203k FHA construction loans - and use cases

[Daniel Netzer]

Has anyone used a "203k FHA construction loan"? I am curious to know how it works and what the rate is relative to the typical FHA-conforming loans.

[Anthony Freeman]

Quote from @Daniel Netzer:

Quote from @Anthony Freeman:

Quote from @Daniel Netzer:

Quote from @Anthony Freeman:

Quote from @Daniel Netzer:

Has anyone used a "203k FHA construction loan"? I am curious to know how it works and what the rate is relative to the typical FHA-conforming loans.

I believe the biggest difference is in the paperwork. The 3.5% is calculated from the entire construction loan which will rise a typical down payment and your closing cost. I am considering this loan myself.

at what rate? 

7.0%

Got it so the same as a conventional loan. How long is the term of the loan? 1-3 years? 

 30 years