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:
