[Julio Munoz]

These are mortgages called the FHA One-Time Close (OTC) New Construction Loans, which simplify financing a new home build. They combine the financing for land purchase, construction costs, and the permanent mortgage into one loan, requiring a single closing. This eliminates the need for multiple loans and closings, saving borrowers time and money.

This is how FHA OTC New Construction Loans work:

Loan Basics

Purpose:

• Used to finance land purchase, construction of a home, and permanent mortgage under one loan.

Borrower Type:

• It is perfectly suitable for those who meet FHA requirements, including first-time home buyers.

Single Closing:

• Instead of having separate loans for both construction and permanent mortgages that traditional construction loans would require, these are closed before construction commences, hence making it simpler than them.

How It Works

Application and Approval:

• Applicants apply for their loans through normal FHA loan underwriting procedures.
• Approval means verifying your credit score, income level, and debt-to-income (DTI) ratios and confirming your down payment ability.

Land Purchase:

• If the borrower does not own any land, their loan can include funds to buy it.
• If the person borrowing owns the land, they can use its worth as security towards their down payment.

Construction Phase:

• An escrow account is funded by the lender for construction payments.
• Builders are compensated in installments as construction progresses gradually.
• Examinations will determine if the project meets requirements before funds are released.

Interest During Construction:

• Usually, borrowers pay interest only on amounts disbursed during the construction period.
• Some lenders let you wait until construction is complete to start paying.

Completion and Conversion:

• After construction and when inspections pass, a permanent FHA mortgage automatically becomes a loan.
• Borrowers begin making regular principal and interest payments.

Key Features

Low Down Payment:

• If a borrower’s credit score is within range (580 or above), they can qualify with just 3.5% of FHA requirements being met as a down payment amount.
• The down payment could come from savings, gifts, or approved assistance programs.

Credit Requirements:

• 580 minimum credit score for 3.5% down and 500-579 with 10% down payment on an FHA loan

Loan Limits:

• FHA loan limits vary depending on where one lives concerning median home prices within that area or county

Loan Term:

• Upon completing the building process, these usually form a thirty-year fixed-rate mortgage.

Builder Requirements:

• FHA-approved builders must have the required licensing and insurance.

Inspection and Appraisal:

• Before approving the loan, FHA will check if the property meets FHA’s minimum requirements.

Benefits

Saves Time:

• Having only one closing for multiple closings helps to reduce costs.

Streamlined Process:

• Combines land, construction, and permanent financing in one package.

Lower Down Payment:

• Low down payment requirements of the FHA make this option more accessible to many borrowers.

Fixed Interest Rates:

• This protects them from market shocks.

Challenges

Builder Approval:

• The FHA limits the number of builders who can get approval, thereby reducing the options available for buyers.

Complex Documentation:

• Before proceeding with this loan program, borrowers must furnish detailed information regarding their construction plans, contracts, and estimates of expenditures.

Higher Fees:

• Costs during closing may increase slightly because they have been combined into a single loan package.

Eligibility Requirements

Income and DTI:

• Maximum DTI ratio of 43% (except where compensating factors apply).

Primary Residence:

• The home must be your primary residence and cannot be an investment or a second home (i.e., you must live there full-time).

Property Type:

• Only single-family dwellings and 1-4 unit residences are eligible—condominiums do not qualify for OTC financing under HECM guidelines.

Steps to Get an FHA OTC Loan

Choose an FHA-Approved Lender:

• Ensure your lender offers OTC loans and other options like regular mortgages, Jumbo mortgages, etc.…

Select an FHA-Approved Builder:

• Ensure you work with a builder who knows what it means to build houses under these guidelines.

Application Submission:

• Make all the required copies, including income documents, credit reports, and building plans.

Loan Closing:

• Once approved, funds are put on escrow while construction starts.

Building Follow-up:

• You must follow up with your lender and builder to ensure that everything is done as planned or within the set deadlines.

Moving In:

• After it is completed, your loan becomes a permanent mortgage.

FHA One-Time Close (OTC) loans offer an alternative for borrowers who want to construct their homes. But don’t want to go through the process of applying and closing one loan for the construction phase to apply and close another loan for permanent financing. The critical thing here is working with established lenders and builders who are well conversant with FHA’s procedures.

[Julio Munoz]

Can you provide specific examples of proposed deregulation in each area?

[Julio Munoz]

What specific deregulation measures are most concerning regarding inflation?

[Julio Munoz]

Any talks with inflation, housing market forecast. mortgage rates, and the economy with the new Trump adminstration?

[Julio Munoz]

Give more details on the severe weather warnings issued.

[Julio Munoz]

What is the current status of the investigation into the Wisconsin school shooting?

[Julio Munoz]

What are some common risks associated with correspondent lending?

[Julio Munoz]

The line of argument that healthy individuals can die suddenly after they get the coronavirus vaccine and call it ‘murderous’ is a contentious and oft-debated conspiracy. Here’s what the science says and the context in which it is presented.

The Scientific Perspective and the Authorities

Over time, the COVID-19 vaccine has been proven safe and effective through scientific research and studies conducted by CDC and WHO. These organizations carry a lot of weight in terms of reputation and credibility, so they are reliable sources of information. For example, studies in England discovered no appreciable rise in cardiac or all-cause death rates in young people within the three months after immunization.

Yes, VAERS reports deaths after a person has been vaccinated against the COVID-19 virus. Still, the fact that someone has died is not a reason to conclude that the vaccine caused it. The CDC has reviewed the reports, and as of the last information available, no such causal relationship has been established between the vaccines and the deaths, encouragingly stating correlation is not causation.

Another study in Oregon considers the possibility that a few young persons die from heart causes shortly after receiving the vaccine and does not find much support from the data from previously healthy people for that proposition.

Misinformation and its Misinterpretation:

Social media and other online articles have claimed that healthy individuals die suddenly after getting vaccinated. These claims are not buttressed by factual data but are based on wrong interpretations or hearsay. For instance, instances of cessation of life in a close temporal context to a shot are posted without presenting daily death statistics or predisposing illnesses that may happen following vaccination.

These claims have been otherwise verified as false. Institutions like Reuters and NPR have demystified the vaccination claim that it triggers high rates of unexplained deaths, indicating that many such accounts circulate on the internet, even if there are no reasonable elements or relevant context to support them.

Public Sentiment and the Social Media Sphere:

In X (previously Twitter), there are accounts accusing vaccines of unexplained deaths and insisting on correlating them after examining postmortem evidence or even personal accounts. However, posts mostly rely on personal cases or do not publish results that have undergone peer reviews and, therefore, should be handled carefully. The allegations in each case do not suffice for establishing a cause-and-effect link in medicine; only peer-reviewed thorough studies can do that.

While there have been a few cases where individuals died shortly after being administered the COVID-19 vaccine, comprehensive studies have not established a link that considers the vaccine as the root cause for these deaths. The vaccines are highly regulated, and the advantages of preventing serious infection, hospitalization, and possible death from COVID-19 are far greater than the chances of extremely rare side effects.

The claim that vaccines are a cause of healthy young people’s sudden deaths is, for the most part, a result of baseless allegations, misreporting of the relevant facts, and the human inclination to relate events that occur close to each other in time while ignoring the statistics as a whole. When evaluating the safety of a vaccine, the most appropriate aid is information provided by a profound investigation of the issue rather than a boastful media, for any scientific article was checked by experts and a health organization that authorized the use of these substances in the first place.

[Julio Munoz]

Yes. please. I would like to delve very deeper into every aspects of these issues in comprehensive great detail.