FHA Loan for New Construction
The FHA Loan for New Construction is one of FHA's specialized options. Here is the plain-English rundown for 2026.
How it works
For newly built homes, FHA requires specific documentation (builder warranties, certificates, and inspections) and may need an early-stage inspection depending on when construction was completed.
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 Loan for New Construction first.
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Frequently Asked Questions
- What is the FHA Loan for New Construction?
- For newly built homes, FHA requires specific documentation (builder warranties, certificates, and inspections) and may need an early-stage inspection depending on when construction was completed.
- What credit score and down payment are required?
- Like other FHA loans, 580+ qualifies for 3.5% down; 500-579 requires 10% down.