Decisions, Decisions: Building Your Home From The Ground Up
January 19, 2023
If you are considering building a home with a One-Time Close mortgage, there are choices you'll need to consider such as the types of materials you choose to build your home with. What kinds of choices?
These can range from the basic components of the materials used to build the home (including traditional materials and composites) all the way to the types of windows and doors you select.
Options You Should Consider
What kind of siding will your new home have? A stone veneer? Vinyl siding? Brick? Each type of material has its own advantages and disadvantages. In some cases paying more won't get you a longer usable life from the siding, in other cases you may be able to delay replacing the siding by a few years depending on the quality of your selections.
When it comes to doors, do you select wood or steel? Windows present a tricky problem for some--getting the most energy-efficient model and installation type is a top priority for some. For others, it's all about aesthetics. And one reason for that involves the homeowner who knows how long they want to keep the property.
Your Long-Term Plans For The Home
Some choices about the construction of the home might be informed by the borrower's plans. How long do you plan on staying in the property? If you plan to stay long-term, will some of today's choices affect how much you spend later on?
For example, building a house means having a brand-new roof. The roof has a typical usable life of 30 years though some sources say a roof can theoretically last between 25 and 50 years. Do you pay more for top quality and potentially avoid having to replace the roof sooner?
Does paying more actually get you a more durable roof? Those are the questions many borrowers will want to answer before they commit.
But if you do not plan to keep the home for that long, is investing in top-of-the-line options worth it? Or do you choose a more mid-priced option to save you some money upfront?
Some features may seem more cosmetic but may wind up helping you in the long run. Consider what you might need to include a backyard deck. You could select an all-wood option or one made of composite materials. Selecting higher quality materials means that when it is time to sell the home you may find the deck needs no further consideration--if it is still in good condition.
But if the deck was built from lower-quality materials, wear and tear on that deck could have you paying to replace it when the house needs to go on the market.
These are important considerations when building a home from the ground up on your own lot. Even if you think some of these issues are too far into the future to consider right now, having them on your checklist can be a big help when the time is right.
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 VA 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.
These can range from the basic components of the materials used to build the home (including traditional materials and composites) all the way to the types of windows and doors you select.
Options You Should Consider
What kind of siding will your new home have? A stone veneer? Vinyl siding? Brick? Each type of material has its own advantages and disadvantages. In some cases paying more won't get you a longer usable life from the siding, in other cases you may be able to delay replacing the siding by a few years depending on the quality of your selections.
When it comes to doors, do you select wood or steel? Windows present a tricky problem for some--getting the most energy-efficient model and installation type is a top priority for some. For others, it's all about aesthetics. And one reason for that involves the homeowner who knows how long they want to keep the property.
Your Long-Term Plans For The Home
Some choices about the construction of the home might be informed by the borrower's plans. How long do you plan on staying in the property? If you plan to stay long-term, will some of today's choices affect how much you spend later on?
For example, building a house means having a brand-new roof. The roof has a typical usable life of 30 years though some sources say a roof can theoretically last between 25 and 50 years. Do you pay more for top quality and potentially avoid having to replace the roof sooner?
Does paying more actually get you a more durable roof? Those are the questions many borrowers will want to answer before they commit.
But if you do not plan to keep the home for that long, is investing in top-of-the-line options worth it? Or do you choose a more mid-priced option to save you some money upfront?
Some features may seem more cosmetic but may wind up helping you in the long run. Consider what you might need to include a backyard deck. You could select an all-wood option or one made of composite materials. Selecting higher quality materials means that when it is time to sell the home you may find the deck needs no further consideration--if it is still in good condition.
But if the deck was built from lower-quality materials, wear and tear on that deck could have you paying to replace it when the house needs to go on the market.
These are important considerations when building a home from the ground up on your own lot. Even if you think some of these issues are too far into the future to consider right now, having them on your checklist can be a big help when the time is right.
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 VA 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.
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