FHA new construction permanent mortgage loans

By
Mortgage and Lending with Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289 Loan Officer, NMLS 184479

FHA new construction is a great program for borrowers who want to build their own home and do not have a large down payment. The FHA new construction program allows for a down payment as little as 3.5% of the lesser of the construction cost or appraisal value.

The buyer can use their own land equity, or they can purchase the land with the construction loan. This program is one time close, permanent financing. The permanent interest rate is locked prior to closing.

These two features, locked permanent interest rate and low down payment, make the FHA new construction program very attractive for many families who want to build their new home.

The processing involves three tracts:

  • Normal FHA loan approval
  • Contractor approval
  • Construction approval

As with all construction permanent loans, an attraction for the contractor is that they will not need to use their own credit lines for the construction. The draw schedule is percentage completion.

For the new home owner, the locked permanent rate means no permanent loan surprises when the new home is finished.

Posted by

Thank you for visiting. This is the professional blog for

Richard Byron Smith
Mortgage Loan Officer
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928
Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,
Rural Development (USDA), THDA and Jumbo Loans

Cell phone: 423-280-0345 Email:  Richard.Smith@FairwayMC.com
Branch Contact: Fairway Independent Mortgage Corporation,
2115 Stein Dr, Suite 215, Chattanooga, TN  37421
Office Phone: 423-280-0345  Office Email: richard.smith@fairwaymc.com

Mortgage Loan Officer helping home buyers in Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Corporation
NMLS #2289
Chattanooga, TN

Equal Housing LenderNMLS

Visit my website to inquiry about a home loan.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.

 Copyright ©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. Georgia Residential Mortgage Licensee #28928. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

 

Complaints may be directed to: (877) 699-0353 or Email us: customerservice@fairwaymc.com

 

 Privacy Policy

Terms of use

Comments (0)