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

FHA Construction Loans

3.5% down payment!

Low Down Payment Construction Loans

Client Reviews

Hurst Lending is proud to offer a one-time-close FHA construction loan program.  With this program you can obtain a construction loan with just a 3.5% down payment.  Home buyers can now build the home of their dreams without worrying about not qualifying for financing due to lack of a down payment or poor credit history.

Hurst Lending IconHurst Lending

4.8 ★★★★★ 41 reviews

Over $1 Billion in Loans Funded

And we are just getting started!  

We're Expanding!

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

Why Use Our Services?

Make a Smart Move




3.5% Down, Instead of up to 30%


Land, Construction and Mortgage in a Single Loan


Close Only Once – no risk of becoming un-qualified during construction


No Payments During Construction




Easier to Qualify


Quick Decisions


Quick Closing

“Football’s hard.
Getting a construction loan doesn’t have to be.”


Dat Nguyen, Hurst Lending Investor
Former Pro Football Player & Coach


Call 1-877-405-3465

We Also Offer Other Construction Loans


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.

 The Pros and Cons of an FHA Loan for First Time Home Buyers

FHA loans are a common option for first-time home buyers who are unable to pay the percentage down required by conventional loans or haven’t built up the higher credit score needed to qualify. FHA construction loans, just like regular FHA home loans, offer relaxed credit score requirements and low down-payments while offering buyers the option to roll construction costs into a single FHA mortgage loan with a one-time close. To find out if an FHA loan is your best option, please contact us for more information and a personalized recommendation.

+Pros of FHA Construction Loans

  • One-Time Close: With an FHA Construction Loan, home buyers with less-than-perfect credit can bundle land, construction, and a mortgage into a single, low-interest loan. You only have to go through the closing process once and you will make no payments during construction. With most other construction loan options, there is some risk that you will become unqualified for your permanent mortgage during the construction process, but not with an FHA construction loan.
  • Low Down Payment: The down payment for a FHA Construction Loan, just like a regular FHA home loan, can be as low as 3.5%. Comparing this low down-payment to the 20%+ down payment for a conventional construction loan, the FHA loan option is clearly a more attractive choice for buyers unable to pay high upfront costs. Additionally, down payments on FHA loans can be gifts or grants; an incentive allowing parents, family members, and friends to support the first-time buyers by gifting the 3.5% down payment for the loan.
  • Relaxed Credit Score Requirements: Depending on the exact loan requirements, applicants for an FHA home loan or FHA construction loan can qualify with credit scores as low as 620.

Cons of FHA Construction Loans

  • Private Mortgage Insurance (PMI) Requirements: FHA lenders do require home buyers to carry mortgage insurance. This involves an upfront cost, as well as monthly payments that will continue for the life of your FHA loan (unlike a conventional mortgage, where you can generally stop paying mortgage insurance when you achieve 20% equity in your home). The upfront payment can be rolled into the loan and typically costs 1.75% of the total loan amount. Once you have 20% equity in your home, you may be able to refinance from an FHA loan into a conventional loan to eliminate your monthly mortgage insurance payments (subject to your current credit status). Whether this would be to your advantage would depend upon conventional mortgage rates at that time. If you want to avoid mortgage insurance entirely, or have the ability to pay a higher percent down, there are no PMI loan options that may be a better fit for you.
  • FHA Loan Limits: The Federal Housing Administration does have limits on how much money you can borrow under an FHA construction loan or FHA home loan. The limit on FHA loans varies by the county, or even neighborhood, in which the home buyers are applying. FHA loan limits may also vary from year to year.  Contact us to find out how much you could qualify for with an FHA home loan or FHA construction loan. If FHA loan limits present a problem for your purchase, we offer low down-payment jumbo loans that may be appropriate for your situation.

About Hurst Lending

We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach 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 Domination Loans solve these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, cash-out, construction and traditional home loans.

Latest Blog Posts

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