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.