Introduction
The typical path to a custom home in Pensacola feels less like a straight line and more like an obstacle course. If you follow the traditional route, you are essentially forced to buy your home twice. First, you apply for a short-term construction loan to pay the builder. Then, once the house is finished, you have to go through the entire mortgage application process again to “refinance” into a permanent 30-year loan.
That means two sets of closing costs. Two applications. Two credit checks. And the constant anxiety that interest rates will rise while your home is being built, making your final monthly payment much higher than you planned.
At EZ Modern Homes, we believe that is a waste of your time and your hard-earned money. As a Veteran-owned builder, we specialize in a better way: the VA One-Time Close (OTC) Construction Loan. This unique financial tool allows you to secure your land, your build, and your permanent interest rate in one single event before we ever break ground. If you are ready to stop paying double and start building with confidence, it is time to master the one-time close. If you’re ready to see how this simplifies your build,
[let’s review your VA eligibility together].
Key Takeaways:
- One and Done: The OTC combines construction and permanent financing into a single loan with one closing.
- Rate Lock Security: You lock in your 30-year interest rate before construction starts, protecting you from market spikes.
- Save Thousands: By closing only once, you avoid paying double the loan origination fees and administrative costs.
- Builder Precision: This process requires a highly organized, VA-registered builder to provide the level of detail lenders demand upfront.
The “Double Close” Trap: Why Standard Building is Stressful
In a conventional two-close scenario, the transition from construction to move-in is fraught with risk. The construction loan is usually a variable-rate, interest-only product that only lasts for the duration of the build.
The problem? You don’t know what your “real” mortgage payment will be until the very end. If interest rates jump from 6% to 8% while we are framing your house in Navarre, your long-term financial plan could be ruined. Worse, if your credit score dips or you change jobs during the build, you might not even qualify for the permanent loan once the house is done.
The VA One-Time Close removes this entire “refinance risk”. You qualify for the full 30-year mortgage on day one. You know exactly what your principal and interest will be before the first shovel hits the dirt. This level of certainty is exactly what we mean when we talk about Military Precision in your project’s financial planning.
How the VA One-Time Close Saves Your Cash
Building a custom home in Florida already requires significant upfront investment for things like site preparation and architectural plans. The last thing you need is to spend an extra $5,000 to $10,000 on redundant bank fees.
Because the VA OTC loan is a single transaction, you only pay for:
- One Title Policy: No need to buy a second policy when the home is finished.
- One Appraisal Fee: The VA appraiser values the home “subject to completion” from the start.
- One Recording Fee: Only one set of documents needs to be filed with Escambia or Santa Rosa County.
For many of our clients in Gulf Breeze and Pensacola, these savings are the difference between standard countertops and the luxury quartz they actually want. By choosing a streamlined financing path, you are effectively putting more “home” into your budget. If you want to see a side-by-side cost comparison of OTC vs. two-close loans, contact us for a financial strategy session.
The Rate Lock Advantage: Peace of Mind in a Volatile Market
We have all seen how quickly the market can shift. When you build a custom home, the construction phase typically lasts 8 to 14 months. That is a long time to leave your interest rate to chance.
With the VA OTC, your permanent interest rate is locked in at the time of closing before groundbreaking. Some of our partner lenders even offer a “float down” option, meaning if rates happen to drop while we are building your home, you might be able to snag the lower rate before the loan fully converts to permanent status.
It is a “heads you win, tails you win” scenario. If rates go up, you’re protected. If rates go down, you might save even more. This financial safety net allows you to focus on the exciting parts of the build, like our Custom Home Design Services, without checking the 10-year Treasury yield every morning.
Why Lenders Demand a Builder Like EZ Modern Homes
There is a reason you don’t hear about the One-Time Close from every builder in town. It is administratively heavy for the contractor.
To approve an OTC loan, the lender needs a “Builder Package” that includes:
- A Valid VA Builder ID: We are already registered with the Department of Veterans Affairs.
- Hard Bids: No vague estimates. The lender needs a fixed construction contract with every finish specified.
- Detailed Schedules: A line-item timeline showing exactly when every “draw” will occur.
Most builders run from this level of scrutiny. At EZ Modern Homes, we embrace it. We use JobTread to provide the radical transparency lenders require. Our schedules aren’t guesses; they are tactical plans that give banks the confidence to fund your 100% $0-down dream. We handle the paperwork with the bank so you can focus on the floor plans.
The Draw Schedule: Performance-Based Building
A common fear with the OTC loan is, “If the bank pays the builder at the beginning, what motivation do they have to finish?”
That is a misconception. The bank doesn’t pay us upfront. The money is held in an escrow account. We only get paid in “draws” after we complete specific milestones like the foundation, framing, or dry-in and after you personally sign off on the work.
This “pay-as-you-go” system protects your investment. It ensures that the value of the work on your lot always exceeds the amount of money disbursed. Using our digital portal, you can see the exact status of every draw request, the inspection photos that triggered it, and the remaining balance of your loan. You are the commanding officer of your project’s budget.
Building Your Multi-Generational Legacy
Many veterans use their benefit to build more than just a house; they build a family hub. Whether you are adding a secondary dwelling unit for your parents or designing a home with Dual Primary Suites, the OTC loan can cover the entire compound in one single mortgage.
This allows you to create a high-value asset in a growing market like Pensacola or Navarre while keeping your monthly overhead predictable. You aren’t just building for today; you are future-proofing your family’s stability.
Don’t let a disorganized builder force you into an inefficient financial path. Your VA benefit is a precision tool—use it with a builder who understands how to maximize it.
“In the military, we look for ways to eliminate redundant systems. The One-Time Close is the ‘lean’ way to build a custom home. It removes the waste, lowers the risk, and gets you into your new life faster.” — John K. Griffin, Founder, EZ Modern Homes
Your Next Step
The “Double Close” is a choice, not a requirement.
If you have your COE and a vision for a modern custom home, don’t let a lender or builder push you into a more expensive, higher-risk two-close loan. Let us connect you with our specialist lending partners and show you how an OTC build can save you time, money, and stress.
[Schedule Your Free One-Time Close Consultation with EZ Modern Homes]
Frequently Asked Questions
Can I use a One-Time Close loan if I don’t own land yet? Yes! You can find a lot in Pensacola, Gulf Breeze, or Navarre and include the purchase of that land in your One-Time Close loan. The loan pays the land seller at the initial closing, and construction funds are set aside for the build.
Are there payments due during the construction phase? One of the best features of many VA OTC products is that the lender may allow you to defer your full mortgage payments until construction is complete. This prevents you from having to pay rent and a mortgage at the same time during the build.
What is the minimum credit score for a VA OTC loan? While the VA doesn’t set a minimum, most OTC lenders typically look for a score of 620 or higher. Because these are complex loans, lenders prefer candidates with stable income and manageable debt-to-income (DTI) ratios.
Do I need a separate appraisal after the house is done? No. The “Subject to Completion” appraisal performed at the beginning is typically the only appraisal required. A final inspection is conducted at the end to ensure the home was built according to the original plans and specs.
Can I build a “tiny home” or unconventional structure with an OTC? The property must meet the VA Minimum Property Requirements (MPRs). This generally means it must be a permanent structure on a fixed foundation with adequate facilities for living, sleeping, and sanitation. Our modern designs are engineered specifically to meet these federal standards.
About the Author
The EZ Modern Homes Editorial Team EZ Modern Homes is a Veteran-Owned custom home builder based in Pensacola, Florida. Led by founder John K. Griffin (Florida License #CRC1332852), we are one of the few local builders specifically organized to facilitate VA One-Time Close construction loans. By combining military-grade project management with cutting-edge JobTread technology, we provide the radical transparency that lenders and military families deserve. Serving Escambia and Santa Rosa counties, we specialize in high-performance modern residences that are as financially smart as they are architecturally stunning.
