Low Down Payment Loans Are Changing the Tennessee Housing Market
February 16, 2023
Median home values in Tennessee have risen by 10.50% in the year ending in January 2023, indicating significant growth in the state's housing market. This is according to a recent Zillow® article that highlights the advantages of constructing a new home in the state, such as access to low down payment construction loans and the possibility of customization.
For those looking to build their dream home, these loans can be an ideal option for first-time or repeat homebuyers who want to stay within their budget. This financing opportunity enables them to combine the land purchase and construction costs into one loan, with the added advantage of a favorable down payment terms. Choices include the FHA insurable loan program with a down payment as low as 3.5%, or a VA insurable loan program that offers a $0 down payment option.
A significant benefit of these programs is that borrowers don't have to make payments while their homes are being built. Additionally, there's no requalification for the loans once construction is complete.
Another advantage is that borrowers may qualify for these loans with middle credit scores as low as 620. With the current housing prices trending higher and a fiercely competition housing marketplace, building a new home could be an excellent opportunity for customization.
The FHA One-Time Close construction to permanent loan is a favored choice among individuals who wish to build a new home. This loan option enables eligible borrowers to merge their land purchase and construction costs into a single loan, with a minimal down payment of 3.5%. The loan applies to various home types, such as Stick-Builds, modular, and manufactured homes, and is accessible throughout the nation.
For eligible veterans seeking to purchase land and finance construction costs, the VA One-Time Close construction to permanent loan program offers a $0 down payment option. This program covers various loan types and is available across the country.
If you are looking to construct a new home in Tennessee, you should consider FHA and VA One-Time Close construction loans.
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.
Contact Us: Send Us Your Request – Spam Safe
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 $1,000,000 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.
For those looking to build their dream home, these loans can be an ideal option for first-time or repeat homebuyers who want to stay within their budget. This financing opportunity enables them to combine the land purchase and construction costs into one loan, with the added advantage of a favorable down payment terms. Choices include the FHA insurable loan program with a down payment as low as 3.5%, or a VA insurable loan program that offers a $0 down payment option.
A significant benefit of these programs is that borrowers don't have to make payments while their homes are being built. Additionally, there's no requalification for the loans once construction is complete.
Another advantage is that borrowers may qualify for these loans with middle credit scores as low as 620. With the current housing prices trending higher and a fiercely competition housing marketplace, building a new home could be an excellent opportunity for customization.
The FHA One-Time Close construction to permanent loan is a favored choice among individuals who wish to build a new home. This loan option enables eligible borrowers to merge their land purchase and construction costs into a single loan, with a minimal down payment of 3.5%. The loan applies to various home types, such as Stick-Builds, modular, and manufactured homes, and is accessible throughout the nation.
For eligible veterans seeking to purchase land and finance construction costs, the VA One-Time Close construction to permanent loan program offers a $0 down payment option. This program covers various loan types and is available across the country.
If you are looking to construct a new home in Tennessee, you should consider FHA and VA One-Time Close construction loans.
FHA, VA, and USDA: One-Time Close LoansWant 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.
Contact Us: Send Us Your Request – Spam Safe
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 $1,000,000 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.
Do you know what's on your credit report?
Learn what your score means.
