FHA Construction to Permanent Loan (NJ)

[Abby Flynn]

Hellloooo BP community,

I recently moved back home to NJ and have been on the hunt for my first property. While I am fine renting while I search for the right investment, my dream would be to build (for my own personal home). I recently came across this "FHA construction to permanent Loan" option which seems almost too good to be true, so I wanted to get some input on how this works and where I might be able to find a lender. What are typical down payment requirements? Are there any property conditions that would prohibit approval of this loan? What does this process look like overall?

[Clayton Silva]

We offer product like this and it can be a very arduous task. Down payments are still standard for FHA or conventional (3.5% of the total cost, purchase+construction) and rates are on par with standard FHA rates. The issue is that these loans undergo significant underwriting and can take up to 60 days to close which most sellers may not tolerate. Still doable, just a much longer process!!