September 24, 2020

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Articles in Category: FHA One-Time Close

One-Time Close Construction Loan Mortgage Payments: What You Need To Know

When do mortgage payments begin on a construction loan? If you are building on your own lot with a VA One-Time Close loan or an FHA OTC construction loan, you’ll want to know what you are liable for and when–and you’ll also want to know how delaying your mortgage payments until the home is complete will affect your monthly payments down the road. VA and FHA mortgage loan options include the ability to build a home on your own land using a VA One-Time Close construction loan or the FHA equivalent. One-Time Close loans allow you to build a house on your own land or purchase land in conjunction with building a home.  There is a single application and approval process–these loans are potentially more streamlined and easier to manage | more...

 
Build A Home On Your Own Land With A One-Time Close Construction Loan

Building A Home, Buying A Home

Are you thinking about buying an existing home? Are you considering applying for a construction loan to build a house on your own lot instead? If you are trying to decide whether to build or buy, there are questions to ask before you commit to buying an existing construction property, or choose to apply for a One-Time Close mortgage to build on land you already own or purchase as part of the mortgage. What does it take to select the best option for your needs? There is an advantage to building a home from scratch–borrowers can influence the final outcome of the construction and help determine the nature of the house ahead of time. Some don’t enjoy sorting out such details, they gravitate toward the idea of looking at existing | more...

 
Build On Your Own Lot

FHA One-Time Close Loan Rules: Buying Land To Build On

You can build a home on your own lot, even as a first-time home buyer. Thanks to the FHA single-family loan program, which includes a construction loan option, you can build a home instead of buying an existing construction house AND take advantage of low FHA loan down payment requirements. FHA loan rules require only a 3.5% down payment even for construction loans, making the option to build instead of buy within reach of many who are just now exploring their options for becoming a home owner. But when considering a construction loan it’s good to remember that you don’t have to own land already–not all construction loan borrowers own their own property and need to purchase the lot as part of the loan. Building Your Home With A Construction | more...

 
Who should apply for a construction loan?

Who Should Apply For A Construction Loan?

Who should apply for a construction loan? There are two basic types of borrowers who should consider doing so–the house hunter who wants to build a house instead of buying someone else’s, and those who want to purchase fixer-upper homes and renovate them. The home loan for borrowers who would rather build their home on their own lot is called a One-Time Close (OTC) construction loan. It features a single loan application for both the construction of the house and the purchase of it once completed. Non-OTC construction loans may required two separate loans–one for the construction phase and one for the purchase of the completed house. This makes the process more complicated and having a single loan is definitely an advantage for the OTC version of these mortgages. OTC | more...

 
VA One Time Close Construction Loan

VA One-Time Close Construction Loan Options for Military Veterans Expanded

Some house hunters get fed up with looking for just the right home, while others start out their home loan journey knowing in advance they want a house built for them. What options to these borrowers have? There is an FHA home loan known as the FHA One-Time Close / Single-Close construction loan that lets borrowers apply for a single loan that covers both construction costs and the mortgage itself. The FHA version of this type of construction loan requires the borrower and lender to work together to establish a plan for the project including estimated completion times, interest rates, budgets, and more. Some borrowers aren’t interested in FHA home loans since they have other options; do qualifying military veterans have a VA loan version of the FHA One Time | more...

 
One Time Close Mortgage Loans: The Base Home Sales Price

One Time Close Mortgage Loans: The Base Home Sales Price

There are home loans for borrowers–even first-time home buyers–to allow the construction of a home from the ground up. They are called One-Time Close construction loans and are available from participating FHA, VA, and USDA lenders. One Time close loans, also known as single-close construction loans, feature one loan for both the construction of the home and the purchase of that home. When you apply for a construction loan, one area you’ll soon learn about is something called the base home sales price. This is essentially the base cost of the project using the contractor’s standard designs and features–you choose the design and features and those choices generate a base price. Choosing Features, Materials, Design How do these choices affect cost? Consider the design itself. What is the cost of | more...

 
FHA One-Time Close Construction Mortgage Basics

FHA One-Time Close Construction Loan Rules

What do borrowers need to know about FHA One-Time Close construction loans? There are two very important areas to keep in mind. One involves the lender’s specific requirements to qualify for this single-close construction loan, and the other involves FHA loan rules. The two are not always identical and this is something to be aware of when going into the loan application process. FHA One-Time Close mortgages are different than existing construction loans because the home must be designed, built, and paid for from the ground up and there are varying time frames under which this will be done. Purchasing an existing construction home means getting to move in much more quickly, but the trade-off is that you are purchasing someone else’s home rather than having one built especially for | more...

 
Construction Loans For First-Time Home Buyers

Planning Your One-Time Close Construction Loan

Some FHA loan applicants do not realize they have the ability to apply for a One-Time Close mortgage that lets the borrower build a home on their own lot instead of buying an existing construction home. The FHA One-Time Close (OTC) construction loan, like its’ VA construction loan counterpart, is a loan backed by the government that allows the borrower to apply for a single mortgage loan to cover both the costs of construction of a home from the ground up and the purchase of the home.  This is offered as an alternative to construction loans that require two loan applications (one for construction, one for the completed home) and two closing dates. OTC Loans Have The Same Down Payment Requirements As Other FHA Loans The One-Time Close loan avoids | more...

 
Build on your own lot. Construction loan basics

First-Time Home Buyers: Build Your New Home With A One-Time Close Construction Loan

Buying a home can be challenging for some first-time borrowers. Many newcomers to the mortgage market don’t know all their options open and in that situation it is easy to make choices that are less than fully-informed. One-Time Close construction loans are open to any financially qualified applicant and that includes FHA borrowers who have never purchased a home before but have good FICO scores and repayment history that has no late or missed payments in the last 12 months or better. One-Time Close loans are offered as FHA, VA, and even USDA mortgages. The FHA version is NOT need-based and features no income caps, unlike the USDA version. VA construction loans are intended only for qualifying military members, veterans, and certain surviving spouses of military members. For the average | more...

 
Construction Loans For First-Time Home Buyers

Building A Home As A New Borrower

At press time, many portions of the United States are considering some kind of return to business as usual in the wake of lockdowns and coronavirus containment measures.  For better or worse, some portions of the country are opening more than others and this will likely include real estate markets and house hunting as progress is made. And that means some first-time home buyers will be exploring their options soon. Did you know that even as a first time borrower, you may be eligible for a One-Time Close construction loan that allows the borrower to build a home on their own lot rather than buying someone else’s property? One-Time close loans are available for VA borrowers, FHA loan applicants, even USDA borrowers. These loans do require some additional legwork and | more...