Thank you Ms. Nark! You provide such important and detailed information. Plus, you've helped me get closer to my dream of building my home. After 3 years of intense looking, I've found a property that is exactly what I wanted. I will live on my 5-acre property in my beautiful custom-built house by next year, if not sooner. Now I'm just hoping for a miracle because I would love for one of those companies that print 3D houses to reach out to me. Thank you for doing what you do!
I love this program. I do have this program. My mortgage monthly $450. as I have a nice credit score 895. I have 4 bedrooms single family houses. Thanks god
We are in the same boat. We found that the interest rate on a construction to permanent was at 7.5% (VA doesn't offer a construction loan they just take over the loan after the construction is completed). Hope this helps a little.
This was the perfect video at the perfect moment! I am considering the USDA construction loan however I might go with FHA. I am in the process of buying undeveloped property on a 15 ye fixed, debating if I will switch to an ARM before closing as I expect to build within 5 years. I have to wait, though, while I rebuild my savings. The 20% down and closing costs are going to empty out what I have now, but I think it will be worth it. Thank you for this video, as it makes me feel like I can still make this happen.
Love your work. Can you please do a updated video on Fha requirements with the down payment assistance programs that are offered and those requirements. Ive heard that there is Chenoa and the new 10 % down program what could they cover in cost
@NicoleNark Thankyou for your videos. Downloaded your list of lenders and found one in my state and town!! Called yesterday and already starting the application process. Thankyou so much for all that you do
How do we go about applying for the construction loan? Do we have to buy the property first? Or can we buy the land with a construction loan and roll it into a mortgage? Also any tips for help with closing costs and blueprints?
@@NicoleNark I’m not sure how long the buyer was at it before hiring my husband as the builder but he built the house in 4 months. The only issue was that they only pay builders 60% of the draws and a lot of builders probably wouldn’t want to do that . He practically built the house out of pocket.
Woohoo! This loan can be used SO many places in Arkansas. As a general rule of thumb, most cities with less than 30,000 people will qualify. Please reach out to me via my contact form with any additional questions, I’d love to help!
The USDA program is great in theory but in practice extremely difficult to use. I live in a good area for construction with dozens and dozens of builders and banks as well as mortgage specific institutions. NONE of the lenders in the area work with the USDA loan. I had to go to an online lender. Then, as she stated, finding a builder who was willing to work within USDA guidelines was difficult. And then, of course, that builder took on more work than they could do because they were tying to squeeze every dollar they could out of the freak market that was 2020 into middle 2022. So, they more than tripled their original estimate between our first consultation and their final bid. Well, that ended things real quick. So, more than a year later I'm starting the process again. Lenders and builders had it good for several years and got used to a run of success they foolishly thought would last forever. Builders are more receptive to working with the USDA program than they were a year ago when they couldn't keep track of all the requests to build but they are still way overpriced. And I am back to the same online mortgage company because no one in my area seems to have gotten the message that the good times are winding down and it might be a good idea to expand your lending options.
You say the loan amount is based on the appraised value of the plans you submit. What about site prep costs, such as clearing and grading a home site, or installing a new driveway? I know those can be extremely expensive, especially if they are long. The website seems to imply that whatever is left over can be used for these purposes, and I worry that a significant expense such as a driveway or a well and septic system is too costly to simply hope there's enough "left over". Is there some way to include these expenses in your plans, perhaps?
Couple years since this video posted. Are USDA construction loans any friendlier with Bardominium builds? They seem to have grown in popularity. Considering building one for myself.
Just found a lender for this in NJ .. already submitted our app. Our builder we chose has been around for decades, so hoping he won’t have an issue taking on our job if approved…. We already own our land outright, but the house cost is pretty high .. thanks for the video I feel even more confident now!
Same here @Sport Bike Powder Coating. I am also in NJ and looking at this. If you wouldn't mind, kindly share the lender and builder you used. Thank you!
@@jovanturner3670 I didn’t go through with it, as the lender kept trying to get me to do a different loan with no explanation so we stopped it and walked on that option..
@@SportBikePC sorry to hear that, do you know what lender you were working with? I am NJ licensed and have an investor that will process and underwrite USDA Loans
Great information about these USDA Construction loans. By chance would you happen to have a link that directs one to what all is covered with this loan type ? In the area I am wanting to build or buy a Modular home there will need to have septic installed, Water ( wells drilled ) covered with this loan etc. Please let me know and your viewers as well. Thank you
Is it true we could only use the USDA program only once? Or will I be able to use USDA for the rural land I want then when I'm ready to build on it say in a couple of years or so, will I be able to use the construction loan?
It isn’t a loan. It is a “guarantee” from the government they will pay if you don’t. The Federal Government is basically co-signing for you on the riskiest form of RE lending. You still have to find an actual lender who have the by-laws etc to do it. It isn’t a slam dunk sadly. Know the program, any CFRs involved and the proposed lender’s criteria for FHA/VA/USDA so when they say “no, because…” you can counter with why it has to be “Yes”. If you meet the criteria and they say no it’s discriminatory. That’s why the criteria are so specific.
Great question! From my understanding USDA prefers stick built homes to those with a metal shell. Depending on how you plan on constructing the home, it might work!
Hi Nicole, thank you for this information. Got a question for you or anyone who knows. We have our eye on a rural property which has utilities and an unfinished cabin - it is livable, but would need interior finished and also the well repaired. Do you think this could qualify for the USDA construction loan, or is that for new builds only. It is sounding like it would not qualify for the other USDA loans since the house is unfinished. Thank you.
I would like to make an arrangement with the seller in a letter of intent to purchase, to allow me some time to secure financing. I'm not interested in getting lower price necessarily. The negotiations are about time, and for this uncommon place, time is money. I have to find a USDA approved Builder, I have to get some stuff before I know if USDA will guarantee the loan or if a bank will finance it. I want 30 days to work this uncommon situation out, without the fear of a cash buyer coming in while I'm working on it. And I want to do this with a Letter of intent to purchase. With a “no shop” clause to prevent the seller from finding another buy in the middle of the process.Only because a LOI is non-binding traditionally.
Hi, Nicole! Thank you for all the great information in this and all your videos. I'm really excited to get one of these USDA Construction loans. I've looked around town and haven't found any lenders that will do the loan. Can you help me find a lender?
Anyone watching use this construction loan? I have scanned allover the area and the only thing available in the rural areas are empty lots or lots with trailer. I am interested in this loan for the purpose of construction being I would not buy a lot with a trailer on it… I imagine this will be very hard to find a contractor with this loan…
Have you done a video on where to even being with all this? I have no clue do you call contractors do you call realtors do you call lending companies or the government to utilize the process I have no clue where to start . Please help I'm in Florida
Love your videos Nicole. I currently live in South Dakota but looking for a possible move to Fayetteville. I recently received a newcomers guide to that area. I am by myself looking for a one bedroom apartment, do you work with people looking for apartments? Thank you in advance...
Hi @nicolenark! Thanks so much for making this video. I am concerned about student loans debt. If I applied with another person but used my income, would it work for us?
Great question! When you apply with another person, the income, debts and credit scores of both individuals will be considered. There’s no way to use the income of one person but the credit score of the other for example. If you want more of a breakdown, check out my recent Debt To Income ratio video! It will help you learn how lenders will view your finances!
If you are paying your student loan, the lender uses your payment amount. If you are in deferment or forbearance and not paying, they use 1% of your total balance as the monthly payment. Example, if you owe $40,000 in student loans, the lender factors a payment of $400.00 in your debt-to-loan ratio. However, if you are paying a fixed amount of $125.00, they would use $125.00 in your debt-to-loan ratio. It's best to get your payment as low as possible for at least a year before you apply. Two years is even better. I'm speaking from my experience with my credit union only.
Good video! Quick question, I have 7 acres and want to build on only 1 acre yo later do a business on the other is that possible and be eligible to do still get this loan, the land is eligible for usda
I doubt it. I applied years ago with a 650 score and got rejected. I'm now applying again with a 770 score and I'm still having issues getting approved. Good luck
Start with the eligibility map to fine an area around Charlotte. Link is included in video notes. Best on desktop but mobile is ok too. Drag map around look for areas that are highlighted(orangeish color?) those areas are eligible. Then look up “usda approved contractors for construction loans.” Look specifically for the state you are looking to build in. UNITED HOME BUILDERS is a big one I know of
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
This video has been more helpful than all the articles I’ve read and all the lenders/realtors I’ve asked about this loan combined!
So happy to hear that you found it helpful! 🥰
same! this video is gold.
Thanks!
Thank you for supporting my channel! 💕
Thank you for this. This is so helpful. This information is pretty tough to come by in general
Glad it was helpful!
Thank you so much! I’d been searching for someone to break this down. Really appreciate you taking the time ❤
Glad it was helpful!
Thank you Ms. Nark! You provide such important and detailed information. Plus, you've helped me get closer to my dream of building my home. After 3 years of intense looking, I've found a property that is exactly what I wanted. I will live on my 5-acre property in my beautiful custom-built house by next year, if not sooner. Now I'm just hoping for a miracle because I would love for one of those companies that print 3D houses to reach out to me. Thank you for doing what you do!
I love this program. I do have this program. My mortgage monthly $450. as I have a nice credit score 895. I have 4 bedrooms single family houses. Thanks god
That is awesome!
So you actually used usda and found a contractor?
Nice!!!!👍🏾
Beautiful! Was it hard finding a USDA contractor?
This is a joke. Credit score goes up to 850 😂
Thanx for this.
Thank you for watching!
Would like to hear about the VA CTP loan process. Thanks for the great info
We are in the same boat. We found that the interest rate on a construction to permanent was at 7.5% (VA doesn't offer a construction loan they just take over the loan after the construction is completed). Hope this helps a little.
Your are amazing! So informative and easy to follow! Thank u for taking the time to do this video
I love your channel, thank you for making these videos.
Thank you for being here! I appreciate you and it makes my day knowing that my videos are helpful! 😊
This was the perfect video at the perfect moment! I am considering the USDA construction loan however I might go with FHA. I am in the process of buying undeveloped property on a 15 ye fixed, debating if I will switch to an ARM before closing as I expect to build within 5 years. I have to wait, though, while I rebuild my savings. The 20% down and closing costs are going to empty out what I have now, but I think it will be worth it. Thank you for this video, as it makes me feel like I can still make this happen.
Thank you, Nicole! This is exactly what I was looking for this information. I live in the area where United Home Built is a home builder company
Glad it was helpful!
Excellent information! I am buying a lot right now and these are valuable info for me. Thank you
Glad it was helpful!
Love your work. Can you please do a updated video on Fha requirements with the down payment assistance programs that are offered and those requirements. Ive heard that there is Chenoa and the new 10 % down program what could they cover in cost
Thank you for always sharing valuable information on your platform, greatly appreciated
perfectly made video ... thank you!
You're welcome! Glad it was helpful ☺️
how long do you have to live in home , In case you need to sell?
And is it a better choice for 1st time buyer
Good information, thanks for the comprehensive video!
OMG you already made it! TY
Absolutely!!
Please please tell me how to do this
@NicoleNark Thankyou for your videos. Downloaded your list of lenders and found one in my state and town!! Called yesterday and already starting the application process. Thankyou so much for all that you do
Woohoo! So happy to hear that the video brought you some value and helped you get started! ☺️
Super valuable info. I needed this.
When I'm figuring on the calculator can I use the gross up for SSDI.
How do we go about applying for the construction loan? Do we have to buy the property first? Or can we buy the land with a construction loan and roll it into a mortgage? Also any tips for help with closing costs and blueprints?
No. They have to find the area for you as mine have this program NC. My mortgage monthly $500 as I have a nice credit score 867. I have 4 bedrooms.
We have built for USDA in north central Florida
How long would you say the process took?
@@NicoleNark I’m not sure how long the buyer was at it before hiring my husband as the builder but he built the house in 4 months. The only issue was that they only pay builders 60% of the draws and a lot of builders probably wouldn’t want to do that . He practically built the house out of pocket.
@tinawalker5335 but he eventually got the remaining 40%? How long after the project being done did he have to wait for the last draws?
I would love to connect with you. We are looking to build using USDA in Jackson County fl and I'm looking to put together the team now.
Great information. Thanks for the hard work.
Thanks for watching!
Really love the USDA program
Good information Nicole.
Glad it was helpful!
What if you own your land already please explain the situation with that
I have not found a lender that offers 0 down . The lowest I’ve found was 15-20% down.
Ok you are awesome!!! Arkansas person here!! And I’m learning so much!! Where in Arkansas?
Woohoo! This loan can be used SO many places in Arkansas. As a general rule of thumb, most cities with less than 30,000 people will qualify. Please reach out to me via my contact form with any additional questions, I’d love to help!
How many buildings can you construct on the land with this option?
The USDA program is great in theory but in practice extremely difficult to use. I live in a good area for construction with dozens and dozens of builders and banks as well as mortgage specific institutions. NONE of the lenders in the area work with the USDA loan. I had to go to an online lender. Then, as she stated, finding a builder who was willing to work within USDA guidelines was difficult. And then, of course, that builder took on more work than they could do because they were tying to squeeze every dollar they could out of the freak market that was 2020 into middle 2022. So, they more than tripled their original estimate between our first consultation and their final bid. Well, that ended things real quick. So, more than a year later I'm starting the process again. Lenders and builders had it good for several years and got used to a run of success they foolishly thought would last forever. Builders are more receptive to working with the USDA program than they were a year ago when they couldn't keep track of all the requests to build but they are still way overpriced. And I am back to the same online mortgage company because no one in my area seems to have gotten the message that the good times are winding down and it might be a good idea to expand your lending options.
Which online lender are you using?
which online lender did you find
What is the name of your online lender?
We had one it was surpringly easy to close and hubby was a bartender so....tipped wages still they were easier than our current fha
I think is an interesting program and yes if you would break then down a little more please.
Does USDA do multi family if you live in one of the units?
i’m curious about this also, looking to build a duplex. did you find anything?
You say the loan amount is based on the appraised value of the plans you submit. What about site prep costs, such as clearing and grading a home site, or installing a new driveway? I know those can be extremely expensive, especially if they are long. The website seems to imply that whatever is left over can be used for these purposes, and I worry that a significant expense such as a driveway or a well and septic system is too costly to simply hope there's enough "left over". Is there some way to include these expenses in your plans, perhaps?
Couple years since this video posted. Are USDA construction loans any friendlier with Bardominium builds? They seem to have grown in popularity. Considering building one for myself.
What if you already own property that is paid off? Will this loan route work?
Just found a lender for this in NJ .. already submitted our app.
Our builder we chose has been around for decades, so hoping he won’t have an issue taking on our job if approved….
We already own our land outright, but the house cost is pretty high .. thanks for the video I feel even more confident now!
Hello I’m in NJ. Can you provide the builder info?
Same here @Sport Bike Powder Coating. I am also in NJ and looking at this. If you wouldn't mind, kindly share the lender and builder you used.
Thank you!
how is your application going?
@@jovanturner3670 I didn’t go through with it, as the lender kept trying to get me to do a different loan with no explanation so we stopped it and walked on that option..
@@SportBikePC sorry to hear that, do you know what lender you were working with? I am NJ licensed and have an investor that will process and underwrite USDA Loans
Who will give construction loans for apartments?
Great information about these USDA Construction loans. By chance would you happen to have a link that directs one to what all is covered with this loan type ? In the area I am wanting to build or buy a Modular home there will need to have septic installed, Water ( wells drilled ) covered with this loan etc.
Please let me know and your viewers as well.
Thank you
Is it true we could only use the USDA program only once? Or will I be able to use USDA for the rural land I want then when I'm ready to build on it say in a couple of years or so, will I be able to use the construction loan?
I need to build a handicap accesible home it is nearly immposible to find one already built
It isn’t a loan. It is a “guarantee” from the government they will pay if you don’t. The Federal Government is basically co-signing for you on the riskiest form of RE lending. You still have to find an actual lender who have the by-laws etc to do it. It isn’t a slam dunk sadly. Know the program, any CFRs involved and the proposed lender’s criteria for FHA/VA/USDA so when they say “no, because…” you can counter with why it has to be “Yes”. If you meet the criteria and they say no it’s discriminatory. That’s why the criteria are so specific.
Can this be done in Texas?
Very informative! Just subscribed! Thanks :)
Thanks for the sub!
Wondering if I could use this for a barndominium?
Great question! From my understanding USDA prefers stick built homes to those with a metal shell. Depending on how you plan on constructing the home, it might work!
Hi Nicole, thank you for this information. Got a question for you or anyone who knows. We have our eye on a rural property which has utilities and an unfinished cabin - it is livable, but would need interior finished and also the well repaired. Do you think this could qualify for the USDA construction loan, or is that for new builds only. It is sounding like it would not qualify for the other USDA loans since the house is unfinished. Thank you.
yaya
What about buying land and building a new home?
thank you
I would like to make an arrangement with the seller in a letter of intent to purchase, to allow me some time to secure financing. I'm not interested in getting lower price necessarily. The negotiations are about time, and for this uncommon place, time is money.
I have to find a USDA approved Builder, I have to get some stuff before I know if USDA will guarantee the loan or if a bank will finance it. I want 30 days to work this uncommon situation out, without the fear of a cash buyer coming in while I'm working on it. And I want to do this with a Letter of intent to purchase.
With a “no shop” clause to prevent the seller from finding another buy in the middle of the process.Only because a LOI is non-binding traditionally.
Where’s the time bar ?
Thank you so much! Good stuff.
Can you build a multi with this loan?
Hi, Nicole! Thank you for all the great information in this and all your videos. I'm really excited to get one of these USDA Construction loans. I've looked around town and haven't found any lenders that will do the loan. Can you help me find a lender?
You are amazing 👏Thank you
Can you do one for 2025?
What would be the APR for usada loan?
Can you recommend any lenders in Florida I have been looking for over a month and have had 0 luck… it’s been such a headache
can this program be used on heir property?
What if you have money left over after your home us built, do you return it to the bsnk or is it yours to keep and pay back?
Great information! Thank you
You bet!
Can you use a USDA Construction Loan and convert it to a VA loan at the end of completion of the home?
Hi
Can you brake down the FHA 203K loan ty.
What about any grants for low income families
I just bought land, can the land be put into the usda loan? otherwise I would be over the 41%
Anyone watching use this construction loan?
I have scanned allover the area and the only thing available in the rural areas are empty lots or lots with trailer. I am interested in this loan for the purpose of construction being I would not buy a lot with a trailer on it…
I imagine this will be very hard to find a contractor with this loan…
Hi which is better to get a usda construction loan or update loan to buy a house
Hi Nicole. Thank you so much for this video. Can I get approved for a USDA construction loan with a pre-fab home?
You can for a modular and manufactured (mobile) home. Does Pre-fab fall into one of these categories? If so, yes.
Do is construction builder and USDA Rural Development in Franklin County, NC (list construction built)?
Have you done a video on where to even being with all this? I have no clue do you call contractors do you call realtors do you call lending companies or the government to utilize the process I have no clue where to start . Please help I'm in Florida
So if you're D/I ratio is BELOW 41%... BUT your income is over their max for "moderate" income...you CAN'T USE the USDA home build loan!!??
Have you ever seen a construction to perm loan. Others say it just dont happen
Construction to perm loans I have seen many times. The USDA construction loan specifically I have not seen anyone use.
What if we already have land? What if it's not legally ours? Like, we will live on property near family??
Can this loan be used to build a fourplex(one unit would be for me)?
Love your videos Nicole. I currently live in South Dakota but looking for a possible move to Fayetteville. I recently received a newcomers guide to that area. I am by myself looking for a one bedroom apartment, do you work with people looking for apartments? Thank you in advance...
Hi @nicolenark! Thanks so much for making this video. I am concerned about student loans debt. If I applied with another person but used my income, would it work for us?
Great question! When you apply with another person, the income, debts and credit scores of both individuals will be considered. There’s no way to use the income of one person but the credit score of the other for example. If you want more of a breakdown, check out my recent Debt To Income ratio video! It will help you learn how lenders will view your finances!
If you are paying your student loan, the lender uses your payment amount. If you are in deferment or forbearance and not paying, they use 1% of your total balance as the monthly payment. Example, if you owe $40,000 in student loans, the lender factors a payment of $400.00 in your debt-to-loan ratio. However, if you are paying a fixed amount of $125.00, they would use $125.00 in your debt-to-loan ratio. It's best to get your payment as low as possible for at least a year before you apply. Two years is even better. I'm speaking from my experience with my credit union only.
Is there a MAP of some type for my state to qualify for rural areas ?
In the description.
Good video! Quick question, I have 7 acres and want to build on only 1 acre yo later do a business on the other is that possible and be eligible to do still get this loan, the land is eligible for usda
What credit score would you need? Would a 626 score be ok, with 2 years on time rental payments?
I doubt it. I applied years ago with a 650 score and got rejected. I'm now applying again with a 770 score and I'm still having issues getting approved. Good luck
You should apply anyways
Why do they require a high credit rating which defeats those who need a construction loan.
Nice video Mrs
can i use USDA for a manufactured home?
Yes
Does this loan allow up to a four unit complex like the FHA does?
Nope, only single family.
Great info...thnx for sharing. What about Charlotte, NC...can you advise?
Start with the eligibility map to fine an area around Charlotte. Link is included in video notes. Best on desktop but mobile is ok too. Drag map around look for areas that are highlighted(orangeish color?) those areas are eligible. Then look up “usda approved contractors for construction loans.” Look specifically for the state you are looking to build in. UNITED HOME BUILDERS is a big one I know of
I don't think you mentioned modular homes
Is this the same as the FHA one time loan?
Is skoda construction an approved builder/contractor?
Hey sis! Love your content! I'm an agent in Illinois. Trying to find a lender that does this loan in my state. Thanks!
Has anyone successfully completed one of these?
I want this loan .
Does this loan applies to a Modular built home to ? I know there’s two types of homes that can be built
Yes
Barndiminium" love it,never heard that name but I know exactly what your saying and just saw a nice place that was a barndiminium
would this include or exclude the land to build on as well or would you need a separate loan for the land?
In NC yes as long as the total is not over the loan amount 3!
Does this include the price of the land?
Do you ever have time to meet one on one? Thank you so much!
HI NICOLE,SO DOES A USDA DIRECT APPLICANT NOT QUALIFY FOR USDA CONSTRUCTION LOAN ? THANKS
Curious as well
Can this be used to build a fourplex?
NO
@@nomdeguerre8464 how do you know?
@@DL-1 I've researched it. You clearly haven't. Feel free to call your local USDA office.
Does a 4plex even make sense for the spirit of this program?
Nicole, I looked at the lender link and do not see my State in there. I live in Maine do you know if there are any lenders in my area!??
How does a contractor become a USDA approved contractor? I know you listed the requirements but where is the actual website to apply?
You can google USDA approved contractors and find one in the area where you want to build. That's what I did. Good Luck!