Post # 1
Wondering if anyone knows about using a FHA loan to build a house instead of purchasing one? I just graduated so FI and I haven’t been able to save a lot of money. However, we both have good full time jobs and good/excellent credit scores. An FHA loan seems like the best option for us, but we can’t find a house in our limited search area (FI is a firefighter and needs to live in a specific area) so we are thinking of building. Thanks for any help!!
Post # 3
@FutureMrsMK: i think that as long as its not a construction loan you should be able to, ie. buying your own land and supplies. If you go through a builder it should be the same as buying a house.
Post # 4
@FutureMrsMK: I know that the new build townhomes by us are advertising FHA loans on a banner, so I think it’s definitely doable :-).
Post # 5
For what it’s worth… FHA loans require 3.5% down and generally have higher interest rates and lifetime PMI (I think that’s a new thing starting this month). You can get a convential mortgage for as low as 5%, which is just 1.5% more down. Your interest rate will be lower and you can stop paying PMI once you get to a certain amount of principal paid off.
Post # 6
@copewedding: Thank you! I didn’t realize conventional mortgages allowed that low of a down payment. We are meeting with our bank/credit union this week.