How to Finance Duplex New Construction with Low Money Down

[Brice McKee]

Hi all,

I have an opportunity to build a new duplex on a lot in an appreciating area. I'd appreciate some expert advice on what the best financing strategy may be. I don't have 20% to put down, so I had initially through FHA (I will live in the property) construction loan, however now I am realizing they only finance 1 unit dwellings.

Does anyone else see a way to do this with low money down? Working with a private bank to see about 10% down with interest only until the property is built.

Thanks all

[Andrew Postell]

@Brice McKee nearly all new construction loans will require 10% down minimums. A standard FHA loan on an existing property is only 3.5% and you can even get a Fannie/Freddie loan with 3% down. If you already own the lot itself then the equity in the lot can be used as your downpayment. You can certainly build a new home with an FHA loan as long as you have the 10% down requirement.

@Rod Cordsen thanks for the mention.  Always appreciated!