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Valued Member
Posts: 44
Registered: ‎03-12-2008
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Can you finance new construction w/ FHA loan?

I am looking at a new construction home , can I get an FHA loan or is FHA for older homes only?
Thanks in advance!
Valued Contributor
Posts: 2,340
Registered: ‎04-08-2008
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Re: Can you finance new construction w/ FHA loan?

Yes..you can go FHA...but look into the new construction...the builder I wanted to go with...said I could only go FHA through their preferred lenders...and of I went with another lender...I would have to go conventional...with a $2000 upfront fee...
Member
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Registered: ‎04-24-2008
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Re: Can you finance new construction w/ FHA loan?

We are building a custom home so cant get direct financing from the builder as you would from a  track builder like KB , Ryland, etc. We had to find our own financing. We went with Security Service who okayed us but then turned down our builder . So then we went with Imortgage services and they approved the both of us. All final fees and interest rate were the same even though it is a two time close. We are getting an interim loan and then when we go to close we are getting an  FHA loan, (unless we come in at 20% equity when the appraisal comes through).
Super Contributor
Posts: 6,624
Registered: ‎07-03-2007
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Re: Can you finance new construction w/ FHA loan?



slyhouse08 wrote:
Yes..you can go FHA...but look into the new construction...the builder I wanted to go with...said I could only go FHA through their preferred lenders...and of I went with another lender...I would have to go conventional...with a $2000 upfront fee...

and that builder violated RESPA......
 
yes, you can go fha

 
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Valued Contributor
Posts: 2,340
Registered: ‎04-08-2008
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Re: Can you finance new construction w/ FHA loan?

What is that???...
Super Contributor
Posts: 6,624
Registered: ‎07-03-2007
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Re: Can you finance new construction w/ FHA loan?

 
i hate it when builders steer consumers like that
* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Valued Member
Posts: 44
Registered: ‎03-12-2008
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Re: Can you finance new construction w/ FHA loan?

thanks for the info everyone!
 
I checked directly with the home builder and they said yes you can go FHA and you do NOT have to use their preffered lender. Of course they would like you to but you don't have to.
Established Contributor
Posts: 852
Registered: ‎09-18-2007
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Re: Can you finance new construction w/ FHA loan?

Check with them...there might be incentives. I got 10,000 in upgrades for going with the developers preferred lender...Their mortgage people check all over, but if I went with the preferred (Wells Fargo, FHA) its a good amount of upgrades, pretty much covered everything.

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Frequent Contributor
Posts: 263
Registered: ‎03-27-2008
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Re: Can you finance new construction w/ FHA loan?

I'd check with their lender too.

Navy Federal actually advised me to use my builder's lender b/c it came with 2k in closing costs. And it ended up also comign with a buy out of my current lease
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722
Valued Contributor
Posts: 2,340
Registered: ‎04-08-2008
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Re: Can you finance new construction w/ FHA loan?

Yeah...the builder offered me...$2000 in upgrades...and partial closing costs paid...and a guaranteed 5.875% with two of their preferred lenders...
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