Can You Build a Home with an FHA Loan?

February 23, 2026

Tags: building a new house

---

Yes, you can build a new home in Wichita with an FHA loan. The tool that makes it possible is an FHA construction-to-permanent loan, sometimes called an FHA One-Time Close. It wraps your construction financing and your permanent mortgage into a single FHA-backed loan, so you close once and convert to a regular mortgage when the home is finished.

This guide explains how an FHA build loan works, the general requirements, and how Sharp Homes fits into the process. Loan limits, credit minimums, and rates change over time, so treat the numbers here as a starting point and confirm the current figures with an FHA-approved lender before you plan around them.

Can You Really Use an FHA Loan to Build a House?

You can. Most buyers assume FHA loans are only for buying an existing home, but the FHA construction-to-permanent program is designed specifically for new construction. Instead of taking a separate construction loan and then refinancing into a mortgage, you get one loan that funds the build in stages and then becomes your long-term mortgage automatically.

The appeal for many Wichita new home buyers is the low down payment and more flexible qualifying that FHA is known for, applied to a home built for them rather than one bought off the market.

How an FHA Construction-to-Permanent Loan Works

The single loan moves through two phases. During construction, the lender releases funds to the builder in draws tied to progress, the same milestone approach Sharp Homes uses (a deposit, then draws at foundation, framing, drywall, and finishes). When the home passes final inspection, the loan converts to your permanent FHA mortgage with no second closing and no second set of closing costs.

• One application, one approval, one closing
• Funds released to the builder in progress-based draws
• Converts to a standard FHA mortgage at completion
• You typically make interest-only payments on drawn funds during the build
• Avoids the risk of re-qualifying for a separate mortgage after construction

General FHA Build Requirements

FHA sets the framework, and individual lenders add their own overlays, so requirements vary. In general terms, expect the program to look at the following. Confirm the specifics with your lender for your situation.

• A low minimum down payment (FHA is known for down payments as low as 3.5% for qualifying borrowers)
• A credit score that meets FHA and the lender’s minimums
• An FHA loan amount within the limit for Sedgwick County (county limits change annually)
• A licensed, approved builder and a property that meets FHA appraisal and construction standards
• Standard FHA mortgage insurance

These figures change annually. Verify current limits and minimums with an FHA-approved lender before finalizing your budget.

How Sharp Homes Helps With an FHA Build

Sharp Homes has built new homes financed with government-backed loans, and we are not tied to any single lender, so you are free to work with the FHA lender that fits you best.

Because Sharp does not mark up material costs and communicates cost throughout the build, the numbers your lender sees stay honest from contract to closing. Our documented, licensed process (Sedgwick County License #10653) is built to meet the inspection and draw requirements an FHA construction loan involves. See how Sharp builds and what it costs to build.

Steps to Build in Wichita With an FHA Loan

The path is straightforward when you line up the builder and the lender early.

1. Talk with Sharp Homes about your plan, lot, and budget (no deposit for design conversations).
2. Get pre-approved with an FHA-approved lender who offers construction-to-permanent loans.
3. Finalize your plan, selections, and a fixed build contract.
4. Close once on the FHA construction-to-permanent loan.
5. We build in five documented stages while the lender funds progress draws.
6. At final inspection, your loan converts to its permanent FHA mortgage and you move in.

Frequently Asked Questions