You must use a licensed, insured, and bonded general contractor. You generally cannot act as your own builder (Self-Build) under this program.
You save money and time by avoiding a second round of paperwork and closing fees once the house is finished. Eligibility and Requirements fha loan to buy land and build home
You will need a formal contract for the land and a detailed construction contract with your builder, including floor plans and a line-item budget. You must use a licensed, insured, and bonded
Once approved, you close on the loan. The lender pays the land seller and sets up an escrow account to pay the builder in "draws" as milestones are reached. Eligibility and Requirements You will need a formal
Most lenders require a minimum score of 620, though some may allow lower scores with a higher down payment.
You can qualify with as little as 3.5% down, which can be applied toward both the land and the build.
Your monthly debt obligations should typically not exceed 43-50% of your gross monthly income. The Application Process