October 24, 2021

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Buy or Build A Home With An FHA Mortgage In 2020

Buy or Build a House On Your Own Lot in 2020

Are you thinking about becoming a homeowner in 2020? Some borrowers have an advantage when getting financially ready for their FHA loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Preparing early is the key to the most seamless loan process possible.

Are you ready to start exploring your options? Or are you just getting started with your credit reports, debt-to-income ratio, budgeting for the down payment and closing costs, etc.?

Ask Yourself The Right Questions About Your FHA Home Loan

How long have you been planning and preparing for the new loan? This is a very important question–without enough time to sort out potential problems on your credit report (identity theft, outdated information, incomplete or wrong details, etc) or lowering your debt-to-income ratio, you could be cheating yourself out of a better home loan deal.

You will need at least 12 months to save, budget and research for your new home loan, and if you want to build on your own land with an FHA One-Time Close Construction Loan, you may need some extra time to find contractors, architects or house plans, etc..

Do you have a specific neighborhood or city in mind for your new home? What about the size and type of home you want? Condos, mobile homes, and other options are all available from the right participating FHA lender.

Other important questions include how long you plan on staying in the home, and whether or not your future plans include putting that home back on the market before you pay off your mortgage. The answers can affect the type of loan you choose, whether it’s a fixed-rate, Adjustable Rate Mortgage (FHA ARM) or other options.

How Much Do You Know About Your Finances?

Do you know your FICO scores? Those who do not have a big disadvantage and are not truly ready for a home loan.


Your participating FHA lender is required to check your credit history and FICO scores, and while those with scores below 640 may technically qualify for an FHA mortgage under the rules found in HUD 4000.1, lender standards also apply that may affect the range of scores eligible for maximum financing. You want to know what the lender is going to learn from your credit report…before the lender does.

Want More Information About One-Time Close Loans?

One-Time Close Loans are available for FHA, VA and USDA Mortgages.  These loans also go by the following names: 1 X Close, Single-Close Loan or OTC Loan.

We have done extensive research on the FHA (Federal Housing Administration), the VA (Department of Veterans Affairs) and the USDA (United States Department of Agriculture) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.

FHANewsblog.com provides information and connects consumers to qualified One-Time Close lenders in an effort to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.

Please note that investor guidelines for the FHA, VA and USDA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs:  Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.

Your email to onetimeclose@fhanewsblog.com authorizes FHAnewsblog.com to share your personal information with a mortgage lender licensed in your area to contact you.

  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 and/or the Co-borrower’s credit profile: Excellent – (680+), Good – (640-679), Fair – (620-639) or Poor- (Below 620). 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, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio VA will allow – there are no maximum loan amounts as per VA guidelines.  Most lenders will go up to $750,000 and review higher loan amounts on a case by case basis.   If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.

Bruce Reichstein - FHA News Author

By Bruce Reichstein

November 26, 2019

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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About FHANewsBlog.com
FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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