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 Edge Home Finance 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 – Edge Home Finance
NMLS #870441
📞 414-975-2654
✉️ azeman@edgehomefinance.com
🌐 www.adamzmortgageteam.com
🤖 24/7 Mortgage & Real Estate Assistant