January 9, 2020
What kind of home loan do you need in 2020? You can build on your own lot with an FHA One-Time Close construction loan, you can apply for an FHA mortgage to purchase a mobile home or manufactured house, and you can even find an FHA mortgage for a fixer-upper property.
These loans are not need-based, have no income caps, and feature a low down payment requirement. What kind of home loan do you need?
Houses You Can Buy And Occupy Right Away
Referred to in the real estate industry as an existing construction home, these properties are sold assuming they meet current appraisal and building code regulations or can be brought into compliance without a great deal of difficulty.
Existing construction homes have been built for at least one year, and have at least one owner.
Homes You Can Build On Your Own Land
New construction means applying for a specific type of mortgage loan to let you build on your own land; the FHA One-Time Close construction loan.
These loans allow you to build the house using approved contractors and a floor plan you select and features the same low down payment requirements as existing construction loans.
Homes You Can Buy To Repair
There are FHA home loans (and refinance loans) that can help you buy or refinance a home at the same time you apply for funds to fix it up. These are called Rehabilitation Loans, or FHA Rehab Loans. The technical name of the loan is the FHA 203(k) Rehabilitation Mortgage.
These loans still require the home to be brought into compliance with local building code and FHA standards, but that is the job of the rehab loan projects paid for by the mortgage.
Condo Units, Mobile Homes
Mobile home loans and condo loans alike may be offered by participating FHA lenders who choose to do so.
Mobile home loans have their own unique requirements as do condo loans, but one thing is consistent with both; these FHA mortgages have identical down payment requirements.
Additionally, your credit history, employment, and debt ratios will play important roles in determining interest rates and other terms.
Condos and mobile homes aren’t loans you can get at all participating lenders; some choose not to offer these or other mortgages. It always pays to review several lenders at once to see who offers the most competitive rates and terms.
Learn More About VA, FHA, Or USDA One-Time Close / Single-Close Construction Loans Today
We have done extensive research on FHA, VA and USDA One-Time Close / Single-Close mortgage loans and spoke directly to the licensed lenders for most states. These are qualified mortgage loan officers who work for lenders that know the product well.
Each company has supplied us the guidelines for their product. If you are interested in being contacted by one licensed lender in your area, please respond to the below questions to save time.
All information is treated confidentially.
Your response to [email protected] authorizes us to share your personal information with a licensed mortgage lender in your area to contact you.
Please note that the One-Time Close / Single-Close Construction Program only allows for single-family dwellings (1 unit) – and NOT for multifamily units (no duplexes, triplexes or fourplexes).
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 credit score and/or the Co-borrower’s credit score, if known. 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If so, the down payment is $0 up to the maximum VA lending limit for your county. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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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