Yes — FHA can finance new construction in certain structures, including purchases of newly built homes and construction-to-permanent loans when your lender offers them. Historically as little as 3.5% down may qualify, but MIP, builder approvals, and FHA property standards all matter before you break ground.
FHA construction-to-permanent loans wrap lot acquisition (when included), hard costs, and soft costs into one FHA-insured mortgage that converts to permanent financing at completion. Funds release in draws as the builder hits milestones — you do not receive the full construction budget at closing.
Not every FHA lender offers construction-to-perm. Ryan and Steve confirm investor availability early so you are not under contract with a builder your chosen lender cannot finance. Mortgage insurance premium (MIP) applies upfront and monthly on most FHA files, including construction.
If construction-to-perm is unavailable, buying a completed new build with a standard FHA purchase loan may be the cleaner path — we compare both before you commit to plans.
The right FHA structure depends on whether the home is already built or still on the drawing board.
FHA construction files need more documentation than a simple resale purchase.
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Compare FHA construction with other program options for your build.
VA construction-to-permanent options for eligible veterans and service members.
Conventional one-close and two-close construction products compared.
How construction financing works from plans to permanent mortgage.
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Confirm lender availability, builder fit, and your minimum investment before you order plans. Ryan & Steve map FHA construction-to-perm options against buying a completed new build — averaging a 20-day close on straightforward files.