Achieving your dream of building a new home can be made easier with the help of the right lender. By securing a Fannie Mae single close construction loan, you can simplify the process and make it more affordable.
With this type of loan, you have the flexibility to either purchase a plot of land or build on property you already own, all with a single loan that covers both the construction phase and the long-term mortgage for your new home. This streamlined financing option eliminates the need for multiple loans and makes the entire process more manageable.
Furthermore, Fannie Mae single close construction loans offer various down payment options, allowing you to choose an option that suits your financial situation. This provides you with greater flexibility and affordability when it comes to building your new single-family home.
Our Fannie Mae single close construction loan is a popular choice for individuals looking to build new single-family homes. It provides an easier qualification process and a streamlined approach to financing and constructing your home.
With this loan, you can finance the purchase of your lot, the construction of your new home, and the long-term mortgage needed once the construction is complete.
One of the key advantages is that you only need to go through the loan closing process once, rather than obtaining multiple loans for each stage. This simplifies the process and saves you from paying multiple sets of closing costs. Additionally, you’ll have a single appraisal, loan originator, and closing process.
Fannie Mae single close construction loans are insured by the Federal National Mortgage Association (Fannie Mae), a government-sponsored enterprise focused on providing affordable mortgage financing.
Because these loans are backed by Fannie Mae, they typically offer competitive interest rates. Borrowers may also have the option to lock in interest rates before closing, with the ability to adjust to the lowest available rate during the construction phase when converting to a long-term mortgage.
These loans are designed to simplify the complex process of home construction by providing a comprehensive financing solution.
To obtain a Fannie Mae single close construction loan, you can start by connecting with a lender. They will gather information about the home you want to build and assess your eligibility for pre-approval. The lender will conduct a thorough underwriting process, considering factors such as income, credit history, and your ability to repay the loan.
During the underwriting process, you’ll need to provide proof of ownership or plans to purchase the lot where the property will be built. The lender will work with you and your Fannie Mae-approved builder to determine the cost and timeline of construction.
Once the loan is closed, construction can commence within 30 days. Your construction team will provide regular updates on the progress, and the lender will manage the construction phase, including necessary inspections and compliance with Fannie Mae requirements.
Overall, the Fannie Mae single close construction loan offers a streamlined approach to financing and building your new home, simplifying the process and providing competitive financing options.
Not many lenders offer this unique loan product, so partner with Fidelity Home Group to build and finance your perfect home!
Features and Benefits:
• 5% Down Payment for Conforming New Construction for Primary Residence
• 40% Down Payment for Conforming New Construction for Second Home
• 680 Minimum credit score for Conforming / Fannie Mae Program
• Loan amounts up to $726,200, or more in high balance areas for Conforming Loans
• Rate can be locked at any time during the loan application/process
• Simple and flexible draw process with no set schedules
• Consolidate construction and purchase for only one set of closing costs and fees, loan type and term available in 30-year term only
Eligible Properties Include:
• Stick Built Homes
• Modular Homes
• Multi-Wide Manufactured Homes
New Construction Program Requirements:
• Maximum Construction Period is 9 months
• If property is in Wetlands, A Wetlands Certification issued by a local authority and recorded is required
• Max Acreage Is 10 acres
• All programs are Fixed Rate Mortgages with 30-Year term
• Minimum Loan Amount of $200,000
• Contingency Reserve – Up to 5% for Conforming
• No Judgments with an outstanding balance; must be satisfied/paid
• No Self-Builds, Self-Help, Sweat Equity are permitted
• Projected rental income on current residence CANNOT be used for qualifying purposes on new construction home
• No Single-Wide Manufactured Homes are permitted
Let’s build your Florida dream home together. Our Mortgage Experts specialize in home construction loans and work with you and your builder from application through completion of your new home. We handle all draws and inspections during construction.