FHA Construction Loan

Let’s be honest, mortgages in general are not very exciting.  But I am super excited about our FHA Construction  Program.  As you may know FHA loans have the easiest guidelines for a home buyer to qualify.  And now those guidelines can be used for someone to build a home.  This is also a great program for home builders, as it keeps them from having to finance the construction themselves.  Here are the major points and benefits to know: 

1.      This is a One Time Close Construction loan.  Meaning you do not need to do a construction loan and then refinance to a normal loan.  Hence saving you money on closing costs

2.      A low down payment or the equity in the land owned(if the land is owned) can go toward the down payment

3.      NO payments during the construction loan.  This is a nice benefit over normal construction loans.

4.      The Buyer can Build anywhere they want in Texas

5.      The Home Buyer can not be the builder

6.      Any changes to the building plan after construction will have to be paid out side of the loan

7.      Must own the land for 6+mths to be able to use that value over the cost of the land when it was bought.  This is based on what value is used to have the equity go toward their down payment.

8.      The Loan to Value is based on the appraisal value or cost of construction, whichever is less

9.      1st mortgage payment is 60 days after the final inspection or certificate of occupancy

10.  Max loan amount is $330,050, that is the max loan amount for FHA loans in the Houston Area.  This  does not mean that the home cost has to be $330,050  or less, the cost can be whatever the home buyer wants it to be, but only $330,050 will be financed

11.  Available for fico scores down to 580!!

12.  Realtor’s commission is based on the construction of the home and land, not just the land

I have been in this business for a long time and I did not even know this fantastic program existed, until we started doing the program.  This program is also great for builders to know about.  Call me today with any questions!!