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Need to build a home in Kentuucky Greenup Area

Posted on: 13th Aug, 2008 08:51 pm
I am a person on SS Disability, and not a Veteran, and is certified disabled due to injury. I want to build a home in the Greenup Kentucky county area, South Shore preferred and need help on how to get started desperately. I need to obtain roughly 115000 loan. I also know that there are grant programs from the FHA, that help with the downpayments etc., and under the disability I should be able to get such loan with a different interest rates etc that are not conventional, so I need to make contact to a person who can coordinate the HUD/FHA loan for me. I want to get this paper process started and get the approval done before settling into the area as they build the house.

Where to go or how to get started and how to find a FHA officer and get myself preapproved. Is there someone who can handle all this and give the loan as well???? What do I do.

Any help is most appreciated.

Dave
Welcome purplewitch,

How's your credit record? Since you're looking for an FHA loan, therefore what's important is that you shouldn't have late pays or collections etc. I mean you may have a credit score around 580 but late pays and other negative items like collections and charge-offs are strictly considered by FHA lenders.
Posted on: 13th Aug, 2008 10:13 pm
Hmmm, currently I have no collections or charge-offs the past 10 years that I can think off. I did file for a Chapt 13 over 10 years ago and that is paid off complete and I have been clean the past 10 years. Bankruptcy resulted from a hospital bill amounting to nearly 80,000 dollars!!!!!

So now I am in sore need to get a home and get one built up. I prefer to subcontract this building of the home which will give me about 20% savings material wise.

I will let the contractor take care of the permit approvals etc and the inspector as well.

Dave

Please can you point me in the direction on regards to my question???
Posted on: 14th Aug, 2008 12:47 am
As far as I know I have no late pays or collections outstanding the past 10 years. I did file for a bankruptcy Chapt 13 about 15 years ago and that was paid off. Other than that, to my knowledge that is my credit history so to speak.

I really need the help regarding my questions of how to get this started and who and where do I go to etc.

Dave
Posted on: 14th Aug, 2008 03:54 am
I am not aware of any special programs for fha? I also do not think that FHA offers construction loans? You may want to contact a local broker to see what is available. Most construction loans require very good credit (which it sound like you may have) and a big down payment. Good Luck if someone does come through with what you are looking at I would like to know the program.
There is a rural loan program that will allow you to place a new manufactured home onto land and go 100% but the area (land) and the buyer must fit into their parameters.

Good Luck
Brian
Posted on: 14th Aug, 2008 11:03 pm
Hi Brian,
As of the construction loans, I think you misunderstood. I plan on having a builder build the home, but I subcontract it. The savings is quite substantial. The HUD/FHA I believe can provide such loan to me if I qualify. So right now I want to be pre-approved for such home loan and of course there are other grants that help people as well.

So again as I said I am disabled, and certainly I am not going to go for a conventional loan which the downpayments and interest rates are so high it can bust you right in half. Also manufactured homes is not what I wish to have as this is the poorest of all constructions. I prefer a brick home and it be well built from scratch on up. I already have the preliminary blueprints here with me.

A few changes and it will sit well for me. Of course other people have homes up for sale but again I have no idea on how well maintained the house is. I have seen nightmares from people who did buy such home and it seemed things started falling apart here and there etc.

I have also seen mass constructions of homes built and took a look at the concrete that was used. It was terrible and the foundations began cracking inside of 6 months. I don't want to get involved in such area.

To me it is best to build from scratch and I can get the materials needed for the contractor to do their job and watch over it. This way I know corners are not cut and the house is built solid and to my specifications rather than what someone else had.

So now can you point me in the right direction and whom to make contact to get this process started???

Thanks

Dave
Posted on: 19th Aug, 2008 11:35 am
Hi Dave,

welcome back.

As far as I know, the FHA approved lenders don't offer an out an out construction loan. But they do offer the FHA insured 203k loan which provides finances for the improvement on a new home that you buy. But you seem to be interested in starting from the scratch that is you'd like to build the home first. So, for that purpose I think the only option is to look for conventional loans which are offered primarily for construction purposes and which allow you to refinance into a permanent loan for 20-25 years.

Since your credit record is good enough, I think you can try and apply for a no-obligation free loan consultation on the right mortgage with the lenders in this community and see what they're offering you. The lenders here have a variety of loans to choose from. So, let's hope they'll be able to provide you with something that will suit you well.

Thanks
Posted on: 20th Aug, 2008 10:39 pm
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