How to Build a Home With an FHA Loan in Wichita (2026 Guide)
Yes, you can build a new home in Wichita with an FHA construction-to-permanent loan. See how an FHA One-Time Close works and how Sharp Homes helps you build.
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.
Key Takeaway
An FHA construction-to-permanent loan lets you build new with one loan and one closing that converts to your mortgage when the home is done. FHA is known for low down payments, but confirm current limits and credit minimums with an FHA-approved lender.
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 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, and drywall, with the balance at closing). 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
Ready to Build With an FHA Loan in Wichita?
Bring your questions and your budget. Call 316-775-2129 or contact Sharp Homes and we will walk you through building with an FHA loan, connect the dots with your lender, and price your build honestly.
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. Unlike most builders, Sharp can also carry the construction loan directly when that is the better option for your situation.
Because Sharp 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.
Why buyers build with Sharp
- Sedgwick County License #10653
- Has built government-financed homes
- Not tied to one lender
- Cost communicated throughout the build
Steps to Build in Wichita With an FHA Loan
The path is straightforward when you line up the builder and the lender early.
- Talk with Sharp Homes about your plan, lot, and budget (no deposit for design conversations).
- Get pre-approved with an FHA-approved lender who offers construction-to-permanent loans.
- Finalize your plan, selections, and a fixed build contract.
- Close once on the FHA construction-to-permanent loan.
- We build in five documented stages while the lender funds progress draws.
- At final inspection, your loan converts to its permanent FHA mortgage and you move in.
Frequently Asked Questions
Can you build a new home with an FHA loan?
Yes. An FHA construction-to-permanent loan (FHA One-Time Close) lets you finance building a new home and roll it into a single FHA mortgage that converts when the home is complete.
How much is the down payment on an FHA construction loan?
FHA is known for low down payments, commonly as little as 3.5% for qualifying borrowers, but your exact figure depends on your credit and your lender. Confirm current requirements with an FHA-approved lender.
Does Sharp Homes work with FHA loans?
Yes. Sharp Homes has built government-financed homes and is not tied to a single lender, so you can use the FHA lender that fits you. Sharp can also carry the construction loan directly when that works better for you.
Is there a loan limit for building with FHA in Wichita?
Yes. FHA sets a loan limit for Sedgwick County that changes each year. Ask your lender for the current Sedgwick County FHA limit before finalizing your plan and budget.
Do I close twice with an FHA construction loan?
No. The One-Time Close structure means you close once. The loan funds construction in draws and then converts to your permanent FHA mortgage without a second closing.
Craig Sharp is President & CEO of Sharp Homes, the third-generation owner of a family builder that has completed more than 1,000 homes across the Wichita area over 60+ years. Craig is personally involved in design and has 40+ years of construction experience.
