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Can you finance new construction w/ FHA loan?

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gabbismommy01
Valued Member

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!
Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

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...
Message 2 of 10
yaslysmen
Member

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).
Message 3 of 10
DallasLoanGuy
Super Contributor

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

 
Retired Lender
Message 4 of 10
Anonymous
Not applicable

Re: Can you finance new construction w/ FHA loan?

What is that???...
Message 5 of 10
DallasLoanGuy
Super Contributor

Re: Can you finance new construction w/ FHA loan?

 
i hate it when builders steer consumers like that
Retired Lender
Message 6 of 10
gabbismommy01
Valued Member

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.
Message 7 of 10
demi
Established Contributor

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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Message 8 of 10
Anonymous
Not applicable

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
Message 9 of 10
Anonymous
Not applicable

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...
Message 10 of 10
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