One-Time Close Construction Loans May Take Longer To Close Than A Purchase Loan For Existing Construction
You should discuss the amount of time your FHA OTC loan might take with the seller of the land if you are purchasing land and building the home.
Timelines may be very important depending on circumstances. Find out how long the loan may take to close in your area and discuss this with the seller to see if the time frame is acceptable.
Contractors For One-Time Close Construction Loans / Single-Close Construction Loans
FHA construction loans include certain lender requirements that can vary depending on the lender.
Borrowers should anticipate having to hire an outside contractor rather than trying to do the work personally. The builder and borrower will have to work together to submit plans and specs for the construction project.
FHA One-Time Close Mortgages / Single-Close Mortgages May Require Extra Processing Time
Building a home from the ground up requires time and you should not be in a hurry with an FHA construction loan. Borrowers should anticipate up to 60 days for processing but this may vary depending on a variety of factors.
Advice For Buying Land And Planning Your Construction Loan Project
For best results, consider building on land that is NOT larger than what would be considered ‘standard and customary’ in your housing market. Ignoring this advice could result in an appraisal that mentions “excessive land”. Ask your lender what the implications of that might be for your loan.
Learn More About FHA One-Time Close / Single-Close Construction Loans Today
We have done extensive research on FHA One-Time Close / Single-Close mortgage loans and spoke directly to the licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the 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 below questions to save time. All information is treated confidentially.
Your response to firstname.lastname@example.org authorizes us to share your personal information with a licensed mortgage lender in your area to contact you.
Please note that the One-Time Close / Single-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? If either of you are eligible veteran’s, 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.