Utilizing FHA and VA One-Time Close Construction Loans in Florida
These government backed construction loans are an important option to consider for those looking to build a new home. The Florida housing market is an excellent place to start thinking about building a home from the ground up with this single-close mortgage.
As of today's date, the increase in housing demand has created an inventory shortage and a good reason for borrowers to consider a construction loan. Building a home to suit your needs is a great alternative than trying to find the one perfect home in a competitive resale market. See Florida's FHA Lending limits for each county.
The State of Florida is broken down into 22 MSA’s or Metropolitan Statistical Areas which is a geographical region with a relatively high population density at its core and close economic ties throughout the area. In FL, these are broken down into the following: Miami, Ft. Lauderdale, West Palm Beach, Tampa, St. Petersburg, Clearwater, Orlando, Kissimmee, Sanford, Jacksonville, North Port, Sarasota, Bradenton, Cape Coral, Ft. Myers, Lakeland, Winter Haven, Deltona, Daytona Beach, Ormond Beach, Palm Bay, Melbourne, Titusville, Pensacola, Ferry Pass, Brent, Port St. Lucie, Tallahassee, Naples, Immokalee, Marco Island, Ocala, Gainesville, Crestview, Ft. Walton Beach, Destin, Panama City, Punta Gorda, Sebastian, Vero Beach, Homosassa Springs, and Sebring.
One-Time Close Construction to Permanent Loans are offered for new site stick build housing, new modular construction, and new manufactured construction. While the State of Florida is split into MSA’s, these Single-Close construction loans are available in all 67 Florida counties. One Time Close mortgages are a major improvement over the old construction loan process that forced borrowers to apply for not one, but TWO loans; one for the payment for labor, materials, and construction of the home and another loan that covers the actual mortgage. These OTC construction loans have a single application and closing date.
No mortgage payments are required during the construction phase of the One-Time Close loan, and the borrower is protected from failing to qualify for a second loan and from rising interest rates during the construction phase.
Guidelines for this loan type are like those of a regular home purchase, yet lenders will require a minimum middle credit score from the three bureaus of 620. Employment and income verifications require a two-year work history and recent pay stubs & W2's. For self-employed borrowers, federal income tax returns for a two-year period is required.
Soaring prices, short inventory, what is a borrower to do? The answer is to explore building a home on your own lot with a One-Time Close construction loan.
FHA, VA, and USDA: One-Time Close Loans
Want More Information About One-Time Close Loans?
We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) 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 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 and VA One-Time Close Construction Program only allows for single family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes). In addition, the following homes/building styles are not allowed under these programs, including but not limited to: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes, Dome Homes, Bermed Earth Sheltered Homes, Tiny Homes, Accessory Dwelling Units, or A-Framed Homes.
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Please send your email request to [email protected] which authorizes FHA.com to share your personal information with one mortgage lender licensed in your area to contact you.
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. 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.
4. 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 $1,500,000 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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