USDA One Time Close Construction Loan in Maine and Florida

Most people picture building a house as two separate loans. A short loan for the construction, then a brand new mortgage once the house is done. Two approvals. Two closings. A one time close rolls all of that into one loan with one closing up front.

USDA is one of four ways I do it. The other three are FHA, VA, and conventional. All four are available in Maine and in Florida.

What you can build with it: stick built homes, modular homes, and the land. There's no acreage limit on my end. Bigger parcels get reviewed case by case, and once a parcel gets over 25 acres the review changes, because no two pieces of land are the same.

Here's the honest list.

Already own your land? That helps. Land you already own can count toward the down payment. USDA's minimum is 0%, so it matters most when we're comparing USDA side by side with FHA or conventional for your build.

Whatever the loan program requires. On USDA, that means the program's own rules for income, assets, and credit, plus the household income check against the limit for your area. If we land on FHA, VA, or conventional instead, you follow that program's list.

I'll tell you exactly what to send once we know which program fits. No sense gathering a stack of paper for the wrong one.

All four do the same basic job: one loan, one closing, from dirt to finished home. The difference is who each one fits.

USDA. 0% down payment minimum. The tradeoff is the two gates: household income limits by area and property eligible area rules. A good fit if your land is in an eligible area and your household income fits the limit.

Conventional. Not a government program, so none of the USDA location or income rules apply. Down payment and credit depend on your file. It fits clients who don't fit the government programs or would rather not use one.

A few things stay the same across all four. You can't be your own builder. The builder has to meet my requirements. The 5% contingency reserve is built in. Land you already own can count toward the down payment.

The builder matters as much as you do on these loans. Here's what I need to see:

And one more time, because it catches people: you can't act as your own builder. I get it if you've been swinging a hammer your whole life. It's still a firm rule on these loans.

If the builder you like doesn't check every box yet, it's better to find out before you sign anything.

Building in Maine on family land, or on a bigger parcel out past town? Both can work. There's no acreage limit on my end, and larger parcels get looked at case by case, with the review changing once you're over 25 acres. If the land is already yours, it can count toward the down payment.

The USDA rules don't change when you cross into Florida. Income limits are still set by area, and the property still has to be in an eligible area. I don't eyeball a map and guess. I check the exact address.

I work with multiple builders in Florida too, so you're not stuck with whoever answers the phone first. Stick built, modular, and land are all on the table, with no acreage limit and a case by case review on larger parcels, and a closer look once you're over 25 acres. And if USDA doesn't fit the property, FHA, VA, and conventional one time close are right there as backups.