Low Down Payment Loans Fuel Growth in North Carolina's Housing Market

March 11, 2023

The housing market in North Carolina has experienced significant growth in recent years, with a reported 12.90% increase in median home values over the year ending in January 2023 according to Zillow®. This article delves into the state’s housing market and the challenges that homebuyers face when searching for their ideal home. Additionally, we highlight the advantages of building a new home in the state, such as the availability of little or low-down payment construction loans and the potential for customization.

One-Time Close construction loans are an important financing option to consider when building a new home there. These low or no down payment construction loans can provide an affordable option for individuals who are looking to build their dream home, whether they are first-time homebuyers or repeat buyers. These mortgages are offered through the 3.5% down FHA insurable loan program or the $0 down VA insurable loan program and allow borrowers to combine land purchase and construction costs into a single loan.

One of the significant benefits of these construction loans is that borrowers are not required to make payments during the construction phase, and there is no need to re-qualify once the home is complete. Borrowers with middle credit scores as low as 620 may also be eligible. With home prices increasing in today's fiercely competitive housing market, building a new home may be a more attractive option than purchasing an existing one.

The FHA One-Time Close construction to permanent loan has gained popularity among those who want to build a new home. This loan offers eligible borrowers the convenience of combining land purchase and construction expenses into a single loan with a low-down payment of 3.5%. It is available nationwide and can be used for various home types, including Stick-Builds, modular, and manufactured homes.

Eligible veterans can benefit from the VA One-Time Close construction to permanent loan program, which is an exceptional option. This program enables borrowers to acquire land and finance construction expenses for a new home without a required down payment. The VA loan program covers a range of loan types, like the FHA loan options, and is accessible nationwide.

So, if you want to build your perfect house in North Carolina, take the first step towards your dream home today.


 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.