FHA Construction Loan Experts - Louisiana
2022 FHA Construction Loan Limits for LOUISIANA. How to Get an FHA Construction Loan | Low down payment Land and Home Construction Loans
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FHA construction loan requirements
FHA construction loans have the same standards as FHA purchase loans, but with a few additional requirements. To qualify for any FHA loan, you must:
Have a credit score of 670 or higher (or at least 600 if putting down 10 percent)
Have a debt-to-income (DTI) ratio of no more than 43 percent (although there might be some flexibility here)
Make a down payment of at least 3.5 percent (or at least 10 percent if your credit score is lower than 670)
Ensure your desired loan amount does not exceed FHA loan limits
If you’re looking for an FHA construction loan, you must also provide documentation showing you’ll be working with a licensed contractor. For a standard 203(k) loan, you’ll also need to work with an approved 203(k) consultant. In addition, for any kind of construction loan and project, you must be prepared to submit the plans to your lender for review.
Looking For a FHA Construction Loan?
CLICK Here For Instant FHA Construction Loan Application!
FHA One-Time Close Construction Loans And First-Time Buyers
The FHA construction loan is not restricted to first-time home buyers and that includes construction loans. Some mistakenly believe FHA mortgages are only for first-time buyers or economically disadvantaged borrowers. This is not true. USDA loans have options specifically intended for those who meet household income caps and need-based requirements, but VA and FHA mortgages do not.
Types Of Home You Can Build
You cannot build an occasional-occupancy house using a USDA, VA, or FHA One-Time Close loan. You can’t build a home you do not intend to occupy as your home residence with these construction loans. Occupancy is required; investment properties, vacation homes, and non-residential properties are not approved for these loans.
You also cannot use an FHA construction loan, VA One-Time Close, etc. to build a tiny house, a shipping container home, barndominium, or other “unusual” properties that don’t have “comparables” to establish their value in that housing market. Log cabin homes and similar property types are much harder to find comparables for, don’t be surprised to find a lack of support for government-backed construction loans for these property types.
Looking For a FHA Construction Loan?
CLICK Here For Instant FHA Construction Loan Application!
FHA Loan Pre-Approval Process in Louisiana
In order to get pre-approved for an FHA loan you’ll need to:
Meet with a loan officer
Complete an application
Upload your loan documents
Review your options
Get Pre-Approved
What To Look for in a Louisiana FHA Lender
When working with any lender you’ll want to make sure that you are using someone who is knowledgeable about loan programs but also your location. They should understand your market, and be able to prepare you for buying a home.
Working with a lender who has multiple options can help you ensure you get the best deal and the lowest fees.
FHA allows:
Gift funds to help with down payment
Seller concessions to help with closing costs
Debt-to-Income Ratio up to 60%
Accepts Income Based Repayment Student Loans
Only 3.5% Down Payment or
10% Down Payment if Your Credit Score is 600