FHA Construction to Permanent

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FHA Construction to Permanent – Everything You Need To Know 

FHA Construction to Permanent:

• Low interest rates
• Designed for new home buyers
• 96.5% Maximum LTV
• No payments due during the construction phase
• Low down payment loan options
• Closing costs may be financed
• Only one closing

Apply for an FHA Construction to Permanent.

Do you want one loan to buy the land, build a new home with a construction loan and then have the loan convert to a permanent loan? 

A construction to permanent mortgage combines a construction loan (short-term loan for financing the cost of construction) and the traditional long-term permanent residential mortgage with a single mortgage closing prior to the start of construction.

The borrower must be purchasing the land at the closing of the construction loan, or have owned the land for six months or less at the date of application.  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 account to be disbursed as construction progresses.

FHA has taken the following steps:

• Update the combination of credit scores and cash out for new borrowers
• FHA one time close construction loan requires a minimum credit score of 620
• Only one closing

We offer Construction to Permanent loans for new manufactured, modular homes, and one unit stick built homes. Our One Time Close program provides construction financing, lot purchase and Permanent loan, all wrapped up in one loan. Apply one time and get approved for one loan.

CALL US 800.516.9166