FHA One-Time Close Construction Loan Limits Are Higher in 2024

January 23, 2024

Do you want to build a home from the ground up? You can do this with low down payment requirements with an FHA One-Time Close Construction Loan. And construction loan borrowing power has increased in 2024 because FHA loan limits have increased from the previous year.

FHA loan limits vary depending on the housing market. Is it considered typical, high-cost, or low-cost? In 2024, the limits for all FHA forward mortgages (including FHA One-Time Close Construction Loans) increased and the floor and ceiling numbers were adjusted for single-unit properties as well as multi-unit purchases.

If you want an FHA One-Time Close Construction Loan in 2024, the floor is $498,257 in America’s low-cost housing markets. The ceiling is $1,149,825 for high-cost areas. The FHA loan limit floor is 65% of the national conforming loan limit of $766,550 for a single-unit property.

Multi-unit loan limits apply for those purchasing new construction or existing construction homes, but you may find that for FHA One-Time Close loans, loan approval may be limited to single-unit properties, but here are the numbers for those who wish to purchase existing or new construction multi-unit homes:
 

• Two-unit: $637,950
• Three-unit: $771,125
• Four-unit: $958,350

For high-cost areas, FHA mortgage limits are established at 150% of the national conforming loan limit in 2024. If you are interested in a One-Time Close Construction Loan, the single-unit limit is the one to pay attention to:
 

• One-unit: $1,149,825
• Two-unit: $1,472,250
• Three-unit: $1,779,525
• Four-unit: $2,211,600

“Special exception areas'' also have higher loan limits. These areas include Hawaii, Alaska, Guam, and the Virgin Islands. Housing markets in these locations are more expensive and feature higher loan limits. As mentioned above, One-Time Close borrowers should look at the FHA single-unit loan limits.

One-Time Close Construction Loans feature the same general requirements as other FHA mortgages, including a low 3.5% down payment for those who qualify, no penalty for early payoff of the mortgage, and the ability to refinance later with an FHA Streamline Refinance loan that can result in a lower rate, a lower payment, or other tangible benefits to the borrower.


 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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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.