Topics To Consider When Building Your Home in 2023

Are you thinking about applying for a One-Time Close loan to help you build a home in 2023? There are some important factors to remember going into the new year if you are thinking about a single-close construction loan.

A Chief Economist at Realtor.com was quoted by Forbes in a late 2022 article discussing (in part) the strong seller’s market in 2022; according to Forbes, the new year may bring a more unusual market in the wake of the strong seller's market of years past. 

In 2023 there may be some gains for those who want to build a home--prices may fall, and interest rates could do likewise. What does the housing market look like for the new year?

Market Conditions In 2023

Where mortgage loan interest rates are concerned, some in 2022 speculated that gains might not be realized until well into the new year.

Fed rate policy included multiple rate hikes in 2022 and mortgage rates increased to well above 7%. It takes time for market conditions to adjust to Fed actions like this...rates may fall, but they may take several months to do so according to multiple sources.

So, yes, if you are waiting for just the right time for mortgage rates may be waiting for a while. But if you are still in the planning and saving part of the construction loan process when you are ready to fill out loan documents you may find the mortgage market more borrower-friendly.

Just don’t expect the market to return overnight to those four percent-range interest rates we all got spoiled on for several years. 

We’re likely to see rates flirting with the five percent range at some point, but there are many variables that could influence that along the way come 2023.

Good Advice For Building A Home In 2023

The best advice going into the new year if you are not quite ready to commit? Don’t rush. Don’t let market conditions dictate your behavior when it comes to buying a new home.

If the rates aren’t low enough for your liking at application time, ask a lender if it makes sense to wait. You’ll want the advice just in case market trends indicate that another rate hike might be coming.

And you’ll want the advice simply to see what the lender advises--you can compare that advice to the information you get from competing lenders. Who talks straight with you? Who gives you a real answer to your direct questions? These are all important factors when shopping around for a loan.

Interest Rates

And what if interest rates dip in the meantime but you aren’t ready to commit to the mortgage? It’s a bad idea to let circumstances back you into a corner and force you to act...it’s better to wait when you aren’t ready no matter what mortgage rates are doing. 

If your credit isn’t ready for the lender to review, it won’t help to apply when rates are lower--if you risk being turned down for the loan it makes sense to wait until your credit is ready. Remember that if you must apply for a loan with lower FICO scores than you’d like, a bigger down payment may give the lender more justification to approve your mortgage than without it. 

If you anticipate having to apply for an FHA loan without being able to take more time to work on your credit, consider making the larger down payment and prepare accordingly.

Want More Information About One-Time Close Loans?

We have done extensive research on the FHA (Federal Housing Administration) and the VA (Department of Veterans Affairs) One-Time Close Construction loan programs.

We have spoken directly to licensed lenders that originate these residential loan types in most states and each company has supplied us with the guidelines for their products. We can connect you with mortgage loan officers who work for lenders that know the product well and have consistently provided quality service.

If you are interested in being contacted by a licensed lender in your area, please send responses to the questions below. All information is treated confidentially. 

OneTimeClose.com provides information and connects consumers to qualified One-Time Close lenders to raise awareness about this loan product and to help consumers receive higher-quality service.

We are not paid for endorsing or recommending the lenders or loan originators and do not otherwise benefit from doing so. Consumers should shop for mortgage services and compare their options before agreeing to proceed. 

Please note that investor guidelines for the FHA and VA One-Time Close Construction Program only allow for single-family dwellings (1 unit) – and NOT for multi-family units (no duplexes, triplexes or fourplexes).

In addition, the following homes/building styles are not allowed under these programs: Kit Homes, Barndominiums, Log Cabin Homes, Shipping Container Homes, Stilt Homes, Solar (only) or Wind Powered (only) Homes. 

Contact Us:  Send Us Your Request – Spam Safe 

Please send your email request to [email protected] which authorizes OneTimeClose.com to share your personal information with one mortgage lender licensed in your area to contact you. 

1.  Send your first and last name, e-mail address, and contact telephone number.

2.  Tell us the city and state of the proposed property.

3.  Tell us your and/or the Co-borrower’s credit profile: Excellent – (680+), Good - (640-679), Fair – (620-639), or Poor- (Below 620). 620 is the minimum qualifying credit score for this product. 

4.  Are you or your spouse (Co-borrower) eligible veterans? If either of you is an eligible veteran, down payments as low as $0 may be available up to the maximum amount your debt-to-income ratio per VA will allow – there are no maximum loan amounts as per VA guidelines. Most lenders will go up to $1,500,000 and review higher loan amounts on a case-by-case basis. If not, the FHA down payment is 3.5% up to the maximum FHA lending limit for your county.