How the Texas Median Home Value Affects Your Homebuilding Options
Low down payment construction loans are a great option for first-time and subsequent homebuyers who want to build their dream home without breaking the bank. With a 3.5% down FHA insurable loan program or a $0 down VA insurable loan program, homebuyers can combine the land purchase and the construction costs of the home into one loan.
The benefits of this type of loan include no payments during construction, no re-qualifying once the home is completed, and middle credit scores for each borrower as low as 620. Additionally, with soaring prices and the persistent demand issue in today's competitive housing market, building a new home may be the best alternative to finding that perfect home.
The FHA One-Time Close construction to permanent loan is a favored financing choice for new home construction. It permits the combination of land purchase and construction expenses, with a low-down payment of 3.5% for eligible borrowers. The loan type covers Stick-Builds, modular, and manufactured homes throughout the country.
Eligible veterans can take advantage of a VA One-Time Close construction to permanent loan program, which offers a $0 down payment option for purchasing land and financing construction costs for a new home. This VA loan program can be used for the same loan types as FHA construction loan types mentioned above and is available nationwide.
If you're planning to build a new home in Texas, exploring FHA/VA One-Time Close construction loans as a financing option may be a wise decision.
FHA, VA, and USDA: One-Time Close Loans
Want More Information About One-Time Close Loans?
We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
FHA.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
Contact Us: Send Us Your Request – Spam Safe
Please send your email request to [email protected] which authorizes FHA.com to share your personal information with one mortgage lender licensed in your area to contact you.
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 and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,000,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
Do you know what's on your credit report?
Learn what your score means.