Build a new home in an eligible rural area with up to 100% financing.
A USDA one-time close construction loan may let income-eligible buyers finance the lot, the build, and the permanent USDA mortgage with one closing in eligible rural areas. Parts of Placer, El Dorado, Yolo, and Sutter counties may qualify. Ken Clark Jr. helps buyers plan USDA construction through PRMG programs where available.
Short answer: it is a USDA-guaranteed loan used to build a new primary residence in an eligible rural area, commonly as a one-time close loan with one closing.
Check the address on the USDA eligibility map before you commit to a lot. More on USDA loans and Yolo County USDA.
Short answer: USDA may allow up to 100 percent financing for eligible buyers, meaning no down payment.
USDA charges an upfront and annual guarantee fee. Household income must be within the limit for your county.
Short answer: USDA one-time close commonly sets up a payment reserve at closing that covers payments during construction, so you are not making separate payments out of pocket in most cases.
The reserve is sized to the construction term plus a short cushion. You typically pay property taxes that come due during construction.
| Requirement | Generally |
|---|---|
| Location | USDA-eligible rural area |
| Income | Household income within the county limit |
| Credit | Minimum scores for USDA one-time close are commonly higher than standard USDA purchase loans, often around 650, depending on program guidelines |
| Occupancy | Primary residence, one unit |
| Debt-to-income | USDA guidelines and automated findings |
Short answer: yes, subject to program guidelines. The lot can be purchased at closing, or an owned lot can be included with any land loan paid off.
See buying land and building for the lot checklist, especially well, septic, and access on rural parcels.
| Home type | Generally |
|---|---|
| Site-built (including panelized) | Eligible |
| Modular | Eligible |
| Multi-section manufactured on a permanent foundation | May be eligible, with added requirements |
| Single-wide manufactured | Commonly ineligible |
| Barndominium, post-frame, log, metal, container | Commonly ineligible on government one-time close |
One-unit, owner-occupied homes. Acreage limits may apply, commonly around 10 acres for manufactured homes.
Short answer: your builder must be licensed, act as the general contractor under a fixed-price, turnkey contract, and complete builder registration. Owner-builder and do-it-yourself projects are not eligible.
Builder registration is a documentation review for program eligibility, not an endorsement of the builder. It is commonly completed once, before the first project. Details: builder registration.
From application to closing commonly takes about 60 to 75 days or more, because the builder, plans, and appraisal all have to come together.
Where available: PRMG one-time close programs are available in every state where PRMG is licensed, which is all states except New York, subject to eligibility and program guidelines. In California, building, well, and septic permits are typically required before closing.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
Possibly. USDA one-time close construction financing may be available for income-eligible buyers building a primary residence in an eligible rural area, subject to program guidelines and availability.
USDA may allow up to 100 percent financing for eligible buyers.
A payment reserve is commonly funded at closing to cover payments during construction. You typically pay property taxes that come due during construction.
Limits depend on your county and household size. Check the USDA eligibility site or ask us to run it.
Often yes, subject to program guidelines.
No. USDA one-time close requires a licensed builder acting as the general contractor under a fixed-price contract.
Multi-section manufactured homes on a permanent foundation may be eligible, with added requirements.
Yes. PRMG one-time close programs are available in California and every other state where PRMG is licensed (all states except New York), subject to eligibility and program guidelines. In California, permits are typically required before closing.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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