Articles Tagged With: Build On Own Lot

October 29, 2024

Can Veterans Buy Land with a VA Loan?

First of all, the Department of Veterans Affairs does not allow VA lenders to offer standalone land loans utilizing a Veteran’s home loan eligibility. However, you can use the VA-insured loan program to buy land if it’s combined with the construction costs of building a new home. This loan product, known as a VA One-Time Close construction to permanent loan, allows borrowers to roll all the costs into one loan, requires $0 down payment for fully eligible Veterans, and involves just one closing. It’s a popular choice for those building Stick-Builds, modular, and manufactured homes. If you’ve dreamed of building your own home with a licensed general contractor (it cannot be yourself), the VA One-Time Close construction loan is the perfect option to make it happen—all with a $0 down | more...

December 17, 2022

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

By Bruce Reichstein

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...

Build on your own lot. Construction loan basics

May 27, 2021

Construction Loan Options: Comparing One-Time Close Loans

By Bruce Reichstein

Do you dream of building a home? There are affordable options for those who want to build on their own lot or buy land in conjunction with a One-Time Close (OTC) construction loan. One-Time Close mortgages feature a single loan application and a single closing date. Compare that to construction loans that make you apply and get approved twice–once for the construction costs and once for the purchase of the property. Your construction loan options include VA, FHA, and USDA mortgages. One type of loan might be more suitable to certain borrowers than others, but fortunately, there are multiple choices you can make to get the right loan for you. FHA One-Time Close Construction Loans The FHA One-Time Close mortgage is a good choice for those who want more flexible | more...

May 19, 2021

FHA Loan Rules To Build Or Buy A Home

By Joe Wallace

Are you interested in applying for a home loan to build or buy a house of your own? FHA mortgage loan options allow a wide variety of choices when it comes to a first home. And you do not have to be purchasing your first house to use an FHA mortgage–as long as you are buying a home you want to live in as your main address and financially qualify, an FHA home loan may be for you. The range of those FHA loan options may surprise you. Did you know a first-time homebuyer has the option to purchase a condo unit using an FHA mortgage? The condo project may be on or added to an FHA-approved list but starting in 2021 it is also possible to have a loan | more...

Home Loans For Building On Your Own Land

May 11, 2021

Unique FHA Construction Loan Rules

By Bruce Reichstein

It can be more exciting to build a home from the ground up to your specifications than buying existing construction. Some borrowers prefer to have more say in the design of their homes and that’s where an FHA One-Time Close construction loan comes in. If you want to build a home on your own lot using a construction-to-permanent loan, also known as a One-Time Close mortgage (AKA the “single-close” construction loan), you should know that certain home loan rules are different for construction loans than for existing construction mortgages. There are some aspects of construction loans the borrower applying for an existing construction home loan won’t have to deal with, and there are specific rules for unique issues associated with building a home. For example, when applying for an FHA | more...

May 4, 2021

First-Time Borrowers Can Build a Home Instead of Buying One

By Bruce Reichstein

Even a first-time buyer dreams about having a house built especially for them from the ground up. Some taking their house-hunting journey for the first time are surprised to learn that their options include the ability to build a home on your own lot using a One-Time Close construction loan. One-Time Close construction loans, which feature only a single loan application and a single closing date, are offered as conventional mortgages, but also as VA and FHA construction loans. What should first-time home buyers should know about construction loans before committing? Don’t worry, these things won’t discourage you from getting the loan. But knowing some issues in advance may change how you prepare for your new home loan. Down Payments When building your home on your own land, a down | more...

April 12, 2021

Low Down Payment Construction Loans For New And Repeat Borrowers

By Bruce Reichstein

Are you interested in building your home from the ground up? A loan called the One-Time Close construction mortgage can help you as a first-time home buyer or as an experienced borrower. You don’t have to be a first-time borrower to take advantage of a low-down payment or even a zero down payment home loan you can use to build a house on your own lot. Among the first questions you are likely to ask about this type of loan? How much you’ll be required to provide as your down payment. And the answer you get depends on what kind of construction mortgage you seek. Do you know how much money you need to save up for a down payment? That depends on the nature of your mortgage; VA, FHA, | more...

April 7, 2021

FHA One-Time Close Mortgages Compared To VA One-Time Close Construction Loans

By Bruce Reichstein

Lots of people are interested in building a home using a One-Time Close construction mortgage (OTC). This is a great option for military officers, career enlisted members, military retirees, and veterans who want to construct a new home rather than buying somebody else’s house. These construction loans are offered by both the VA and FHA loan programs. But which is better for those who have the option of applyinf for a VA mortgage? Who VA Loans Are For VA loans and the VA One-Time Close construction loan program are intended for veterans and currently serving military members with qualifying minimum time on duty. Surviving spouses (of military members who have died as a result of military service) may also qualify to apply for the VA loan program. FHA loans, including | more...

One Time Close Mortgage Loans: The Base Home Sales Price

March 31, 2021

One-Time Close Construction Loans: Loan Limits

By Joe Wallace

Are you a house hunter who has gotten tired of looking at other people’s dream homes? Do you want to build your home instead of buying someone else’s? The One-Time Close construction loan is a good option for this; the One-Time Close loan eliminates the need for a second loan application and approval process compared to some other types of construction loans. There is more than one type of One Time Close mortgage to choose from–you could be eligible for a One-Time Close construction mortgage in multiple programs. Do you know which one is best for you? USDA One-Time Close Construction Loans We start with the need-based construction loan program offered by the USDA. The USDA One-Time Close construction loan program was created for borrowers on restricted incomes. This construction | more...

FHA Construction Loan Rule Changes In 2021

March 29, 2021

VA One-Time Close Construction Loans For Veterans

By Joe Wallace

Military members and veterans alike do well to explore their One-Time Close options to build a home instead of buying an existing house. There is an FHA One-Time Close loan veterans can use, but there is also a VA One-Time Close construction loan that is more idea for military members and veterans due to the zero-down option for the VA construction loan. Veterans and currently serving military members who are on the fence as to whether they should build or buy should explore their One-Time Close options in addition to looking for existing construction. The VA One-Time Close construction loan, sometimes referred to as a single close construction loan, can provide a distinct financial advantage for military families, retirees, and those who are about to retire or separate from military | more...