FHA Construction Loans Offer Affordability and Flexibility

Most banks and lenders will lend up to 80% or less on a construction to permanent scenario.  But for borrowers in NC and SC, we have great options for building a new dream home.  We combine the flexibility of an FHA loan with the benefits of construction financing.  FHA construction loans allow land owners to build a custom home, often with no down payment necessary.  There are some additional requirements when comparing FHA construction loans with using FHA to buy an existing home.  Currently there are rules which require ownership of the land for 6 months.  Prior to ordering the FHA case file number, the land must be owned for 6 months.  Check out the reasons to call us for building your new home!

 FHA Construction to Perm BenefitsFHA construction loans

  • 6 months to build stick built homes, 4 months for modular
  • 660 minimum credit score (many lenders require 700)
  • Primary residence only
  • Potential for no construction interest only payments
  • Stick built and off frame modular homes
  • Maximum loan amounts set by FHA county limits
  • Only available for North Carolina and South Carolina
  • Requires builder approval.  We have approved builders to choose from in many areas too

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Check out our VA Construction Loans offering 100% financing
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 Builder Benefits Using FHA Construction Loans

  • Offer up to 96.5% financing to build a client’s primary residence
  • Fast closings when the borrower provides documentation in a timely manner
  • Use less of your own funds
  • A flexible draw schedule 
  • Land equity may be used as down payment

Therefore all of these benefits help builders find more clients, which means more sales and more money.  So rather than a builder using own money or credit line to build a custom home, a buyer may use our construction to perm loan to take a lot of risk away from the builder.

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Call 844-340-6683 or send us your contact information
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Team Move lends in areas such as Wilmington, Leland, Hampstead, Jacksonville, Camp Lejeune, Whiteville, Shallotte, Southport, Elizabethtown, Lumberton, Fort Bragg, Pope Air Force Base, Fayetteville, Rockingham, Raleigh, Garner, Smithfield, Clayton, Goldsboro, Charlotte, Greensboro, Winston-Salem, Durham, Chapel Hill, Burgaw, Castle Hayne, Holden Beach, Supply, Ocean Isle Beach, Sunset Beach, Hubert, Tabor City, Carolina Beach, Kure Beach, Laurinburg, Topsail Beach, North Topsail Beach, Surf City, Sneads Ferry, Richlands, Wrightsville Beach, New Bern, Oak Island, Saint James, Wallace, as well as the rest of NC.  North Myrtle Beach, Myrtle Beach, Conway, Loris, Little River, Longs, as well as the rest of South Carolina and Virginia.

Written By: Russell Smith

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