March 7, 2021

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Articles in Category: FHA One-Time Close

Which Construction Loan Is Right For You?

There is a kind of home loan called a One-Time Close construction loan that lets you build a home on your own lot. There are government-backed One-Time Close construction loans offered including a USDA version of the One-Time Close construction loan, a VA Loan allowing you to do the same thing, and an FHA One-Time Close construction loan.  The One-Time Close mortgage features a single application and closing date for the entire process–compare that to construction loans that feature one application and one closing date for the construction phase plus a separate application and closing date for the purchase of the property once it has been built.  This is NOT how the process works with the One-Time Close loan which makes this process easier for borrowers and lenders by eliminating | more...

 
FHA Construction Loan Rule Changes In 2021

One-Time Close Construction Loan Advice

If the idea of building a home instead of buying somebody else’s property appeals to you, the One-Time Close construction loan allows you to build a home from the ground up on your own lot (or on land you buy in conjunction with the mortgage). Building a home with plans you approve has plenty of advantages, but it also requires some extra consideration. It’s not terribly complicated to anticipate some important factors associated with your construction loan but it does take some time to get the information you need to make the most informed choices possible for your new home. If you want to build a home on your own lot instead of buying an existing house, the FHA One-Time Close construction mortgage is an option you should seriously consider. | more...

 
Construction Loans For First-Time Home Buyers

Home Loan Approval: Documents You Need To Get There

What’s the most important thing you can do in the planning stages of a new home loan? It really does not matter whether you might be contemplating buying a home with an FHA mortgage or building one on your own lot using an FHA Construction Loan known as the One-Time Close mortgage; there are some documents you will need to gather in the planning stages to help you get closer to loan approval. Some of these documents are no surprise–your most recent pay information is a good example. Your lender will want to see verification of your current income. What is not so obvious? The reality that your loan officer might ask you to provide details about a salary or other income information from your previous employer, especially if you | more...

 
Buy or Build a House On Your Own Lot in 2020

FHA One-Time Close Construction Loan Advice: Hiring A Builder

If you want to build a dream home on your own lot instead of buying somebody else’s house, the One-Time Close construction mortgage is an option you should explore. These loans require you to hire a builder (more on that below) and this is a part of the process that can be a bit intimidating for some borrowers until they learn there are some basic steps to follow that will make your hiring process a lot more hassle-free. Why Hire A Builder? Why go thru the trouble to find a qualified and reputable contractor to do the construction work for you? Why doesn’t the borrower act as their own builder or hire friends and family to pitch in? The answer is simple. For a start, most borrowers likely don’t have | more...

 
One Time Close Mortgage Loans: The Base Home Sales Price

One-Time Close Mortgages Compared To Other Home Loans

How do One-Time Close Loans differ from other mortgage types? There are FHA One-Time Close loans, VA construction loans, and USDA versions. How do the construction loans differ from buying someone else’s home? The first way they differ is time–it takes more time to get the key and move in when you build a home from the ground up than it does to buy existing property. But the time you spend building is worth the investment–you get to approve the design of the home you are moving into, and that’s a big deal for some house hunters. Build Or Buy? Deciding isn’t hard for some people–they want the ability to customize.  There are FHA loan options for doing so that don’t require you to commit to building from scratch–some choose | more...

 
Home Loans For Building On Your Own Land

One-Time Construction Loan Amortization: What You Need To Know Before You Sign

The FHA One-Time Close construction loan allows you to have a house built to your specifications rather than buying an existing home. This loan, which also has a VA mortgage counterpart as well as a USDA version, gives borrowers the ability to choose a specific design instead of settling for one you aren’t as interested in. An One-Time Close loan, which is offered to first-time home buyers and experienced home owners alike, provides the means for you to build on your own lot. You can also choose to purchase land with the loan funds as well as building the home. One Time Close loans can take longer depending on how fast the construction phase of the loan goes, but the ability to approve the design and features of the home | more...

 
Construction Loan Advice For New Borrowers

Getting Ready For A Construction Loan in 2021

You can use an FHA One-Time Close construction loan, (or a VA construction loan or even a USDA OTC mortgage) even a first-time home buyer to choose to build a new home on your own land or land you buy in conjunction with the loan. This is an option for those who want a house with designs they have approved instead of buying someone else’s existing property. Getting Your Loan Started Finding a participating FHA lender (or a VA or USDA lender depending on the loan you choose) is an important part of the construction loan process. You should also know that while construction loan mortgages do require higher FICO scores, and need more time before move-in day than a typical home purchase loan, the end results are well worth | more...

 
Mortgage Rate Trends

Low FHA Mortgage Rates In 2021

January of 2021 brought some anticipation about what might happen with home loan interest rates. Would conditions become less volatile and more stable? Would rates start to rise along with investor certainty in the markets that influence mortgage rates? Does fear and uncertainty persist in the new year? Some professional market watchers wrote (in the early days of January 2021) that mortgage rates got started this year minus volatility (at least early)…FHA loan rates on 30-year fixed-rate mortgages are reported in January 2021 below the three percent range–so far, fairly “typical” of what people have come to expect during the pandemic. At the time of this writing, you’ll find FHA mortgage loan interest rates are reported at 2.25% for “best execution” loans which have ideal conditions including a well-qualified borrower. | more...

 
FHA One-Time Close Loan

FHA One-Time Close Construction Loans: Five Facts You Should Know

You don’t have to purchase someone else’s house–you can use an FHA construction loan to build your dream home to your specifications using plans you approve. The FHA One-Time Close construction loan makes it easier by eliminating the two-loan process, consolidating the construction loan into a single application, a single approval process, and a single closing date. Construction Loan Fact One: Multiple Options FHA One-Time Close mortgages are not the only option; there are several different types of One-Time Close loans, also known as single-close construction loans. There’s the FHA version, but also a USDA construction loan for those who demonstrate financial need, and a VA construction loan version for those with qualifying military service. And these construction loans are available for any financially qualified borrower who meets program standards. | more...

 
FHA Construction Loan Rule Changes In 2021

FHA And HUD Update Construction Loan Rules

If you are in the market for a home but would prefer to have a house built to your specifications instead of buying another person’s dream home, the One-Time Close mortgage can help you build instead of buy. This type of loan has an FHA equivalent with low down payment requirements (3.5% in typical cases) and there’s also a VA home loan option for those with qualifying military service. The FHA and HUD recently updated its rulebook for FHA Construction loans; there are revised definitions of properties that qualify for construction loans as well as new inspection rules. Back in 2020, the FHA and HUD announced some pending changes to the FHA Single-Family Home Loan Lender’s Handbook, HUD 4000.1 due to policy alterations in 2018 and 2019. Those alterations required | more...