FHA New Construction To Permanent Mortgage Guidelines

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FHA New Construction To Permanent Mortgage Guidelines

This BLOG On FHA New Construction To Permanent Mortgage Guidelines Was PUBLISHED On April 4th, 2019

FHA New Construction Mortgages is now offered at Gustan Cho Associates at Loan Cabin Inc. NMLS 1657322.

  • The new FHA New Construction Loan Program at Gustan Cho Associates at Loan Cabin Inc. is a one-time-close loan program on new construction homes
  • We are one of the very few direct lenders that off FHA New Construction Loans with a one-time close
  • The housing market is booming nationwide
  • Many pre-approved home buyers are being priced out of the housing market due to inventory shortage
  • Housing prices are increasing nationwide
  • The Federal Housing Finance Agency (FHFA) has increased conventional loan limits for three years in a row due to rising home prices
  • Conforming loan limits for 2019 is now at $484,350 unless the property is located in a high-cost area
  • HUD, the parent of FHA, followed FHFA’s lead in increasing FHA Loans Limits
  • FHA Loans Limits for 2019 is now at $314,827 on single-family homes in traditional areas. High-cost areas have higher loan limits

Home buyers can now qualify for FHA New Construction To Permanent Loans at Gustan Cho Associates.

FHA New Construction One-Time Close Mortgage Program

Gustan Cho Associates at Loan Cabin Inc. are one of the very few national lenders that offer FHA New Construction to Permanent Mortgages with a one-time close.

  • Most lenders normally require a two-step construction to permanent financing program on new construction loans
  • The two-step construction to permanent financing requires much more paperwork, red tape, and a second home appraisal after the construction has been completed

Our FHA New Construction One-Time Close allows financing for the lot, construction, and the final end loan after the house has been built. A One-Time FHA New Construction Close Mortgage Program costs substantially less than a two-step construction to a permanent close. Less paperwork and stress. There are no construction bridge loans to worry about so no additional fees and costs are required with a step one-close FHA Construction Loan. Borrowers with our one-time FHA Construction Close do not have to worry about getting a second final home appraisal. 

FHA New Construction

FHA New Construction One-Time Close Mortgage Process

Gustan Cho Associates at Loan Cabin Inc. will finance the cost of the lot purchase, cost of the construction, and the final permanent FHA Loan with a one-time closing. The process is very streamlined and simple. 

  • Borrowers do not have to make any payments during the period of the construction process
  • Borrowers and the property does not need to be -requalified after completion of the project
  • The closing is done prior to the start of the construction process

Eligibility Requirements And Guidelines

Borrowers need to meet all HUD Mortgage Guidelines:

  • Minimum down payment required is 3.5%
  • Maximum loan limit to FHA county mortgage limits
  • Only owner-occupant primary home buyers qualify
  • Two-to-four unit multi-family properties do not qualify
  • Condominiums and townhouses do not qualify
  • Automated and manual underwriting allowed
  • Minimum credit score of borrower needs to be 620 FICO
  • Single-family homes only
  • Manufactured homes meeting HUD Property Guidelines qualify
  • Lots can be owned, gifted, or lender will finance it

Qualifying For FHA New Construction One-Time Close Mortgages

Borrowers who need to qualify for FHA New Construction To Permanent Loan Program, please contact us at 262-716-8151 or text us for faster response. Gustan Cho Associates at Loan Cabin Inc. are a 5-star national direct lender with no overlays on government and conventional loans. We are also experts in non-qm loans and alternative financing programs. Many consider us a one-stop mortgage shop. Over 75% of our borrowers are folks who could not qualify at other lenders due to their overlays or because their loan officers did not qualified them properly. Gustan Cho Associates at Loan Cabin Inc. also offers VA and USDA New Construction One-Time Close Mortgage Loans. 

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