FHA construction loan

[Ryan Schwartz]

Hi, my wife and I are mulling around the idea of purchasing land and building our own home. I didn't think this would be a feasible option as the loan guidelines for construction loans typically require at least a 20% down or 80% max cltv. I wasn't previously aware that there is an FHA construction to permanent loan out there which has a much lower down payment requirement. I've done some transactions as a realtor in residential real estate, but never for empty lots/land. On the residential side, I know that a prodcut such as the FHA 203k loan isn't usually too desirable if I'm a listing agent looking at a buyer and it's a competitive situation. Those loans can get complicated and take quite a bit of time. Is that the same case with the FHA construction loan product? I'd just like to know if I'm being realistic with this idea and if I'd be taken seriously as a competitive buyer? Everything else (DTI, FICO, assets for reserves) is solid, we just live in a very costly area where the median listings are in the 700k range and won't have a 20% down payment. The lots go for 150-200k and a friend had his home built for about $200 per square foot. This would allow us to get into our "dream" community and possibly have an awesome equity position immediately. Probably too good to be true... but I'm hoping not! Thanks in advance for any advice I may get.

-Ryan