Construction-Perm
There are a lot of good reasons to build your new Florida home with an FHA construction loan, especially if one or more of the following apply to you:
- You don't have a lot of money for a downpayment
- You want your monthly payments to be as low as possible
- You don't want your monthly payments going up
- You're worried about qualifying for a loan
- You don't have perfect credit
- You're worried about what will happen if you fall behind on your payments
An FHA construction loan also offers more protection to help you keep your home should you encounter hard times after buying your home, the FHA has many options to help keep you in your home and avoid foreclosure.
Land Purchase
Our FHA construction loan allows you to purchase the land and build your home. If you already own the land, we may be able to use equity from it for downpayment on the FHA construction loan. If you've found the right lot and want to buy it but won't be able to build for several years, FHA does not offer a land loan guaranty so, check out our vacant land loans page.
Plans and Specs
Just like a conventional construction-perm loan or VA construction-perm, FHA requires that a set of plans and specifications be drawn up and provided as part of the initial loan application.
Mortgage Insurance
On all FHA construction loans there is an up front mortgage insurance premium equal to 1.5% of the loan amount that is paid at closing. This mortgage insurance premium is usually included in the mortgage meaning, you pay over the life of the loan. On loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater, an additional annual mortgage insurance premium of 0.5% of the loan amount is required by FHA in monthly installments.
See Also
Customers considering an FHA construction loan should also consider our conventional construction-to-permanent, and VA construction-perm programs.