a standard construction loan - funds are disbursed in stages as the home is built.
- Permanent phase: After the build is complete and a certificate of occupancy is issued, the loan automatically converts to a 30-year fixed FHA mortgage.
The big advantage? You can lock your rate up front, and with our Union Home Mortgage program, your draw rate equals your final closing rate - no surprise increases during the build.
VA Construction-to-Permanent Loans
For eligible veterans and active-duty service members, the VA construction-to-permanent loan is one of the most powerful ways to build a home.
Here's what sets it apart:
- 0% down payment: You can finance 100% of the build cost with no mortgage insurance.
- Credit flexibility: VA loans often accept lower credit scores than conventional options.
- Builder requirements: The builder must be VA-registered and provide a 1-year builder's warranty.
- Land ownership: You can use the loan to buy land and build or build on land you already own.
- Occupancy: Must be your primary residence.
- Conversion: Once construction is complete, the loan converts seamlessly into your VA fixed-rate mortgage - again, same rate from draw to close under our program.
FHA vs. VA Construction-to-Perm: Quick Comparison
| Feature | FHA | VA |
|---|---|---|
| Down Payment | 3.5% minimum | 0% for eligible borrowers |
| Mortgage Insurance | Required | None |
| Builder Type | FHA-approved | VA-registered |
| Occupancy | Primary only | Primary only |
| Credit Flexibility | 580+ typical | More lenient |
| Rate Advantage | Draw rate = closing rate | Draw rate = closing rate |
| Best For | Buyers with lower credit or small down payments | Veterans or active-duty buyers |
Pro Tips from My Team
- Talk to us early: We'll help you match your builder and plans to the right program.
- Avoid surprises: FHA and VA both have strict documentation and inspection requirements - we'll guide you through each phase.
- Get pre-approved before you break ground: You'll lock your rate, finalize your budget, and ensure smooth builder draws from day one.
Internal Resources
- Construction-to-Permanent Loans in Wisconsin - Top Questions, Straight Answers
- One-Time Close Construction Loans in Wisconsin
External References
- HUD FHA Single Close Construction Guidelines (HUD 4000.1)
- VA Construction Loan Information - U.S. Department of Veterans Affairs
Ready to build your home?
Whether you're going FHA or VA, my team and I can walk you through everything - from builder approval to final closing - and help you lock your rate upfront.
Adam Zeman - Union Home Mortgage
NMLS #870441
📞 414-975-2654
✉️ azeman@uhm.com
🌐 www.mkemortgage.com
🤖 24/7 Mortgage & Real Estate Assistant