Things To Consder When Building Your House
The planning stages of any mortgage are crucial, but a One-Time Close mortgage loan’s planning includes more than saving for the down payment, working on your credit, and lowering your debt ratio.
Your planning for a construction project should also include researching local contractors, considering which materials and features to spend more money on, and the duration of the features you decide to install.
Planning The Size Of Your Home
Why is this the first on our list? Because your One-Time Close construction loan may be approved for a single-unit property only, depending on the lender.
If you have plans to build a multi-unit home, you may need to shop around more for a lender willing to offer this type of loan. Plenty will not, and you’ll want to know in advance.
How Well Do You Know Local Contractors?
Some local agencies may have a reputation, good or bad. Do you know what people have said about past services rendered? It’s wise to compare multiple contractors to see who has the best prices AND the best reputation.
You should research the contractors available to you early and be sure to check their online reputation before discussing things with a lender.
Some lenders may have preferred contractors; don’t accept this as a stamp of approval that the work will be done as expected unless their online and local reputations bear that out.
Spend More On Critical Home Infrastructure
Do not skimp on your home's foundation or framing. Choosing more durable siding and roof options also makes a lot of sense.
Do you want to repair features in your new home sooner or later? If you choose better quality plans and materials, “later” is likely your option, barring unforeseen circumstances like a fire, flood, or other natural disasters.
And be sure to ask other homeowners in the area, if possible, if there are local environmental issues to be aware of that might inform the construction of your home. Do you need to consider more energy-efficient appliances, storm doors, and windows because the home is in a region with extremes of cold in the winter?
Do you need a more powerful HVAC system to handle hot and muggy summers? Are there known pests that could affect your home? Sometimes “asking local” pays. Even your loan officer may be able to help with issues like anticipating local climate variances.
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 consistently provide 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.
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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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