FHA, VA and RD Construction Loans

By
Mortgage and Lending with Cranbrook Loans NMLS #134090

Yes, you can build a new home with FHA, VA and USDA loans. 3.5% down payment for FHA. 0% for VA and Rural Development. These are Single Close programs. One closing, one set of fees, no re-qualifying. 

Conventional loan programs require 10% to 20% down payment and minimum credit scores of 680 to 720. The VA and Rural Development loans are 0% down programs. The minimum credit scores for these programs is as low as 640. The FHA construction loan program can be used in as little as 2 years after a Chapter 7 bankruptcy, 3 years after a foreclosure (2 years for VA), and you can even qualify while you in a Chapter 13 bankruptcy! To qualify for the conventional loan you will need to wait 7 years in after a foreclosure, 4 years after a bankruptcy. 

With the FHA, VA and RD construction loan programs, you have no payments until the home is completed, the interest during construction is rolled into your loan amount. With the conventional program you have to make interest payments while the home is being built.

It is best to build a home that is common for the area on a common amount of land. These programs can not be used to build log homes, pole barn homes, hobby farms or any kind of unique type of a home. You can use it to build a site built home, a modular home or even a manufactured home if there are good sale comps in your area. 

You can find out more by going to my website, www.bestfhaconstructionloan.com.

Comments (10)

Jason Boone
Duke Warner Realty - Bend, OR
Principal Broker, CRIS, RENE, SRS, PSA

Welcome to ActiveRain, I wish you the best of success!

Mar 16, 2018 07:34 AM
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, VA, GA and FL.

Thanks Jason. Bend Oregon, could you pick a better place to live? I don't think so.

Mar 16, 2018 07:42 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Jerry Thomas-Construction Loans, Welcome to Active Rain and congrats on your first blog post, this is a great place to meet awesome professionals.  

Mar 18, 2018 07:42 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Jerry,

Welcome to the Rain community. 

Congratulations on your first blog post.

Mar 18, 2018 11:56 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Welcome to active rain. Good luck in achieving your goals on active rain 

Mar 22, 2018 03:32 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jerry Thomas-Construction Loans welcome to ActiveRain and congratulations on successfully posting your first blog on this site.

Mar 22, 2018 04:28 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Many modern agents can not explain any of these in depth !!!

Mar 27, 2018 11:28 AM
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, VA, GA and FL.

Thanks Michael. My favorite construction lender was M & T Mortgage, right there in Lancaster. Had a chance to fly in once for their golf outing. Spent the night in downtown, great city. Capital of the United States for one day!

Mar 27, 2018 12:43 PM
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

Congratulations on your first blog post in AR! Looking forward to reading more.

Apr 17, 2018 10:35 PM