One-Time Close Construction Loans and 2024 Loan Limits
December 10, 2023
Interested in building a home in 2024? As we explore below, your borrowing power may be higher in the new year thanks to action by the federal government.
Annual Loan Limits Review
Each year, the federal government reviews the national conforming loan limits. When conditions warrant an increase in those loan limits, they are adjusted for the new year, and the higher limits take effect on January 1st of the new year.
2024 construction loan limits are an important factor to pay attention to when considering your construction loan options.
Higher loan limits could add to your borrowing power if you want a low-down payment FHA or no-down payment VA construction loan.
What to Know About FHA Construction Loan Limits in 2024
Many participating FHA One-Time Close lenders won’t approve a construction loan for a larger property than a single living unit. Your experience may vary, but typically expect to build a home one unit large.
In 2024, the national conforming loan limit is $766,550. 65% of that number (for a one-unit home) is $498,257.
FHA One-Time Close construction loan limits for 2024 include rates for single-unit residences in high-cost and low-cost areas.
FHA national low-cost area mortgage limits are set yearly at 65% of the national conforming limit. There are different loan limits for each size of home, from one unit to four units. We only list the single-unit limit here for one very good reason.
FHA loans offered in high-cost areas have loan limits established yearly at 150% of the national conforming limit of $766,550 for a one-unit Property. In 2024, the FHA loan limit for a single-unit home in a high-cost area is $1,149,825.
There are also higher loan limits in 2024 for “special exception areas,” including Guam, Alaska, and Hawaii. The higher ceiling on the FHA loan limit in these areas for a single-unit property is $1,724,725.
What to Know About VA One-Time Close Loan Limits
VA mortgages have no loan limits IF you have 100% of your VA loan entitlement to use on the construction loan.
If you need a VA loan with less than 100% entitlement, you are subject to a VA loan limit based on the county you’re buying in. The limits are similar to those set by the Federal Housing Finance Agency for conventional loans.
What to Know About Conventional Conforming Loan Limits
Single-unit construction loan and purchase loan limits for 2024 increase to $766,550 in many parts of the United States, with high-cost areas experiencing a loan limit increase to $1,149,825.
Building a home with a conventional mortgage in 2024 means paying 20% down, a general requirement for FICO scores well in the mid-600 range, and construction loan borrowers may be required to make their own down payment rather than relying on down payment assistance or gift funds.
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 $1,500,000 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.
Annual Loan Limits Review
Each year, the federal government reviews the national conforming loan limits. When conditions warrant an increase in those loan limits, they are adjusted for the new year, and the higher limits take effect on January 1st of the new year.
2024 construction loan limits are an important factor to pay attention to when considering your construction loan options.
Higher loan limits could add to your borrowing power if you want a low-down payment FHA or no-down payment VA construction loan.
What to Know About FHA Construction Loan Limits in 2024
Many participating FHA One-Time Close lenders won’t approve a construction loan for a larger property than a single living unit. Your experience may vary, but typically expect to build a home one unit large.
In 2024, the national conforming loan limit is $766,550. 65% of that number (for a one-unit home) is $498,257.
FHA One-Time Close construction loan limits for 2024 include rates for single-unit residences in high-cost and low-cost areas.
FHA national low-cost area mortgage limits are set yearly at 65% of the national conforming limit. There are different loan limits for each size of home, from one unit to four units. We only list the single-unit limit here for one very good reason.
FHA loans offered in high-cost areas have loan limits established yearly at 150% of the national conforming limit of $766,550 for a one-unit Property. In 2024, the FHA loan limit for a single-unit home in a high-cost area is $1,149,825.
There are also higher loan limits in 2024 for “special exception areas,” including Guam, Alaska, and Hawaii. The higher ceiling on the FHA loan limit in these areas for a single-unit property is $1,724,725.
What to Know About VA One-Time Close Loan Limits
VA mortgages have no loan limits IF you have 100% of your VA loan entitlement to use on the construction loan.
If you need a VA loan with less than 100% entitlement, you are subject to a VA loan limit based on the county you’re buying in. The limits are similar to those set by the Federal Housing Finance Agency for conventional loans.
What to Know About Conventional Conforming Loan Limits
Single-unit construction loan and purchase loan limits for 2024 increase to $766,550 in many parts of the United States, with high-cost areas experiencing a loan limit increase to $1,149,825.
Building a home with a conventional mortgage in 2024 means paying 20% down, a general requirement for FICO scores well in the mid-600 range, and construction loan borrowers may be required to make their own down payment rather than relying on down payment assistance or gift funds.
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 $1,500,000 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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