Posted on: 01st Jan, 2008 01:58 pm
Are there any FHA construction programs? My wife and I would like to build a new home on our un-mortgaged, freely owned land. We had some late payments two months of 2007 due to a medical condition.
Hi Jimmy,
Welcome to the forum.
You can get a construction loan but very few lenders offer this program. So you may need to shop a bit. There are so many lenders in this community. You can even approach them for it.
Best of luck,
Larry
Welcome to the forum.
You can get a construction loan but very few lenders offer this program. So you may need to shop a bit. There are so many lenders in this community. You can even approach them for it.
Best of luck,
Larry
Hi Jimmy,
Larry is right, and because building a home is considered an "advanced maneuver, versus buying a home that is already built, AND FHA is geared towards helping first time home buyers...it will NOT be you path of least resistance.
Also, with having 2 late pymts in the last 12 months, FHA is going to be your best option. Having said all this...you can look into finding a construction loan, but with the glut of already built homes and resales on the market...you will do yourself a financial favor (meaning more built in equity) by choosing to go with a home that is already built...living there for a few years so that the market can recover, selling it and taking the equity (free money) that you have gained and build your next home.
Kim
Larry is right, and because building a home is considered an "advanced maneuver, versus buying a home that is already built, AND FHA is geared towards helping first time home buyers...it will NOT be you path of least resistance.
Also, with having 2 late pymts in the last 12 months, FHA is going to be your best option. Having said all this...you can look into finding a construction loan, but with the glut of already built homes and resales on the market...you will do yourself a financial favor (meaning more built in equity) by choosing to go with a home that is already built...living there for a few years so that the market can recover, selling it and taking the equity (free money) that you have gained and build your next home.
Kim
Yes, construction loans are available through FHA. I would suggest your builder submit plans in advance to your lender to see if the property will qualify. There are quite a few restrictions. Just walk slowly, lots of landmines to avoid in that scenerio.
You might also want to see if you qualify, talk to some lenders and verify you can even get an FHA mortgage. No need getting the cart in front of the horse.
You might also want to see if you qualify, talk to some lenders and verify you can even get an FHA mortgage. No need getting the cart in front of the horse.
Thank you for the replies. We will have 12 months of consecutive on times for everything in March. Spring is our goal to start construction. We had an professional appraisal done for the land and home. The estimated completed value is $290k. The construction estimate is $228k.
I think that's a good decision to make your credit regular and then go for a new loan.
You may start looking for lenders for a construction loan which will turn into a regular mortgage after the construction period is over.
You may even approach a few of the lenders who visit our forums regularly and check out how much you may borrow and what rate of interest are you being offered.
You may start looking for lenders for a construction loan which will turn into a regular mortgage after the construction period is over.
You may even approach a few of the lenders who visit our forums regularly and check out how much you may borrow and what rate of interest are you being offered.