FHA One-Time Close construction loan
An FHA one-time close construction loan uses one closing for the construction financing and the permanent mortgage. You do not close once to build and again when the house is finished.
The Federal Housing Administration insures the loan. An approved lender provides the money, not the FHA. First Lending Solutions is not part of the FHA, and the FHA does not endorse us.
Who it is for
It is for someone building a primary home who wants the construction financing and the long-term mortgage handled in that single closing. You live in the finished home. FHA loans are for U.S. citizens and lawful permanent residents (green-card holders). With us, FHA loans start at a 580 credit score. That minimum is our requirement. The lender still reviews credit, income, debts, the plans, the builder, and the lot. We can review an FHA file by hand when the guidelines call for it. Approval is not guaranteed.
See also the VA One-Time Close construction loan and the conventional One-Time Close construction loan.
Steps
- Talk with a loan officer about the lot, the plans, and the builder.
- Apply, and share the plans for review.
- Close once. That closing covers construction and the permanent mortgage.
- The builder is paid in draws as completed work is inspected.
- When the home is finished, the loan continues as the permanent mortgage.
1st Lending Solutions, Inc. DBA First Lending Solutions. NMLS #135932 (www.nmlsconsumeraccess.org). Licensed by the California Department of Real Estate (#01482431) and by the DFPI under the California Financing Law (No. 60DBO96452). Equal Housing Opportunity. This is not a commitment to lend. Approval is required.
Questions
What does one-time close mean?
You close once. That closing covers the money used while the home is built and the mortgage that remains after the home is finished. There is not a second closing.
Who is it for?
Someone building a primary home who wants FHA construction financing and the permanent mortgage in that single closing. You live in the finished home. FHA loans are for U.S. citizens and lawful permanent residents (green-card holders). With us, FHA loans start at a 580 credit score. Approval is not guaranteed.
Who makes the loan?
An approved lender provides the money. The Federal Housing Administration insures the loan. First Lending Solutions is not part of the FHA, and the FHA does not endorse us.