USDA Construction Loan Requirements 2024 Full Guide!

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Жыл бұрын

The USDA Construction Loan allows for eligible individuals to finance a home build with ZERO down payment! In this video, home buyers will learn how to apply for the USDA construction to permanent loan, what the requirements are how the building process works!
🏠 USDA Construction Loan Lenders: www.rd.usda.gov/sites/default...
🏠 USDA Eligible Areas: eligibility.sc.egov.usda.gov/...
🏠 USDA Income Limits in Your Area: www.rd.usda.gov/files/RD-GRHL...
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Hi, I’m Nicole Nark, a full-time Realtor® at HomeWay Realty in Little Rock. I came to Little Rock with the love of my life, I am a proud Mom of two furbabies (Mini Schnauzer Mix and German Shepard), a Graduate of Communications from the University of Arkansas-Fayetteville and Honor Graduate of Arkansas Real Estate School in Little Rock.
I believe that home ownership lays the foundation for a life of financial security and freedom.
From building equity in a home, to the tax benefits it provides, buying a home is the most important financial decision most people make during their life. For this reason it is important to work with a professional who is committed to act as an advocate for you and your best interests.
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narkhomes.com/little-rock-rea...
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Disclaimer: The topics discussed, and ideas presented are Nicole Nark's opinions and presented for entertainment purposes only. Nicole Nark is a licensed Realtor with HomeWay Realty, but she is not advising or representing you in these videos. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

Пікірлер: 171

@JosephMbidi 11 ай бұрын

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

@NicoleNark 11 ай бұрын

That is awesome!

@jinnyrichards1357 10 ай бұрын

So you actually used usda and found a contractor?

@clpnetwork522 Ай бұрын

Nice!!!!👍🏾

@clpnetwork522 Ай бұрын

Beautiful! Was it hard finding a USDA contractor?

@malachibergman902 21 күн бұрын

This is a joke. Credit score goes up to 850 😂

@juliacassidy 11 ай бұрын

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!

@NicoleNark 11 ай бұрын

So happy to hear that you found it helpful! 🥰

@1nesymphony Жыл бұрын

Thank you for always sharing valuable information on your platform, greatly appreciated

@elizabethchapman1980 4 ай бұрын

Thank you so much! I’d been searching for someone to break this down. Really appreciate you taking the time ❤

@NicoleNark 4 ай бұрын

Glad it was helpful!

@p2pportal Жыл бұрын

Guys, the reality is, like most things, your success will be directly correlated to YOUR efforts, YOUR drive and tenacity, YOUR resolve to not take NO for AN ANSWER, and ur ability to pursue workarounds when roadblocks occur. But all of what u are hearing here IS TRUE IS POSSIBLE, but understand there will be frustration. But any hiccups just make the end game that much more satisfying once u cross that finish line, oops I mean “threshold”, into your new crib!

@authorauthority7193 Жыл бұрын

Magical thinking, most small businesses fail and its not because they are unmotivated. Its just a festure of capitalism.

@ToOpen6seven Ай бұрын

FACTS! I had a USDA loan like this one!

@davep2945 Жыл бұрын

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.

@lizbethdiehl318 Жыл бұрын

Which online lender are you using?

@travistint1277 Жыл бұрын

which online lender did you find

@ashabrewer9960 Жыл бұрын

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!

@MyFullFiguredLife Жыл бұрын

Thanx for this.

@NicoleNark Жыл бұрын

Thank you for watching!

@authorauthority7193 Жыл бұрын

I love your channel, thank you for making these videos.

@NicoleNark Жыл бұрын

Thank you for being here! I appreciate you and it makes my day knowing that my videos are helpful! 😊

@islandbound8437 5 ай бұрын

Thank you for this. This is so helpful. This information is pretty tough to come by in general

@NicoleNark 5 ай бұрын

Glad it was helpful!

@lla77 Жыл бұрын

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

@burlyfishmonger Жыл бұрын

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.

@tomekialloyd8221 Жыл бұрын

Thank you so much! Good stuff.

@mariagomes9882 Жыл бұрын

Excellent information! I am buying a lot right now and these are valuable info for me. Thank you

@NicoleNark Жыл бұрын

Glad it was helpful!

@gr82bloved43 7 ай бұрын

perfectly made video ... thank you!

@NicoleNark 7 ай бұрын

You're welcome! Glad it was helpful ☺️

@khalidqatash2525 Жыл бұрын

Great information. Thanks for the hard work.

@NicoleNark Жыл бұрын

Thanks for watching!

@joeypalacios7152 10 ай бұрын

Thank you for the info!!

@ketinathompson4680 Жыл бұрын

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

@NicoleNark Жыл бұрын

Glad it was helpful!

@diegob5608 Жыл бұрын

You are amazing 👏Thank you

@NevaJWilson25462 Жыл бұрын

When I'm figuring on the calculator can I use the gross up for SSDI.

@fabiennegoydadin9046 Жыл бұрын

Very informative! Just subscribed! Thanks :)

@NicoleNark Жыл бұрын

Thanks for the sub!

@yencymartinez4138 Жыл бұрын

Great information! Thank you

@NicoleNark Жыл бұрын

You bet!

@arcatacompany Жыл бұрын

Barndiminium" love it,never heard that name but I know exactly what your saying and just saw a nice place that was a barndiminium

@the4evrQueen Жыл бұрын

OMG you already made it! TY

@NicoleNark Жыл бұрын

Absolutely!!

@joettssouder3841 Жыл бұрын

Please please tell me how to do this

@GermanShepherdForever Жыл бұрын

Good information Nicole.

@NicoleNark Жыл бұрын

Glad it was helpful!

@justaninja1 Жыл бұрын

Does USDA do multi family if you live in one of the units?

@peterb.houtman1012 Жыл бұрын

Would like to hear about the VA CTP loan process. Thanks for the great info

@daniellemcmillan2108 Жыл бұрын

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.

@kertonniapetty-miliken4834 Жыл бұрын

I think is an interesting program and yes if you would break then down a little more please.

@lyndsipratthorsemanship Жыл бұрын

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.

@shannonkelly5138 9 ай бұрын

yaya

@Dabeast2004 Жыл бұрын

What if you already own property that is paid off? Will this loan route work?

@DeannaMaurice Жыл бұрын

Yahhhh thank you 😊

@lgsupport440 Жыл бұрын

Nice video Mrs

@rms-vp6hf 11 ай бұрын

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.

@iyabomarvel8506 Жыл бұрын

@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

@NicoleNark Жыл бұрын

Woohoo! So happy to hear that the video brought you some value and helped you get started! ☺️

@deniseflores6894 Жыл бұрын

And is it a better choice for 1st time buyer

@kbinco Жыл бұрын

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...

@tiffanygurney1780 Жыл бұрын

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!??

@1nesymphony Жыл бұрын

Thanks!

@NicoleNark Жыл бұрын

Thank you for supporting my channel! 💕

@adriangutierrez1441 Жыл бұрын

Hi Can you brake down the FHA 203K loan ty.

@EC-um2kh Жыл бұрын

how long do you have to live in home , In case you need to sell?

@Skateboardshopusa 10 ай бұрын

Would this also apply for a remodel. A home that needs repairs at purchase

@powerassata 7 ай бұрын

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?

@deniseflores6894 Жыл бұрын

Hi which is better to get a usda construction loan or update loan to buy a house

@jaxg8rchick167 Жыл бұрын

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

@ericka11051 2 ай бұрын

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

@IneffableK Жыл бұрын

What if we already have land? What if it's not legally ours? Like, we will live on property near family??

@louisflores9643 Жыл бұрын

We have a 5 acre property in SE, NM. I want to build a small warehouse to store all the things my sister wants to keep. Then I want to have a standing home demolished & put down a foundation for a Modular Built home 3 bdrm, 2 ba + 2 car AG, 1700 sf., I think I can get one made for $250K or less. Do you know which Modular builders deliver in NM. I think there is a showroom in Carlsbad, NM.

@amandamedina2296 5 ай бұрын

Can you use a USDA Construction Loan and convert it to a VA loan at the end of completion of the home?

@july4thmoonstar Жыл бұрын

Is this the same as the FHA one time loan?

@jessicapowell4584 Жыл бұрын

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?

@JosephMbidi 11 ай бұрын

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.

@1027jmorris Жыл бұрын

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?

@NicoleNark Жыл бұрын

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!

@latonyalee7821 4 ай бұрын

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.

@CristianM4252 Жыл бұрын

I have not found a lender that offers 0 down . The lowest I’ve found was 15-20% down.

@bdunk3403 Жыл бұрын

I just bought land, can the land be put into the usda loan? otherwise I would be over the 41%

@tonyavirges1155 2 ай бұрын

where in indiana do they do the construction loan?

@PoetandProfessor Жыл бұрын

Is skoda construction an approved builder/contractor?

@debrock42 Жыл бұрын

Great info...thnx for sharing. What about Charlotte, NC...can you advise?

@p2pportal Жыл бұрын

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

@user-iv2vy7ri6i 5 ай бұрын

I need to build a handicap accesible home it is nearly immposible to find one already built

@Hemidakota Жыл бұрын

What about buying land and building a new home?

@Steve-zr1tt Жыл бұрын

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…

@amandamedina2296 9 ай бұрын

Ok you are awesome!!! Arkansas person here!! And I’m learning so much!! Where in Arkansas?

@NicoleNark 9 ай бұрын

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!

@Saminthefloof Жыл бұрын

I have a huge question and I'm praying that you can help answer it! What if I was gifted a piece of raw land on (from) my family's property of 1 acre and we already know that it's zoned already for residential and permitted already to build on. I also meet the requirements for a USDA. How would I go about getting an address for this acre for the lending? Would I just use my family's address since the acre is part of their property?

@AbdullahTech Жыл бұрын

I don't think you mentioned modular homes

@joannhargrove8838 Жыл бұрын

Do is construction builder and USDA Rural Development in Franklin County, NC (list construction built)?

@clintforest44 Жыл бұрын

Try reading your comment out loud. I've read it 10 times and can't figure out what you're talking about... It's kind of rude.

@chillbillch Жыл бұрын

Does this include the price of the land?

@nickformato6838 Жыл бұрын

Hi Nicole. Thank you so much for this video. Can I get approved for a USDA construction loan with a pre-fab home?

@latonyalee7821 4 ай бұрын

You can for a modular and manufactured (mobile) home. Does Pre-fab fall into one of these categories? If so, yes.

@samanthagray4859 Жыл бұрын

Do you ever have time to meet one on one? Thank you so much!

@qtlylikewoh2774 3 күн бұрын

What about any grants for low income families

@TheNyn8tiv3 Ай бұрын

Can you build a multi with this loan?

@Homesteadhappyhour Жыл бұрын

Has anyone successfully completed one of these?

@gripboy5042 Жыл бұрын

Do the income limit counts overtime or just base pay?

@VictoriaLussier-eg2ig Жыл бұрын

it is on your tax returns

@applejack2911 Жыл бұрын

What credit score would you need? Would a 626 score be ok, with 2 years on time rental payments?

@anabhousen7159 Жыл бұрын

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

@ananunez5478 Жыл бұрын

You should apply anyways

@errndog Жыл бұрын

Wondering if I could use this for a barndominium?

@NicoleNark Жыл бұрын

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!

@kingtt6275 9 ай бұрын

Does this loan applies to a Modular built home to ? I know there’s two types of homes that can be built

@CMIC 6 ай бұрын

Yes

@tonyavirges1155 2 ай бұрын

Hey Ni old Indiana area lended. Fort wayne ind2j

@Boujieboss Жыл бұрын

I want this loan .

@tessabaty7909 2 ай бұрын

would this include or exclude the land to build on as well or would you need a separate loan for the land?

@ToOpen6seven Ай бұрын

In NC yes as long as the total is not over the loan amount 3!

@BruceMcKeever 9 ай бұрын

Does this loan allow up to a four unit complex like the FHA does?

@NicoleNark 9 ай бұрын

Nope, only single family.

@tclodfelter8789 10 ай бұрын

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!!??

@questpropertiesllc4952 Жыл бұрын

HI NICOLE,SO DOES A USDA DIRECT APPLICANT NOT QUALIFY FOR USDA CONSTRUCTION LOAN ? THANKS

@graftedinthruYahusha 7 ай бұрын

Curious as well

@SportBikePC Жыл бұрын

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!

@cnigeldgriff6283 Жыл бұрын

Hello I’m in NJ. Can you provide the builder info?

@milkdiamond1490 Жыл бұрын

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 Жыл бұрын

how is your application going?

@SportBikePC Жыл бұрын

@@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..

@jovanturner3670 Жыл бұрын

@@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

@user-iv2vy7ri6i 5 ай бұрын

Have you ever seen a construction to perm loan. Others say it just dont happen

@NicoleNark 5 ай бұрын

Construction to perm loans I have seen many times. The USDA construction loan specifically I have not seen anyone use.

@DL-1 Жыл бұрын

Can this be used to build a fourplex?

@nomdeguerre8464 Жыл бұрын

@DL-1 Жыл бұрын

@@nomdeguerre8464 how do you know?

@nomdeguerre8464 Жыл бұрын

@@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?

@MrChappey711 Жыл бұрын

can i use USDA for a manufactured home?

@CMIC 6 ай бұрын

Yes

@vkriese56 Жыл бұрын

What if you’ve had a bankruptcy in the last year… Will that not qualify for USDA loan?

@NicoleNark Жыл бұрын

It needs to be at least 2 years after your bankruptcy was dismissed before you can qualify.

@1975gucci Жыл бұрын

How long does it take to qualify for a usda loan after bankruptcy?

@KallMeKarma89 Жыл бұрын

3 years after bankruptcy discharge

@malyism1 Жыл бұрын

Is the income limits gross or after taxes?

@zea3647 Жыл бұрын

Gross

@ndayembidi6781 Жыл бұрын

Yes

@coryindigorue869 Жыл бұрын

Hylands, FL micro farm

@kikitootsie 7 ай бұрын

How does a contractor become a USDA approved contractor? I know you listed the requirements but where is the actual website to apply?

@latonyalee7821 4 ай бұрын

You can google USDA approved contractors and find one in the area where you want to build. That's what I did. Good Luck!

@IrisEstrada-lc7gr Жыл бұрын

We are interested in this loan but my husband makes 100k and I make 70k, would he be able to get approved by himself? If so how much would he be able to get approved for? Most bids right now are 500k plus, how would that work to get approved?

@NicoleNark Жыл бұрын

Keep in mind even if he is the sole applicant that USDA looks at household income. All household members income would be taken into consideration even if they are not on the loan.

@DAY2DAYY Жыл бұрын

Ask your job to put your 1/2 of income in a 401k. Until approved. Or ask for a salary reduction until approved.

@CeciliaDodds Жыл бұрын

WE WANT TO IMMIGRATE TO THE USA BUT WE WANT TO LIVE IN OUR CONTAINERS, HOW DO I DO THAT

@benbohannon 7 ай бұрын

AKA the chicken and the egg loan program.

@david88va Жыл бұрын

I thought that you had to own the land already, not that the program includes the purchase of the actual land itself

@NicoleNark Жыл бұрын

Nope!

@hlgrmdr9556 Жыл бұрын

this sounds impossible

@Tearial311 9 ай бұрын

I think working with a USDA contractor would be expensive

@johnwilliams3237 Жыл бұрын

This loan doesn’t cover land you have to already own the land

@shannonwiles4094 Жыл бұрын

Sounds like more trouble than it’s worth

@Bladerunner55217 Жыл бұрын

Remember USDA Reimburses you. You have to have the capital. I just got off the phone with them. Took 3 weeks to get a hold of them via phone

@luperamos7307 Жыл бұрын

Reimburses you for what?

@Bladerunner55217 Жыл бұрын

@@luperamos7307 reimburse you because your the one that has to finances everything. Meaning the government isn’t just giving out money for anybody to get land and build! Meaning all these videos on it is completely wrong. I’m in California and what I’m saying is very true in California. Now maybe in idaho somewhere next to a bear cave your application might get approved but you still have to finance it.

@luperamos7307 Жыл бұрын

@@Bladerunner55217 I'm in California also and completely priced out at this point. Where are you building and how much do you have to put down if you don't mind me asking?

@Bladerunner55217 Жыл бұрын

@@luperamos7307 I listened to this video that says zero down and many other videos on many other platforms so I tried to apply with zero down. So like I said the USDA rep said the program is a reimbursement program. You have to come up with all the money. So if I wanted to put an amount down to make it happen I’d have to do a standard loan which USDA offers but this rural construction loan is not gonna work for me.

@DAY2DAYY Жыл бұрын

@@Bladerunner55217 so do you finance the build and the land . Then the government sends a check once completed

@relaxingchannel2763 Жыл бұрын

Bad trouble will come 8 It will be very bad for you people who buy many houses for yourselves. You also buy land to join to the land that you already have. Then there is no more land left for anyone else. You are the only people who remain on the land. 9 I have heard the Lord Almighty promise this: ‘All these great, beautiful houses will certainly become empty. There will be nobody to live in them. 10 Large vineyards will give only a few bottles of wine. If you plant ten bags of seed, you will only get one bag of grain as your harvest.’

@unionizetechtempe379 Жыл бұрын

Username does NOT check out