FHA New Construction Loans
FHA New Construction Loans
We offer programs to acquire land and build your primary residence. One-time close. 3.5% minimum down payment. No payments during construction.
Reasons to choose a FHA
One-Time Close Construction Loan
Combines purchase/refinance and renovation costs into a single conventional mortgage with one monthly payment, avoiding separate loans, multiple closings, or high-interest options like HELOCs, personal loans, or credit cards —so you can tackle fixer-uppers without draining your savings.
30-year VA New Construction Guidelines
To qualify for a conventional new construction loan, you will need:
Apply for a FHA new construction loan
1 unit properties are eligible for primary residences. FHA new construction loans cannot be used for second homes or investment properties.
No, however, you are able to obtain a 6% builder credit, which may be sufficient to cover substantially all of your closing costs.
On a typical conventional purchase or refinance, Scout Advisors can close in as little as 14 days. With a FHA new construction loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to obtain builder approval, project approval and an appraisal.
We have construction terms ranging from 120, 180, 240 and 360 days. 360 day period must be approved on an exception basis
The builder and borrower have agreed to the build time and the lender does a virtual inspection and checks for all permits before each draw. If there were issues or delays these should be caught before the end of the build period. The lender will work with the builder to get back on track.
Any expired credit documents will be need to be updated with the lender before the loan can be modified to a fixed loan (15 or 30 year). No new loan documents need to be disclosed to the borrower unless the updated credit documents show the borrower is ineligible for the closed loan. If the borrower is ineligible for the loan already closed, the borrower will need to work with the lender to be requalified for a new loan.
Yes - Construction of doublewides are eligible. However, we cannot finance a single-wide
Yes. The existing home foundation can be used for the new home, if allowed by local building codes. The demolition cost can be included in the budget.
Reach out to your Scout Advisors mortgage expert to obtain the new construction project and builder forms
