Borrowers looking at their FHA home loan options don’t have to feel limited to purchasing an existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up.
These FHA new construction home loans are referred to as Construction-To-Permanent mortgages or, more recently, FHA One-Time Close construction loans.
One-Time Close construction loans are good for borrowers who want a home that is just right, and are not in a hurry to get into their new home. The trade-off for having just the right property built for you is the time it will take from planning to move-in.
The process will take more time, but it is definitely worth it to those who choose this type of FHA mortgage loan.
One-Time Close loans offer much more flexibility in areas such as floor plans, the types of appliances you wish to furnish the home with, garage design where appropriate, and much more.
Certain restrictions may apply for your construction loan depending on the lender. The lender may not let a borrower act as her own contractor, and the number of units you can include in the property may be defined by lender standards.
It’s best to discuss such rules with a loan officer before you commit to the project so that you know the parameters and can work accordingly.
Learn More About FHA One-Time Close Construction Loans Today
We have done extensive research on FHA One-Time Close mortgages and spoke directly to these licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the FHA One-Time Close product well.
Each company has supplied us the guidelines for their product. If you are interested in being contacted by one licensed lender in your area, please respond to the questions below to save time. All information is treated confidentially.
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Please note that the FHA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multifamily units (no duplexes, triplexes or fourplexes).
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your credit score and/or the Co-borrower’s credit score, if known. 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible Veterans? Yes or No. If either of you are eligible veterans, the down payment is $0 up to the maximum VA lending limit for your county. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.