Do You Need To Buy Land To Build On?
Building on a new plot of land can provide some borrowers with additional customization and personalization options. It may offer greater control over the design and layout of your dream home.
For example, if you want a taller home, you can search for a plot of land to accommodate that. If you want a wider single-story home, you can search for land to meet that need.
Location flexibility is another advantage. Why? You can search for plots of land to buy near your preferred schools, services, and amenities. Do you feel a more remote property will help you escape the city's noise and activity? This is an option, too.
And don’t forget that investing in land can lead to potential appreciation over time, increasing the property's overall value. The longer you own the home, the more potentially valuable it will be.
Challenges of Buying a New Plot of Land
When purchasing undeveloped land, you should add site preparation and development expenses to your list of things to save money for. Will you have to pay for clearing, grading, and other work to make the land suitable for building? What about local utility connections?
Anticipating these expenses is crucial for proper project budgeting. Many costs are critical for project completion. Don’t overlook them.
A vital issue some don’t think about until much later? It may take a long time to secure proper permits and other required documentation. This can be as important as having a contingency fund, building in extra time for delays, etc.
Permit processing times vary greatly in some markets. If your title search has complications, this may also require extra cash.
It also pays to look into local zoning (and related issues) that may apply to your One-Time Close loan. Are there unique circumstances to think about, such as protected habitat areas or regional flood zones?
Many issues are to consider, including soil quality, topography, drainage, and potential environmental hazards. Some of these variables may require expert advice, and the more time you give yourself to work out details like these, the better. It never pays be in a hurry with a construction project.
Want More Information About One-Time Close Loans?
We have extensively researched the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs.
We have spoken directly to licensed lenders that originate these residential loan types in most states, and each company has supplied us with the guidelines for their products. We can connect you with mortgage loan officers who work for lenders who know the product well and have consistently provided quality service.
If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially.
OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher-quality service.
We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed.
Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allow for single-family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes).
In addition, the following homes/building styles are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes.
Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you.
1. Send your first and last name, e-mail address, and contact telephone number.
2. Tell us the city and state of the proposed property.
3. Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639), or Poor- (Below 620). 620 is the minimum qualifying credit score for this product.
4. Are you or your spouse (Co-borrower) eligible veterans? If either of you is an eligible veteran, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines.
Most VA lenders will go up to $1,500,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.
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February 2, 2024Are you unsure if a One-Time Close construction loan is the right choice in 2024? Building is better than buying for some, and if you feel that describes you, there are some steps to take when looking for the right VA or FHA single-close lender, especially if you are considering a conventional version of the loan. Comparison shop, and know your options before you commit to a specific lender.
February 1, 2024There is a FHA / VA government backed One-Time Close construction to permanent loan program available in Illinois for qualified applicants who are looking to build a brand-new home versus a resale. Due to local housing shortages, this is a great time to consider building your dream home.
January 25, 2024Do your mortgage loan options seem confusing? Home loan types and the application of those home loans have their own time frames and cost considerations. You'll want to know the details of each option and decide whether you're right for building or buying existing real estate. Building and renovating typically cost a bit more than buying an existing home. For those not in a hurry, the options below each have their own advantages.