October 21, 2019
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.
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. This type of loan allows for you to finance the purchase of the land along with the construction of the home. You can also use land that you own free and clear or has an existing mortgage.
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 to one licensed construction lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.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). You CANNOT act as your own general contractor (Builder) / not available in all States.
In addition, this is a partial list of the following homes/building styles that are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin or Bamboo Homes, Shipping Container Homes, Dome Homes, Bermed Earth-Sheltered Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Tiny Homes, Carriage Houses, Accessory Dwelling Units and A-Framed Homes.
Your email to info@onetimeclose.com authorizes Onetimeclose.com to share your personal information with a mortgage construction lender licensed in your area to contact you.
- Send your first and last name, e-mail address, and contact telephone number.
- Tell us the city and state of the proposed property.
- 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.
- 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 $1,000,000 and review higher loan amounts on a case by case basis. If not an eligible veteran, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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