1-877- 292-7350 jhurst@hurstlending.com

FHA Construction Loans

Low 3.5% downpayment available!

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%.

One Loan

A single loan for land, construction, and mortgage.

Close Once

There is no danger of becoming unqualified during construction.

No Payments

There will be no payments due while the building is being constructed.

FHA Loans for First-Time Homebuyers: Pros and Cons

First-time homebuyers often choose FHA financing since they don’t have a large down payment. FHA construction loans, like FHA home loans, include low down payments and flexible credit standards. Buyers can wrap building costs into a single FHA mortgage loan with a one-time closure. We can help you decide if a FHA Construction loan is right for you.  We also offer a VA construction loan with 0 down-payment for military veterans.

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 for my homes over the years, for purchases and refinancing - and just completed one that was a long time planning. Jay is extremely knowledgeable and helpful, and was able to help advise me thru a lot of the nuance the options for my recent purchase, and provide a lot of clarity for me.Great guy to have on your side, and great rates!.

Kevin B.

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.

Naomi R.


Hurst Lending
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The Hurst Lending Difference

Funding Choices

Low downpayment options available.

Quick Decisions

With a quick closing and no red tape.

Great Rates

We offer some of the best rates available.

Problem Solving

Creative approaches for unique situations

Competitive Rates

Our FHA construction loan rates are competitive.

Frequently Asked Questions

Can I roll in the land loan into the construction loan?
If you currently have a land loan and plan to build on that property, you must roll the land loan into the construction loan.
What is the difference between a 1x close and 2x close construction loan?
A 1x close construction loan provides both the construction loan financing and the permanent loan financing with one closing. You do not have to refinance the construction loan into a permanent loan when the house is complete. With a 2x close construction loan, you will have two closing – one for the construction loan and the other for the permanent loan when you the house is complete. You must refinance the construction loan into a permanent loan once the house is complete.
Can I buy the land with the construction loan?
Yes, you can combine the purchase of the land and the construction loan into one loan with one closing.
What is the credit score requirements for a construction loan?
The minimum credit score for a FHA construction loan is 640.
Can I choose any builder?
Yes, you can choose any builder; however, there is a builder acceptance review process. We must approved the builder based on years of experience, size of the business, and in some cases, credit scores.
Can I build my own house?
At this time, we do not offer any products that allow for self-built homes. We do require a separate, non-related, general contractor on all of our construction loan products.
What is the down payment requirement for a construction loan?
The minimum down payment requirement is 3.5% for a FHA construction loan.
What type of home can be built with a FHA construction loan?
We provide FHA construction loans for single family homes. We, unfortunately, do NOT offer construction loans for log cabins, multifamily residences (duplex or fourplex), or container homes.

Our Construction Loan Offerings

We streamline the loan process and offer you the lowest downpayment.


With this program you can obtain a construction loan with just a 3.5% down payment.


We are one-time closing construction loan experts with just 10% to 15% down. 


With this program you can obtain a VA construction loan with zero down payment.

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 Losing your dream home in a bidding war; Trying to buy before you sell; Had your buyer fallout; or Being on a fixed income and needing your equity to purchase a new home? Our Industry-leading suite of Dominate with a Cash Offer line of credit/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.

Over $1 Billion in Loans Funded

And we're just getting started!

We're Expanding

Offering loans in Alabama, Colorado, Florida, Georgia, Idaho, Iowa, Louisiana, Oklahoma, Oregon, Pennsylvania, Virginia, Texas and Washington.



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