Those who are ready to buy a house, or build a home on their own land using an FHA construction loan are considering their options at a time when mortgages are said to be as much as $200 cheaper than this time last year (depending on the price, down payment, and other factors).
Mortgage rates in general are lower now than predicted last year and the rates are, according to some market watchers, due to remain low in November 2019 if the predictions come true.
There are a variety of factors affecting mortgage loan interest rates at the moment; Brexit has an effect on investor behavior that can influence mortgage rates, the tariff war with China is another variable.
Add to that consumer behavior in U.S. housing markets, and the debate at the Fed over whether to consider yet another interest rate cut and you have conditions ripe for some interest rate changes that may or may not affect the borrower depending on where she is at in the loan approval process.
At the time of this writing, mortgage loan interest rates are still low at 3.375% for FHA mortgages (for the most well-qualified borrowers) and those low rates apply to both new purchase loans for existing construction and refinance loans for cash-out.
But those rates are also used with FHA One-Time Close construction loans, FHA-to-FHA Streamline Refinancing, and FHA Simple Refinances. Low rates benefit many different kinds of borrowers.
If you are ready to fill out the loan paperwork for an FHA construction loan, FHA condo loan, or an FHA refinance loan, interest rates are at the time of this writing very borrower-friendly. You should have a look at the current rates, and then review the FHA loan limits for 2019 in your housing market to get an idea of how much you should expect to borrow in your area.
Could the lower rates push some borrowers closer to building a home on their own property instead of buying someone else’s house?
There are no guarantees with mortgage rates in terms of where they might go from day to day. A one-day dramatic shift in mortgage rates is not unheard of, but in general it may take many days of sustained movement in one direction or another to firmly establish a higher or lower rate trend in the mid-term
If you are ready to learn more about building your own home with your own design, read below.
Learn More About VA, FHA, Or USDA One-Time Close / Single-Close Construction Loans Today
We have done extensive research on FHA, VA and USDA 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.
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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 so, 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.