Can you get a FHA loan for a new construction, if you are planning to build your house yourself?
- Monte PLv 79 years agoFavorite Answer
FHA loans are mortgage loans, they are not construction loans, typically.
If you are building a home yourself, you would need to get a construction loan. Typically the way it works is this: You apply for the loan, and you are qualified for a mortgage. If you qualify for the mortgage, the bank will give you a construction line of credit. You use the line of credit to build your house, paying interest only on the loan until the house is complete. At that point, you close on your mortgage, and the mortgage pays off the construction loan.
- 9 years ago
Yes, you can get a construction-to-permanent loan to build a new home. The land can be rolled into the project. Ex: $50,000 for land + $200,000 for the home = $250,000 for the total project.
Your down payment will be 3.5% of the $250,000.
I work on FHA construction loans every day.
Email me if you have any more questions....