FHA One-Time Close Construction Loan Rules for 2019

Compare that to “traditional” construction loans that require two applications and closing dates; one for the construction phase of the loan and the other for the mortgage itself.
The risk of being denied for one loan or the other is something that gives some borrowers a dose of worry; FHA One-Time Close construction mortgages eliminate this problem altogether.
What do borrowers need to know about FHA One-Time Close loans in the new year?
FHA One-Time Close Construction Loans Take Time
The borrower comfortable with taking extra time on the project to get the specific home they want is well-suited for an FHA One-Time Close loan.
Borrowers who are in a hurry to close the deal and move into their new home may wish to consider an FHA Mortgage loan to buy an existing construction property.
FHA Construction Loans Are Unique
Borrowers will work with contractors, designers, and even home energy efficiency experts where appropriate to get into their dream home. This is not necessarily the case when purchasing existing construction property, but the experience can be rewarding, educational, and result in you getting exactly the kind of property you want.
FHA Loan Limits for One-Time Close Construction Loans Are Higher in 2019
For the second year in a row, FHA loan limits have moved higher in the new year. This means added borrowing power for those who want a home built to suit; don’t discount the idea of having your new home built for you.
Doing so may be more affordable for you to consider than you realize. Talk to a lender about your financial needs and your goals for your new home to see what type of FHA mortgage is right for you.


We have done extensive research on the FHA (Federal Housing Administration), the VA (Department of Veterans Affairs) and the USDA (United States Department of Agriculture) One-Time Close Construction loan programs. We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service. If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
FHA.com provides information and connects consumers to qualified One-Time Close lenders in an effort to raise awareness about this loan product and to help consumers receive higher quality service. We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA, VA, and USDA One-Time Close Construction Program only allow
Your email to [email protected] authorizes FHA.com to share your personal information with a mortgage lender licensed in your area to contact you.
- Send your first and last name, e-mail address, and contact telephone number.
- Tell us the city and state of the proposed property.
- Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639) or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
- Are you or your spouse (Co-borrower) eligible veterans? If either of you are eligible veterans, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $750,000 and review higher loan amounts on a case by case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.

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