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Can an FHA loan be used to build a home, or can it only be used on an exisiting structure?

  • May 10 2012 - Berryville
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Answers (3)

You can actually use a regular FHA loan on new-construction homes but you can't use a 203k (rehab)ilitation loan on a new construction home or a home that's never been completed since it must have a certificate of occupancy for one year first.

If you'd like to read a 4-part answer (much greater detail), go to Zillow --> Advice --> Search --> "FHA construction loan" --> "Do I qualify for an FHA construction loan?"

  • May 21 2012
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Hello,

Just existing.  However, the FHA 203k loan is for REHAB.

Good Luck,
Tom
  • May 10 2012
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existing structure only.   FHA has a program where you can get money to do repairs, additions, or improvements on an existing home. The program is called FHA 203k.

Building a brand new home will require a construction loan, which would then be refinanced into a regular mortgage.
  • May 10 2012
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