Articles in Category: FHA One-Time Close

November 13, 2019

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

A construction loan to build a house on your own land is not out of reach even for a first-time homebuyer. There are multiple options for building a home from the ground up; you can apply for an FHA One-Time Close loan, a VA construction loan, and there are even USDA construction loans that allow qualified borrowers (this is a need-based loan) to build a house instead of buying an existing one. But there are some mistakes some house hunters make when pursuing a construction loan you should avoid; sidestepping these can definitely help you save time and money. Save Early For Your Down Payment Some construction loans (VA and USDA) have no down payment requirement. All others do. And even the VA and USDA equivalents of an FHA One-Time | more...

Home Loans For Building On Your Own Land

November 8, 2019

FHA Loan Appraisal Requirements: Repairs

By Bruce Reichstein

FHA loan rules require an appraisal of the property secured by the mortgage regardless of whether it’s an existing construction home or if you choose to build on your own land using a One-Time Close loan. Do you know what the home loan rules say about any required repairs or corrections? You may not expect an appraisal-directed repair from a new construction home. But if the FHA appraiser finds something that does not meet local building code, or if there was some kind of damage uncovered during the appraisal (these are just two examples of what could happen at appraisal time on a new construction home) those issues must be corrected. HUD 4000.1, the FHA Single-Family Home Loan Handbook, instructs the lender that in cases where the appraisal uncovers things | more...

October 28, 2019

Home Loans For Building On Your Own Land

By Bruce Reichstein

If you do not want to buy existing real estate or hire a realtor, and prefer to design your own home (or have one designed for you), a One-Time Close (OTC) construction loan is for you. These loans are named “One-Time Close” because unlike some construction loans that require two applications, two approvals, and two closing dates, One-Time Close mortgages have ONE loan for both the construction of the home and for the mortgage itself. These construction loans are available under several government-backed lending programs such FHA One-Time Close construction loans, VA Construction loans, and the USDA equivalent. VA and USDA loans have no down payment requirement, but VA mortgages are not for the general public (qualifying veterans, currently serving troops, and certain surviving spouses of military members who died | more...

October 24, 2019

The FHA Loan That Helps You Build On Your Own Lot

By Bruce Reichstein

The FHA One-Time Close construction loan FHA One-Time Close Loan is a mortgage that lets the borrower design and build a home on the borrower’s own land. If you would rather build a home rather than look at real estate listings for an existing construction house, the One-Time Close loan is for you. There is an FHA version of the One-Time Close construction mortgage that requires a low 3.5% down payment. There is also a version of this construction loan offered by the VA to qualifying veterans and currently serving military members. The VA One-time Close construction loan has a 0% down / zero-down option. No money down is required for a VA construction loan up to the VA loan limit. See the end of this article for more information | more...

October 21, 2019

FHA Mortgage Rates For The Rest Of 2019

By Joe Wallace

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 | more...

October 18, 2019

FHA Loans For Buying, Building, Or Assembling A Home

By Bruce Reichstein

Did you know that FHA home loans can help you buy an existing home as a first-time home buyer, but can also help a first-timer or experienced homeowner have a house built for them from the ground up on your own lot or a lot you purchase in connection with the mortgage. It’s also possible to have a manufactured home assembled for you on a lot you purchase or already own. These loans, especially the FHA One-Time Close mortgage for building a home from the ground up, are offered to both experienced borrowers and first time home buyers alike with no difference in the basic terms and conditions. That means that a first-time borrower is not penalized for being a first-timer; there are no elevated down payment requirements, no added | more...

October 16, 2019

Build On Your Own Land: The FHA One-Time Close Construction Loan

By Bruce Reichstein

The FHA One-Time Close construction loan allows a borrower to build a home from the ground up, including loan applicants who want to build on their own land with an FHA construction loan. What do borrowers need to know about the FHA One-Time Close loan? To begin, this type of FHA home loan is available to all qualified borrowers who want to build approved properties; the first-time home buyer is just as welcome to apply for an FHA construction loan as an experienced borrower. For this type of loan, the time you would spend house hunting will be spent contracting with a builder (who must be a licensed general contractor), working with floor plans, and planning the construction of the home rather than going out to search for an existing | more...

Coronavirus And Home Loan Appraisals: What You Need To Know Now

July 15, 2019

VA One-Time Close Construction Loan Tips

By Bruce Reichstein

There are plenty of VA One-Time Close (VA OTC) / Single-Close construction loan tips you should know about-probably as many as for FHA One-Time Close loan or the USDA One-Time Close equivalent. Did you know that the size of your project could affect your ability to get a no-money-down VA home loan? Or that you should discuss the amount of time your VA OTC loan might take with the seller of the land if you are purchasing land and building the home? Know these issues before you apply for best results when you are ready to commit to your VA construction loan. VA One-Time Close Construction Loans / Single-Close Construction Loans Require A Contractor VA loan rules for construction loans require the borrower to hire an outside contractor rather than | more...

What Credit Score Is Needed For An FHA Mortgage?

June 24, 2019

Five Tips For FHA One-Time Close Mortgages

By Joe Wallace

One-Time Close Construction Loans May Take Longer To Close Than A Purchase Loan For Existing Construction You should discuss the amount of time your FHA OTC loan might take with the seller of the land if you are purchasing land and building the home. Timelines may be very important depending on circumstances. Find out how long the loan may take to close in your area and discuss this with the seller to see if the time frame is acceptable. Contractors For One-Time Close Construction Loans / Single-Close Construction Loans FHA construction loans include certain lender requirements that can vary depending on the lender. Borrowers should anticipate having to hire an outside contractor rather than trying to do the work personally. The builder and borrower will have to work together to | more...

June 20, 2019

FHA Construction Loan Facts

By Bruce Reichstein

Some borrowers, including some first-time home buyers, don’t want to buy someone else’s house. They prefer a home built to suit; real estate built from the ground up using borrower-approved plans. This kind of home loan is available as an FHA mortgage from participating FHA lenders. It is called an FHA One-Time Close construction loan and it is an excellent alternative to buying an existing construction house. What do you need to know about FHA One-Time Close Construction Loans? For starters, these loans do not have a different down payment requirement than other FHA mortgages-the same low down payment options exist for borrowers with qualifying FICO scores. Your lowest possible down payment on a home built using an FHA construction loan is the same 3.5% as other FHA mortgage options. | more...