FHA One Time Close Home Construction Loan is Back, Nationwide

Mortgage and Lending with Henry J Daniels (936) 228-1944 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

Posted by

Henry J Daniels, Senior National Mortgage Banker for Goldwater Bank N.A.  he specializes in educating clients on the new realities of today's mortgage lending market and providing solutions to all of your home financing needs.  

If you need Custom Home Construction, Rehab, FHA, VA, USDA, Conventional, Jumbo or Construction mortgage Nationwide he can help you understand all of the options available and provide you with true financing choices.  

You may contact him at (936) 228-1944

  Copyright © 2007-2018 Henry J Daniels

The views expressed are mine alone and do not necessarily reflect the views of any company I may work for.

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