Articles Tagged With: Build On Own Lot

Construction Loan Advice For New Borrowers

March 24, 2021

FHA Loan Down Payments: Some Simple Rules

What do you need to know about FHA loan down payment requirements? First, in most cases, a down payment is required, and your down payment requirements are dictated in part by your credit scores. But you also need to know that your down payment could be waived if you are applying for a construction loan and have land equity to use instead. There are FHA loan rules you should know while you are still in the planning stages of an FHA purchase loan. These will help you decide what to do about saving up for a down payment and dealing with certain closing costs. Basic Down Payment Rules As stated above, FHA loan rules usually require a minimum 3.5% down payment for all single-family mortgage loan transactions. But don’t overlook | more...

Home Loans For Building On Your Own Land

March 18, 2021

One-Time Close Construction Loan Advice For New Borrowers

By Joe Wallace

If you have never explored your options to build a house on your own lot with a One-Time Close construction loan, you might be surprised to learn that these loans are open to first-time borrowers and experienced home owners alike. Construction loans have great advantages for those who want to build a primary residence. But there are often important questions borrowers need to be answered before they can make an informed decision on building on their own lot. VA One-Time close mortgages for military members and veterans offer a no downpayment option, and FHA One-Time Close mortgages have a low 3.5% downpayment requirement. And the down payment issue is where we get started with our home loan advice. Down Payment Assistance For Construction Loans Most FHA and VA participating lenders | more...

March 11, 2021

FHA One Time Close Construction Loans Versus FHA Rehabilitation Mortgages

By Joe Wallace

There are FHA home loans you can apply for that allow you to build or renovate existing construction. One type of home loan–one that lets you build instead of buying existing construction–is the FHA One-Time Close (OTC) construction loan. An alternative, known as the FHA 203(k) Rehabilitation mortgage and it is used to repair or renovate a home. One-Time Close construction loans and FHA 203(k) Rehab loans are similar–these two loans need approved builders to do the work, and they both require a minimum down payment unless you choose a VA or USDA OTC loan instead. One-Time Close Down Payment Rules FHA One-Time Close loans have a 3.5% down requirement for those with FICO scores within the qualifying range. Borrowers with lower credit scores may be required to put 10% | more...

March 3, 2021

Which Construction Loan Is Right For You?

By Joe Wallace

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

March 2, 2021

One-Time Close Construction Loan Advice

By Bruce Reichstein

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...

Buy or Build a House On Your Own Lot in 2020

January 14, 2021

What Are FHA Energy Efficient Mortgages?

By Joe Wallace

What is an FHA Energy Efficient Mortgage (EEM)? Whether you want to buy existing construction or choose to build a house on your own lot using an FHA One-Time Close mortgage, the FHA EEM can add funds to your loan. You read that correctly–these funds are added only after the loan amount has been calculated–this is an add-on to your loan and not a higher loan amount to qualify for (see below) Are you a first-time home buyer? Don’t mistake an Energy-Efficient Mortgage as a type of home loan option like an FHA Construction Mortgage or FHA Rehabilitation Mortgage. As mentioned above, an EEM is quite different. Why EEM Funds Are Added After Your Loan Amount Is Calculated The Energy Efficient Mortgage is an add-for purchase loans including FHA Rehab | more...

One-Time Close Construction Loan Options For Veterans

March 17, 2020

Your Construction Loan Options

By Bruce Reichstein

Build a home instead of buying an existing one? This is a reality and there are plenty of choices to go around; FHA One-Time Close construction loans, the VA construction loan equivalent, USDA construction loans, and even conventional mortgages to build on your own land instead of buying an existing home. These loans all have features that are different than existing construction loans. They include how long it takes for you to move in, when your mortgage payments begin, and the kinds of features your home may have. Construction loans can be a bit more complex than a new purchase loan for a house in a typical neighborhood, and some read articles like this and want to be ready to commit, but an equal number of people read this but | more...

February 12, 2020

Why Buy A Home In 2020?

By Bruce Reichstein

There are many reasons why it’s smart to think about looking for a forever home in 2020; owning instead of renting, the ability to freely customize your living space, being able to apply for cash-out refinancing to convert part of your home’s value into cash, and never having to wait for a landlord to fix a problem in the home. But in 2020 there’s another reason to consider owning a home soon; a Zillow.com report indicates that 2020 is going to be a good year for home values depending on the housing market. The Zillow Home Price Expectations Survey from the 4th quarter of 2019 includes data that indicates U.S. home values may grow by 2.8% in 2020. Rising or hot-again housing markets in the new year include Austin, Texas | more...

One Time Close Mortgage Loans: The Base Home Sales Price

February 4, 2020

Myths About One-Time Close Construction Loans

By Bruce Reichstein

You can build a house from the ground up using a One-Time Close construction loan; many borrowers want to take advantage of these types of loans as the government-backed versions of the One-Time Close construction loan feature very low down payment requirements and the same financial qualification rules as other VA or FHA mortgages. One Time Close Myth: I Can’t Afford To Build A Home Instead Of Buying One It’s easy to assume that building a home will cost you more money than buying an existing construction property. But what kind of home do you need? Are you building a house to start a family in? Or are you building a home that you want to retire in? The overall cost of your project will depend on details like these, | more...

January 28, 2020

One-Time Close Construction Loan Options For Veterans

By Joe Wallace

There are reasons why some veterans don’t use their VA loan benefits to buy a house at that moment. The reasons for that, we’ll discuss below. But it is important for military members and their families to know the options they have when looking for a home to build on their own lot. There are plenty of options; which type of One-Time Close construction loan to choose from? Those who have entitlement to use for a VA mortgage loan to build a home would seem to choose to do so based on the zero down home loan option all by itself. Add the lack of a mortgage insurance requirement, and the fact that veterans who receive (or are eligible to receive) VA compensation for service-connected medical issues are exempt from | more...