Low Down Payment Construction Loans
FHA Construction Loan Solutions
Hurst Lending is pleased to offer FHA construction loans with a one-time close. You can get a construction loan with just a 3.5% down payment through this program. Home buyers can now build their dream home without fear of not qualifying for financing due to a lack of a down payment or a poor credit history.
Low Down Payment
Down payment of 3.5% instead of up to 30%.
A single loan for land, construction, and mortgage.
There is no danger of becoming unqualified during construction.
There will be no payments due while the building is being constructed.
FHA Loans for First-Time Homebuyers: Pros and Cons
As an experienced FHA Construction Lender, we understand the unique challenges and needs of homebuyers who want to build a home with a FHA construction loan. We can provide you with the information and guidance you need to determine if a FHA Construction loan is the right choice for you.
In addition to FHA construction loans, we also offer VA construction loans, which are specifically designed for military veterans. These loans offer the added benefit of zero down payment, allowing veterans to build their dream home with no money down.
We are committed to providing you with the best possible financing options to meet your specific needs and help you achieve your dream of building our dream home with a low down-payment. Contact us today to learn more about how we can help you secure FHA financing you need for your new home construction project.
PROS of FHA Contruction Loans
- One-Time Close: Homebuyers can combine land, construction, and a mortgage into a low-interest FHA Construction Loan. You’ll just close once and pay nothing during construction. FHA construction loans eliminate the risk of losing your permanent mortgage qualification during construction.
- Low Downpayment: FHA Construction Loans have the same 3.5% down payment as FHA home loans. FHA loans are a great option for customers who don’t have the traditional 20%+ down payment required for conventional construction loans. FHA loans also allow family members to gift the 3.5% down payment to first-time purchasers.
- Credit Score Requirements: FHA housing and construction loan applicants can qualify with credit ratings as low as 640.
CONS of FHA Construction Loans
- PMI Needed: FHA loans require mortgage insurance. This requires an upfront FHA funding fee and monthly mortgage insurance payments for the duration of your FHA loan (unlike a normal mortgage, where you can cease paying mortgage insurance when you reach 20% equity). Rolling the upfront payment into the loan costs 1.75% of the loan amount. If you have 20% equity in your house, you can convert from an FHA loan to a conventional loan to eliminate your mortgage insurance payments. Depending on conventional mortgage rates, this may benefit you. No PMI loan option is excellent if you want to avoid mortgage insurance or pay more down.
- FHA Loan Limits: FHA housing and construction loans have limits. FHA loan limits vary by county, even neighborhood, where homebuyers apply. Year-to-year FHA loan restrictions vary. Contact us to learn how much you can borrow with an FHA home or construction loan. We offer low-down-payment jumbo loans for FHA loan limits.
I’ve worked with Jay Hurst on several loans. Jay is extremely knowledgeable and helpful, and was able to advise me on the options for my recent purchase. Great guy to have on your side, and great rates!
Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.
The Hurst Lending Difference
Low downpayment options available.
With a quick closing and no red tape.
We offer some of the best rates available.
Creative approaches for unique situations
Our FHA construction loan rates are competitive.
Frequently Asked Questions
Can I roll in the land loan into the construction loan?
What is the difference between a 1x close and 2x close construction loan?
Can I buy the land with the construction loan?
What is the credit score requirements for a construction loan?
Can I choose any builder?
Can I build my own house?
What is the down payment requirement for a construction loan?
What type of home can be built with a FHA construction loan?
Our Construction Loan Offerings
We streamline the loan process and offer you the lowest downpayment.
About Hurst Lending
We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to get a No-Seasoning Cash-out loan; Being unable to obtain a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments? Our Industry-leading suite of short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.