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Florida FHA Construction Loan

How does the FHA construction One-Time Close program work in Florida?

The FHA One-Time Close construction loan, also known as Construction-to-Permanent (C2P) mortgage, allows borrowers a short-term interim or temporary construction period and a long-term permanent mortgage. It is required for a borrower using the FHA One-Time close program to qualify for a long-term mortgage in order to utilize the construction-to-permanent program. Once the construction is completed, homeowner’s closed loan will be modified into a permanent fixed-rate loan.

General Product Description

Construction-to-Permanent structure:

  • If the borrower purchases the land in the transaction, the C2P loan will be structured as a Construction-to-Permanent loan transaction with a purchase price.
  • If the borrower owns the land at the moment of application, the C2P loan will be structured as a Construction-to-Permanent loan transaction as a refinance.
  • The Construction-to-Permanent loan is required to conform to all FHA and Fannie Mae construction guidelines.

Florida Construction loan in progress

Construction loans are offered by FHA to qualified borrowers anywhere in Florida. They are the one-time close instead of the customary two-time close on conventional loans. Being a 203b loan all guidelines still apply, given the usually unknown fact that qualifying for an FHA 203b loan means that you are eligible for an FHA construction loan. TheFloridaMortgagePros is one of the few Florida mortgage lenders offering an FHA one-time close mortgage for construction loans. As part of the requirements, borrowers must qualify based on income, credit, and asset requirement. The lowest down payment requirement is still 3.5% of the sale price. Borrowers are not expected to make payments until the construction has been completed.

The Process:

  • Every borrower requires to apply and qualify for an FHA loan with the lender.
  • A builder must be found by the borrower, which has to be approved by TheFloridaMortgagePros; All required documents have to be submitted by the builder following FHA guidelines.
  • Borrower and builder have to agree on a final sales price.
  • The loan will be treated as a regular FHA 203b loan.
  • Borrower close on the mortgage loan; construction shall commence after which.
  • Construction of the home must be completed in no more than 5 months.
  • A final inspection must be done by the borrower who also has to sign the certificate of occupancy, then makes first payment 60 days from the date.


  • All FHA 203b guidelines apply, no overlays.
  • There is no payment needed during construction time.
  • Borrower’s land or lot can be used to build the home.
  • The loan is available in the entire continental US territory.
  • Borrowers are not expected to make payments until the construction has been completed, once the inspection and certificate of occupancy have been signed by the borrower.


The FHA construction loan is a standard FHA 203b loan. Hence, the general FHA guidelines will apply. Each requirement is the same as the traditional way to purchase a home as if the buyers are attempting to purchase an existing home. The FHA 203b one-time construction loan is one of our niche products. Additional information or detail is available by contacting our Florida FHA Home Loan Consultants at (855) 501-5927.