Articles Tagged With: FHA One-Time Close Construction Loan

The FHA One-Time Close Construction Loan: An Option In 2020

December 24, 2019

The One-Time Close Construction Loan: An Option In 2020

FHA home loan options in 2020 don’t have to be limited to getting a home loan to purchase existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up on your own land. These construction home loans, known as One-Time Close construction loans, are offered by the FHA, the VA, and even the USDA and can help even a first-time homebuyer get a house built to their specifications with a low down payment. Yes. you read that correctly. First-time home buyers are permitted to apply for the One Time Close construction loan. So are experienced homeowners. One-Time Close construction loans are good for borrowers who want a home that meets their standards, but the loan | more...

December 23, 2019

FHA Home Loan Applications In 2020

By Joe Wallace

If you are considering the purchase of a home or having a house built for you on your own land in 2020, you are thinking about making the commitment to a mortgage at a very good time. FHA loan limits have been increased for another year, the previous year has been a very good one for mortgage loan interest rates, and even those contemplating refinancing instead of buying have more to think about in 2020 than in years past. Are you ready to apply for a purchase loan, construction loan, or FHA refinance in the new year? Know The Content Of Your Credit Reports If you do not know what your credit report says about you, if you have no idea what your credit score is, be sure to give | more...

December 13, 2019

5 FHA Loan Facts To Remember When House Hunting

By Bruce Reichstein

There are five basic things to remember when house hunting that can help you make better choices about your loan and the home you want to purchase with it. FHA mortgages are for those who intend to own and occupy the home as their primary residence, so if you are looking to find a home to live in, keep reading! FHA Home Loans Are Available For Fixer-Uppers If you want to buy a home you are sure won’t pass an FHA appraisal, you can still buy the property using an FHA 203(k) Rehabilitation Loan instead of the FHA 203(b) loan used to buy homes that can pass the appraisal process. FHA 203(k) Rehab loans come in two sizes, one known as the Limited 203(k) for smaller projects that don’t involve | more...

Build on your own lot. Construction loan basics

December 11, 2019

Build On Your Own Lot: Construction Loan Facts

By Bruce Reichstein

If you are interested in building a home on your own lot instead of buying a house owned by someone else, the One-Time Close construction loan is an option worth considering. Facts about One-Time Close mortgages include your options–there are FHA, VA and USDA versions of the One-Time Close Construction (OTC) loan. With a VA OTC, there is an option to put 0% down, FHA construction loans feature a low down payment of 3.5% of the adjusted price of the home in most cases. Construction loans require you to work with an approved contractor so you should plan on spending some time searching for one. Construction loans are sometimes hard to come by because borrowers don’t know the right loan to ask for, or are working with a lender who | more...

December 9, 2019

Applying For A Home Loan In 2020

By Joe Wallace

Are you thinking about buying or building a home in 2020? Prepare for your dream home early and get ready to start the path to homeownership in the new year. Save Early What kind of expenses should you anticipate when saving for your home loan? It’s not just the down payment you’ll need to save for–here is a list of common home loan expenses: Title insurance Appraisal costs Pest inspection fees Origination fees Discount points Credit report fee Survey fee Property taxes Mold abatement (where applicable) Document prep Compliance inspections You will also want to save early for unexpected costs including contingencies where the appraised value of the property is lower than the asking price. Some borrowers like the home so much they are willing to pay the difference in | more...

December 4, 2019

Don’t Make These Mistakes With Your One-Time Close Construction Loan

By Bruce Reichstein

The FHA One-Time Close construction loan is meant for borrowers (first-time home buyers or otherwise) who would rather build a house on their own lot instead of buying an existing property. The beauty of the FHA One-Time Close loan is that you can be a first-time home buyer and make the same low down payment of 3.5% as any other FHA borrower. But there are some pitfalls to avoid with FHA One-Time Close mortgages; these are the same mistakes that are made with other home loan transactions, but with a construction loan you may find that more attention is paid to these issues due to the more complex nature of the loan. Avoid Changes In Your Credit Changes to your financial status before loan closing means things like adding more | more...

Buy or Build a House On Your Own Lot in 2020

November 26, 2019

Buy or Build A Home With An FHA Mortgage In 2020

By Bruce Reichstein

Are you thinking about becoming a homeowner in 2020? Some borrowers have an advantage when getting financially ready for their FHA loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Preparing early is the key to the most seamless loan process possible. Are you ready to start exploring your options? Or are you just getting started with your credit reports, debt-to-income ratio, budgeting for the down payment and closing costs, etc.? Ask Yourself The Right Questions About Your FHA Home Loan How long have you been planning and preparing for the new loan? This is a very important question–without enough time to sort out potential problems on your credit report (identity theft, outdated information, incomplete or wrong details, etc) or | more...

November 21, 2019

Types Of Homes You Can Buy Or Build With An FHA Mortgage

By Joe Wallace

What types of home can you purchase or build with an FHA mortgage? For the purposes of this article, we are talking about the status of the property rather than the property type. It’s true that FHA loans are available for condo units, mobile homes, and manufactured homes, and you can also use an FHA One-Time Close construction loan to build a home from the ground up on your own land. You can use an FHA mortgage to buy or build a single-unit home or you can purchase a property with as many as four living units. But FHA home loans also take into account the status of the property as an existing construction home, new construction, etc. The list of property types includes: Proposed Construction where no concrete or | more...

November 20, 2019

FHA Home Loan Rules For Construction Loan Escrow Accounts

By Bruce Reichstein

Do you need a construction loan to build on your own land? The FHA One-Time Close construction loan can help you do just that; this mortgage features one loan application and closing date to build your house, and you aren’t required to pay more than the usual low 3.5% down payment for qualified borrowers. When using a construction loan, the borrower will need to use an escrow account to make the payments for labor, materials, and other construction costs. But there are rules that govern how these “draws” are to be made; HUD 4000.1 contains those rules, which include the following instructions to the lender: “At closing, after funds are disbursed to cover the purchase of the land, the balance of the mortgage proceeds must be placed in an escrow | more...

November 18, 2019

Construction Loan Advice For New Borrowers

By Bruce Reichstein

Are you thinking about using a construction loan to build a home from the ground up on your own land? The FHA One-Time Close construction loan features a low 3.5% down payment even for those who have never borrowed or purchased a home before. There is also a VA version of the One-Time Close construction mortgage offering 0% down to qualified veteran borrowers, those who still serve, and certain military spouses. The One-Time Close construction loan offers a single mortgage application for both the construction of the home and the mortgage itself; borrowers no longer have to apply for one loan to build and one loan for the mortgage. That means peace of mind during the entire process, but there are some rules and guidelines you’ll need to follow during | more...