Do most new home builders accept FHA financing? I have been pre-approved for an FHA loan and would really love to have a new home built. Possible?

Asked by Ashleyvictoria, Jacksonville, FL Mon Mar 15, 2010

This will be my first home. I have heard that not everyone accepts FHA loans. Do most new home builders accept FHA financing or do most require other types of loans?

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
Lillytena, Other Pro, South Miami, FL
Sat Aug 13, 2016
Generally, when homebuyers have their homes built from the ground up they use construction loans followed by permanent mortgages. Fortunately, a mortgage product called a "construction-to-perm" loan is available that doesn't require two separate loans complete with separate closing costs. While a construction-to-perm loan might seem likely only for more well-to-do homebuyers, the Federal Housing Administration actually does offer its own version. An FHA one-time close mortgage truly allows you to have your home built and financed under one loan.

The same county level maximum lending limits FHA applies to all its mortgages also apply to its one-time close home loans. Nationally, the FHA loan limit is $417,000, though limits in high-cost counties are as high as $729,250. FHA one-time close mortgages involve several stages that lenders must handle and they can be a bit complex. Many FHA-approved lenders choose not to offer the agency's one-time close home loan product or will limit it to manufactured or modular homes only.

Web Reference: http://USAConstructionLoans.com
1 vote
Las Vegas Mo…, , Las Vegas, NV
Thu Mar 25, 2010
Don't think you'll have any problems using your FHA loan on a newly built home. We had an FHA loan on our first new built house and was given incentives for using their preferred (in house) lender. Just be cautious of the rate and the program as home builders are notorious in "building" those incentives back into the loan. I've always felt there was a major conflict of interest when the builder becomes your lender or has a lender in their back pocket.
1 vote
Dan Chase, Home Buyer, Texas City, TX
Mon Mar 15, 2010
Over 80% of loans made are FHA. Those builders want at least 80% of people to be able to buy. Of course they will accept it.
1 vote
Steve McRory, Agent, Fort Lauderdale, FL
Thu Sep 1, 2016
I'd look at avoiding FHA and look at putting less % down with No PMI and on a higher priced home if you desire something nicer than what FHA max loan amounts limits you to purchase.

That "LIFE OF THE LOAN" (does not drop off anymore once you hit 80% to 78% LTV anymore) monthly Mortgage Insurance and that horrendous 1.75% in Points Financed FHA MIP fee that you pay interest on too, may change your mind once you consider all the factors.

Try looking at 97% No PMI loan with a purchase scenario of most all closing costs paid for you.
0 votes
FHA Mortgage…, , Jacksonville, FL
Thu Sep 1, 2016
Yes, most home builders have no issue with FHA, especially those building under 300K. We are here in Jax and would be happy to review all your options.

FHA Mortgage Source
Florida FHA loans, 7 days a week
0 votes
Valoanfinanc…, Home Buyer, Orlando, FL
Wed Aug 17, 2016
FHA loan is the best option for the low to moderate income borrower who are unable to give huge down payment, and therefore I fond of the loan to buy a new home.
0 votes
Michael Russ…, , 75006
Mon Mar 15, 2010
It is any sellers preference for the buyer to have conventional financing; saves money, time and paperwork. Most of America is in a buyers market right now and most sellers will take whatever financing comes with a buyer. It is very likely that every home builder you encounter, in your price range, would accept your f.h.a. financing. The costs of inspection(s) and appraisals are typically more and the paperwork is insane. If you can find the right program it might be to your advantage as a buyer to go conventional; if you can avoid p.m.i.(m.i.p.). I know of at least one lender who has this option with low down payment needed. Best of luck to you!
0 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Mon Mar 15, 2010
I have not met one that didn't yet. I must say that in my area, they new homes are indeed way overpriced and I see as soon as they close, there is a loss between $50,000 - $100,000. Others may disagree with that but that is what I have seen here. So... that is an important investment decision to consider seriously!!!

Good Luck!!!
Web Reference:  http://www.di4homes.com
0 votes
Jane Grant, Agent, Aguanga, CA
Mon Mar 15, 2010
In my opinion, Shonda gave you the best answer and if you have representation from the first visit Shonda can help you negotiate your upgrades and also your closing costs.

I have helped many homewoners purchase new homes here in my area and I always get them a better deal than if they simply walked into the sales offices themselves. I am also a witness to the contract and I can explain it.

The builder's usually want you to use their lender in order to get incentives and an agent can make sure you are getting the best interest rate also.

Remember that the sales agents in the New Home Builders offices work for the Builder, (seller). But take your agent with you on the first visit.
Web Reference:  http://www.soreal.biz
0 votes
Christian Wi…, Other Pro, Jacksonville, FL
Mon Mar 15, 2010
oops, just scrolled down and read all the answers. Your 1st answer from Lynn covers this as well. Good answer Lynn!
0 votes
Christian Wi…, Other Pro, Jacksonville, FL
Mon Mar 15, 2010
Wow, cant believe I'm the only one to think of this after so many answers. Builder is not worried about FHA it is FHA that must accept the builder. If it is tract housing in a subdivision it is usually no problem (with the exception of some condos) since the builder will have the entire subdivision approved for FHA/VA but if you are using a small time builder on an individual lot it would be frugal to ask him if there is a problem with using FHA financing or if they have built a house using FHA financing before. It would be terrible to build a house and FHA will not approve you because the builder is not approved.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more