FHA Construction-to-Permanent Loan
The FHA Construction-to-Permanent Loan is one of FHA's specialized options. Here is the plain-English rundown for 2026.
How it works
The FHA construction-to-permanent loan finances the build and converts to a permanent mortgage at completion with a single closing, avoiding two sets of closing costs.
Key things to know
- Minimum 3.5% down with a 580+ credit score (10% down for 500-579).
- Loan amounts are capped by your county FHA limit — $541,287 floor up to $1,249,125 in high-cost areas.
- FHA mortgage insurance applies; budget the 1.75% upfront premium plus annual MIP.
- The home must be your primary residence and meet FHA's minimum property standards.
Program rules are set by HUD and updated periodically. Join the free notification program to hear about changes to the FHA Construction-to-Permanent Loan first.
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Frequently Asked Questions
- What is the FHA Construction-to-Permanent Loan?
- The FHA construction-to-permanent loan finances the build and converts to a permanent mortgage at completion with a single closing, avoiding two sets of closing costs.
- What credit score and down payment are required?
- Like other FHA loans, 580+ qualifies for 3.5% down; 500-579 requires 10% down.