FHA One Time Close Home Construction Loan is Back, Nationwide

Mortgage and Lending NMLS #209419

What is a Construction to Permanent Loan? An FHA Construction-to-Permanent (C2P) loan is used to finance the construction of a new primary residence and permanent mortgage all into one single closing. The homeowner is approved for an FHA C2P loan if the homeowner is qualified for the long-term permanent FHA mortgage.


Upon completion of construction, the borrower will be required to modify the interim construction loan (ICL) into a permanent FHA Fixed rate loan. There will be no additional closing or closing costs required.  This loan is available Nationwide


Loan Requirements

  • 3.5% down or 96.5% LTV based on Total Acquisition Cost of Land & Home Construction Cost
  • 620 Mid FICO score required.
  • 9-month build time from date of closing and funding.


Property Requirements & Limitations

  • Single Family Residence, Owner Occupied.
  • Site built homes only, no manufactured homes and Modular homes on an exception basis
  • Loan amounts up to FHA Maximum for your area
  • Gifted land allowed.
  • Pool construction allowed. Restrictions apply.
  • Lot/Land owned by the borrower for less than 12 months will be valued at the cost of acquisition or the appraised value whichever is less.
  • No Self Builds - All Builders must go through a one-time approval process if not already approved
  • Builder owned, 2nd homes and/or investment properties are not eligible.

Homeowner receives a bill monthly for construction interest accrual based upon funds dispersed thru the draw process to the builder.  Call us today for more Details

Comments (0)