If you’re looking for an all-in-one financing solution to build your dream home, look no further. The FHA Construction Loan is one of Greenway’s Specialty One-Time Close Construction Loans.

Low inventory and rising home prices can make buying a home challenging. There’s no reason to wait for your perfect home to become available on the market. With an FHA construction loan from Greenway Mortgage, you can build the home you want—and finance it with just one application and one closing. It's that simple!

The Lowdown on the FHA One-Time Close Construction Loan…

The FHA One-Time Close Construction Loan is intended for those looking to build a new home, tear down and put a new house up, or do a major renovation on an existing home. Borrowers can use a qualified licensed builder of their choice (self-build not allowed).

The best part is that this loan allows borrowers to consolidate construction and purchase price for only one set of closing costs and fees. In addition, borrowers pay interest-only payments during the construction period.

Program Details of the FHA One-Time Close Construction Loan

  • 1 time close
  • Owner Occupied (1-2 units); 96.5% LTV
  • Only 3.5% down required, depending on loan size* 
  • 680 min credit score

*Finance up to 90% of project (purchase price + cost to construct)Eligibility requirements, exclusions and other terms and conditions apply.

Benefits of the FHA One-Time Close Construction Loan Include:

  • Consolidate construction & purchase price for only 1 set of closing costs & fees
  • Purchase a teardown property 
  • If you already own an empty property & want to build a home, tear down & put up a new one, or do a major renovation on an existing home
  • Pay just interest-only payments during construction
  • Avoid requalification post-construction
  • Simple & flexible draw process with no set schedule
  • Use qualified licensed builder of your choice (self-build not allowed)

Bottom Line:

So, why wait when you can build your dream home the way you want? Who knows when low inventory is going to subside? While mortgage rates are low, take advantage of this exciting opportunity. Reach out to the experts at Greenway Mortgage to learn more or to see if you qualify for our FHA Construction Loan.

Continue reading to learn how Construction Loans work and be sure to download our free Construction Loan Guide.

How Do Construction Loans work, you might ask?

Overall Process:

  • Builder Approval 
  • Project Approval (appraisal, plans & specs, costs from builder)
  • Borrower Credit Approval
  • Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased

Construction Period

  • Post close welcome call from the construction management company
  • Inspections done as work is put in place, then checks for draws issued to builder and borrower
  • Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loans in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.

Specialized Features

  • Stalled projects
  • Modular construction
  • Major renovations (projects beyond scope of renovation programs)

Remember, Choosing an Experienced Lender is Critical

A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.

Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.

FHA Is Not the Only Construction Program We Have!

Be sure to check out our Conventional, USDA, and VA Programs Too:

Crude oil prices surged to a 7-year high due to strong global demand and tight supply. Tensions in the Middle East and Russia added to the concerns.

The housing market and larger economy are expected to enter a "new normal" in 2022 as the unprecedented market disturbances subside.

Last week's initial jobless claims totaled 286,000, well above the 225,000 estimate. Continuing claims also rose to 1.64 million.

Builders in the single-family housing market are facing growing expenses, which is causing a turnaround in sentiment to start the year.

Housing starts increased to a 9-month high in December amid a surge in multi-family housing projects, despite soaring materials prices.

Existing home sales tumbled in December as higher prices and record low inventory continued to shut out some first-time buyers.


The Federal Housing Finance Agency (FHFA) recently announced increases to upfront fees for certain high-balance and second-home loans. These changes are in effect for loans delivered on and after April 1st, but will affect rates well in advance, so if you’ve been thinking of getting a new loan, we recommend you act now.

What are upfront fees?

Upfront fees are premiums added to the cost of a loan to account for higher risk scenarios. Though the name implies they are paid “upfront” when the loan is initiated, they are more typically reflected in the interest rate you pay.

How much will this cost?

The exact amount depends on your loan to value ratio (LTV) – the amount of the loan as a percentage of the property’s value. A higher LTV will incur a higher fee, as it represents a greater risk. The FHFA is imposing fees ranging from 0.25% to 0.75% for high-balance loans and 1.125% to 3.875% for second-home loans. As an approximate example, a fee of 0.75% will often translate to a mortgage rate that’s 0.25% higher.

How do I know if the new fee impacts my purchase or refi?

Generally speaking, the fee structure will apply to all second-home loans (homes not used as a primary residence).

High-balance loans (offered in areas with elevated conforming loan limits) will be impacted unless they are part of certain protected programs, such as HomeReady or Home Possible, or for certain first-time homebuyers in high-cost areas.

The fees apply to loans sold to Fannie Mae or Freddie Mac, which account for the majority of mortgage loans in the U.S. Privately held mortgages will not incur the fees.

Have questions? Please reach out to learn more. We are happy to help! 


Multiple Fed members have come out supporting policy rate increases to curb inflation, beginning as early as March.

Although the Fed doesn't set mortgage rates, expectations of upcoming Fed policy rate hikes pushed mortgage rates higher this week.

Both consumer and wholesale inflation continue to be a problem. Consumer inflation rose 7% in December, its biggest gain since 1982.



Purchase mortgage applications rose 2% last week compared with the previous week, as higher mortgage rates have homebuyers nervous.

Refinance apps were 50% lower year-over-year and the lowest level in 3 months, but they were down only 0.1% from the prior week.

Despite rising rates, the housing market is expected to remain competitive this year. Sales are expected to grow 6.6% to a 16-year high.


Are you planning to buy a house in the near future? Understanding what your credit score is and what factors influence it can give you a confidence boost when buying a home, plus arm you with knowledge if you need to dispute something.

Credit scores are a big factor when buying a home. They are used by mortgage lenders to determine if you’re at risk of defaulting on your loan and even how much they should charge you for the loan. Most consumers don’t really understand what influences their credit score, and even fewer know how lenders calculate the loan pricing. In this blog, we’re going to look at your credit score and the factors that influence it. The more you know, the more you can make a difference.

Five primary factors impact your credit score. Can you guess which ones have the most influence? Let’s uncover the facts. We’ll even throw in a few helpful tips…

Length Of Credit History

Length of credit history accounts for only 15% of your credit score. The longer you use credit responsibly, the better your score can be. 

Tip: Even if you pay off an older credit card, keep the account open and use it occasionally.

Amounts Owed

The amount you owe on your credit accounts is the second largest contributor to your score. It accounts for 30% of your credit score. The best scenario is low "credit utilization" – using no more than about 20% of the credit available to you.

Tip: If you don't have money to significantly pay down debt right away, consider asking for a higher credit line on an existing account. When you make the request, ask the creditor to make a "soft inquiry" into your credit history, which will not ding your score, rather than a "hard inquiry," which could temporarily cost you some points.

Types of Credit In Use

Types of credit in use accounts for only 10% of your credit score.

It helps your score to maintain a combination of three types of financing: revolving (credit cards), installment (student or personal loans), and secured (auto loans).

Tip: Don't run out and open an account just to have diversity! This is one of the least influential contributing factors.

New Credit

New credit also only accounts for only 10% of your credit score.

Newly established accounts and inquiries for new credit can lower your score. Fortunately, this factor has a relatively small impact.

Tip: Limit the number of new credit inquiries you make and accounts you open, particularly if you're preparing to seek a mortgage or other large loan soon. If you're shopping around for the best deal on new credit, do so in a short amount of time to minimize the impact of multiple queries.

Payment History

Last but certainly not least, pay history accounts for a whopping 35% of your credit score!

The timeliness of your payments is the single biggest contributor to your credit score. It's important not only to make your payments but also to make them by their due dates.

Tip: Have a system in place to assure your bills are always paid on time. Set up automatic withdrawals where appropriate. Keep a cash reserve account to cover payments during possible interruptions to your income.

Bottom Line

Managing your credit is important to obtaining the best terms any time you need to borrow. Best practices may seem counterintuitive, so follow our tips to keep your credit shining. And remember, good habits create good credit. Have questions? Don’t be afraid to reach out to us! We are happy to help.

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