Finance construction and your mortgage with one loan.

Down payment as low as 3.5%.

Have your dream home built in six months.

Home Construction Loans | GoKToday

One Application. One Closing. One Loan.

Looking for a mortgage solution that lets you build your dream home and purchase the land to do it without the hassle of multiple loan applications? Then consider a One-time Close Home Construction Loan through AmeriFirst.

This FHA-backed loan first finances the cost of the construction as a short-term interim loan. Once work is complete, it converts to a traditional 30-year, long-term permanent mortgage.

Unlike other new home construction lending, this is a one-time close loan. That means buyers don’t have to worry about qualifying for the construction loan, then re-qualifying for the mortgage. FHA gets it done with one loan approval. Benefits include:

  • The construction loan is made directly to you
  • The lot can be purchased at closing, or you can build on land you already own
  • Construction can begin as soon as the loan closes
  • Down payment of at least 3.5%
  • Saves you time and effort
    • One application, one closing, one loan
    • Eliminates worries of another loan qualification, concerns over a new appraisal, and dual fees associated with the second loan
  • Six-month construction period starts within 30 days of closing
  • Build your dream home!

How much can I borrow?

Depending on how much you qualify to borrow and how much you pay down, the maximum mortgage amount is 96.5% of the appraised value or acquisition cost of the property, whichever is less.

Acquisition Cost

If you purchase the land at close, or have owned it for six months or less, the acquisition cost includes the builder’s price to build your new home and the cost of the land.

If you have already owned the land for more than six months, the acquisition cost includes the builder’s price to build your new home, plus the value of the land (from a site value appraisal).
* Existing equity in land you own can be used toward the down payment, but cannot be used to pay for closing costs or be withdrawn as cash.

What do I pay?

During the construction of the home, make interest-only payments based on the actual balance that has been withdrawn. Those payments will increase as draws are processed and your principal balance increases.

When the home is finished, the construction loan is modified to a standard FHA 30-year permanent loan with a fixed interest rate and FHA mortgage insurance (MIP). New full payments will include principal, interest, and escrow (for insurance, property taxes, and FHA mortgage insurance).

Sounds good! How do I get started?

Work with your loan originator to begin the pre-qualification process — this is necessary to estimate how much you can afford to borrow. The loan approval is issued by an underwriter once they have fully reviewed all of your required documentation.

When you’re ready to submit a full application, contact your loan originator to put the wheels in motion. As with any loan, you will need to submit standard documentation, as well as construction-related documentation. This can include:

  • Deed settlement/statement for the land or contract to purchase the land
  • Contract with a licensed builder (borrower can’t be the builder)
  • Builder information
  • Plans for the home construction
  • Insurance
  • Building permit
  • Boundary survey

Click here for complete details on the FHA One-time Close Construction Loan.