FHA One Time Close Construction Loan in Maine and Florida

For FHA, you must be buying the land at the construction loan closing or already own it. There is no set acreage limit on my end, larger parcels are reviewed case by case, and the review changes once a parcel is over 25 acres. Rural Maine lots often have no public water or sewer, so a well and septic system need attention before the loan closes. Site work, septic design, the driveway, power and water belong in the construction budget from day one. Confirm legal access, zoning and utilities before buying rural land.

This is worth discussing if you plan to build a primary residence and want the lot purchase, approved construction work, and permanent loan considered together as one construction to permanent loan. FHA client, appraisal, property, and mortgage insurance requirements still apply. Your documentation is whatever the FHA program requires, nothing extra.

The loan can cover a stick built home, a modular home, and the land. If you already own the land, it can be used toward your down payment, so tell me when you bought it and whether there is a balance against it. If you are buying a lot, I need the purchase contract and a workable build plan before discussing the closing structure.

The lot must be acceptable collateral for the finished home. Access, utilities, zoning, permits, site conditions, and the completed home's appraisal matter. There is no set acreage limit. Every property is reviewed case by case, and once a parcel gets over 25 acres the review changes, so larger parcels need a closer look before you commit to the land. A rural parcel may need a plan for water and wastewater before financing can proceed.

The builder must have at least a three year history and 10 or more projects, with at least five completed, plus a Dun and Bradstreet score or an acceptable credit score, and proper references. You cannot act as your own builder. The builder also needs a detailed contract, plans, specifications, and a construction schedule. I work with multiple builders in each state if you do not have one yet.

Few lenders offer FHA one time close construction loans, and the ones that do set their own rules. As a broker, I shop the program for you, check that your builder can be approved, and confirm the credit and down payment rules before you commit to plans. Not everyone will qualify.

On an FHA one time close, I look hard at the builder before anything else moves. Here's the list:

One firm rule: you can't be your own builder. Even if you've built before, FHA construction needs a qualified builder on the contract. For a home you'll live in, construction on my end is one time close, through USDA, FHA, conventional and VA, in Maine and Florida. I also finance ground-up construction for investors building rental properties, and the finished, leased rental can then be refinanced into a DSCR loan as a separate closing. I don't do owner builder loans. I work with multiple builders in Maine and in Florida, so if you don't have one yet, I can help you find one that fits the list.

FHA construction typically needs a 660 or better credit score. The FHA down payment minimum is 3.5%.

Already own the land? It can count toward the down payment. That's one of the first things I want to know about your build, so tell me early.

As for paperwork, you'll provide whatever the FHA program requires. I'll give you the exact list once I discuss through your file.

Every build hits something nobody planned for. That's why every FHA one time close I do has a 5% contingency reserve built in. It's there for the surprises, so one change on the job site doesn't stall the whole project.

The lender reviews the completed home as proposed, the construction budget, and the client's file before closing. After closing, an approved draw schedule governs releases to the builder as work is documented. A 5 percent contingency reserve is built into the budget for surprises on site. Changes to scope or cost may require approval before more funds are released.

Ask how the lender handles inspections, change orders, unfinished work, and the transition to the permanent phase. The actual schedule and disbursement rules depend on the selected program.

In Maine, talk through site access, winter scheduling, and whether a rural lot needs a well or septic system. In Florida, confirm local permits, wind and flood requirements where applicable, insurance, and site drainage before finalizing your contract.

For a state specific overview, read the existing Maine and Florida one time close guides linked below. I can help compare a real lot and builder against available lender guidelines.

I do FHA one time close construction all over Maine. Stick built, modular, and land are all covered, and there's no acreage limit on my end. Bigger parcels get a case by case look, and once you're over 25 acres the review changes.

Already own a piece of land in Maine, maybe land that's been in the family a while? It can count toward your down payment. Pair that with a builder who meets my requirements, a credit score that's typically 660 or better for FHA construction, and the 5% contingency built into the budget, and you've got the information I need to review the plan. I work with multiple builders in Maine, so I can help you find one who fits your area and your house.

Same program, same rules, different state. In Florida I cover stick built, modular, and land, with no acreage limit and larger parcels reviewed case by case, with a closer look over 25 acres.

The builder still needs the 3 year history, 10 or more projects with at least 5 completed, a Dun & Bradstreet score or acceptable credit, and proper references. You still can't be your own builder. FHA construction still typically wants a 660 or better credit score, and land you already own can still count toward the down payment. I work with multiple Florida builders too, so if you're starting from scratch, I can start with that conversation.