Hi all. I have a question. I was told by a banker that lots of times buyers will have a contractor finance the building of a new home and the home will be on a lien. Then the buyer buys it from the contractor instead of getting a construction loan. So could a person use an FHA loan to buy a new house from a contractor is this situation? The HUD website has a section on FHA construction loans, but every bank I have talked to says they have never heard of this at least not in my area. Any input? We own an acre of land, but our credit scores are in the 600's and the very negative things won't drop off till next november and we would like to apply this spring. DDo you think I coudl use an FHA loan to buy a house this way? Please respond. thanks a lot. jody
Hi Jody, I am doing something similar. Although my builder is buying my land as well. My only question is why would you need to go FHA if you own the land already? I do not know what land goes for where you live but here (lower Michigan) it costs between 50-80,000 for an acre.
wow, that's a lot! actually I live in rural PA. For pert approved land here, a lot in a nice neighborhood/rurual development might cost around 8,000 to 18,000. The land we own is up in the woods, more isolated, not prime location. It's being pert tested next week, I guess maybe then I'll know the value. Good to know your doing something similar though. Do you have any negativve item son your credit report? thanks for responding, I really appreciate it. JODY
