Question 1

Is a conventional loan only for people with perfect credit in Union County?

Accepted Answer

No — that's the most expensive myth in mortgages. Conventional loans start at a 620 credit score, and automated underwriting weighs your whole file: income stability, assets, equity, reserves. Plenty of Union County buyers with mid-600s scores close conventional every month. Stronger credit improves pricing, but 'perfect' was never the requirement.

Question 2

What is a conventional loan in Union County?

Accepted Answer

A mortgage that isn't government-insured — no FHA, VA, or USDA backing — typically sold to Fannie Mae or Freddie Mac under their guidelines. Down payments start at 3–5%, mortgage insurance is cancellable, and there are no income caps or geography rules. It's the most widely used financing in Union County, for existing homes and new construction alike.

Question 3

What is automated underwriting (DU and LPA) in Union County on a conventional construction loan?

Accepted Answer

Desktop Underwriter (Fannie Mae) and Loan Product Advisor (Freddie Mac) are the engines that analyze your full file — credit, income, assets, the property — and issue a recommendation in minutes. An Approve/Eligible finding often unlocks flexibility no rulebook chart shows, including DTI room. Every Union County file we build is run through them strategically, not just submitted blindly.

Question 4

Who is a Conventional loan the strongest fit for in Union County?

Accepted Answer

Buyers with a 680+ score and roughly 10% or more to put down — especially anyone building a second home, wanting removable mortgage insurance, or sitting above USDA income limits. If that sounds like you, Conventional deserves a first look. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 5

What is HomeReady and could it help me build in Union County on a conventional construction loan?

Accepted Answer

HomeReady is Fannie Mae's affordable conventional program: 3% down, reduced mortgage insurance, flexible funding sources like gifts and grants, and even boarder income counting toward qualification. It's for borrowers earning up to 80% of the area median income. Freddie's Home Possible is the sibling program. For qualifying Union County buyers, it can pair with new-construction purchases too.

Question 6

Should I choose a fixed rate or an ARM for my build in Union County on a conventional construction loan?

Accepted Answer

Fixed-rate loans keep the payment identical for the full term — maximum certainty, and required for the 97% LTV option. ARMs start with a fixed period (5, 7, or 10 years) then adjust with the market. On construction loans, fixed is the Union County default because you're already managing build-phase variables; but the right answer depends on how long you'll keep the home. We model both.

Question 7

What is the conforming loan limit in Union County on a conventional construction loan?

Accepted Answer

For 2026, the one-unit conforming limit in Union County is $832,750, with higher limits for 2–4 unit properties. That's the ceiling for a standard conventional loan — including a construction-to-permanent loan — before jumbo pricing applies. It resets each year, so the number moves.

Question 8

Does the conventional loan use my middle credit score in Union County?

Accepted Answer

The representative score drives the decision — and it matters twice on construction: 680 gets you approved, 700 or higher waives requalification at completion. If you're sitting at 690, a few months of targeted credit work before closing can simplify your entire build. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 9

I own several properties already — can I still build conventionally in Union County on a conventional construction loan?

Accepted Answer

Yes — conventional financing allows up to ten financed properties for investors, with reserve requirements that step up as the portfolio grows. Second-home and investment construction both work. This is where conventional runs laps around government programs, which are owner-occupied-only. Union County portfolio builders live in conventional territory.

Question 10

How long after bankruptcy or foreclosure can I get a conventional loan in Union County?

Accepted Answer

General waiting periods: four years after a Chapter 7 discharge, two years after a Chapter 13 discharge, seven years after a foreclosure, and four after a deed-in-lieu or short sale — with shorter windows possible under documented extenuating circumstances. The clock has usually run longer than people assume. Bring us the dates and we'll tell you exactly where you stand for a Union County build.

Question 11

Can rental or ADU income help me qualify in Union County on a conventional construction loan?

Accepted Answer

Yes — on a 2–4 unit build, projected rent from the other units counts as qualifying income per the appraiser's rent schedule. Accessory dwelling unit rent can be considered too under the right program. Build a duplex near Lake Butler, and the tenant's rent is helping you qualify before a single brick is laid in Union County.

Question 12

Can self-employed borrowers get conventional construction loans in Union County?

Accepted Answer

Yes — self-employment is a documentation path, not a penalty. Generally two years of business history (sometimes one, with the right profile), tax returns, and stable or rising income. Depreciation and other paper write-offs often get added back, so qualifying income can exceed what your bottom line suggests. Union County contractors and business owners build with conventional loans routinely.

Question 13

Do I need cash reserves for a conventional construction loan in Union County?

Accepted Answer

Sometimes. Automated underwriting sets reserve requirements case by case — many primary-residence approvals need none, while manual underwriting, multi-unit builds, and investment properties can require two to six months of payments in the bank. Retirement accounts often count. We tell you the exact number for your Union County scenario before you commit.

Question 14

Are there income limits on conventional loans in Union County?

Accepted Answer

Standard conventional loans have no income limits at all — earn whatever you earn. Only the affordable programs (HomeReady/Home Possible) cap income, at 80% of area median, in exchange for their perks. So high earners aren't excluded and moderate earners get a discount lane. Union County buyers fit somewhere on that spectrum, and we place you deliberately.

Question 15

Is manual underwriting available on the construction program in Union County on a conventional construction loan?

Accepted Answer

No — the file must have an automated approval through Fannie Mae's Desktop Underwriter. That makes the pre-qualification run we do upfront genuinely meaningful: the same engine that decides is the one we test. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 16

Can I use construction-to-permanent financing for a condo in Union County on a conventional construction loan?

Accepted Answer

No — attached condo units and co-ops are specifically excluded from construction-to-permanent financing under Fannie Mae guidelines. Detached homes, townhome-style attached units in PUDs, and 1–4 unit properties are the lane. If your Union County plans involve a condo project, different financing structures apply and we'll walk you through them.

Question 17

Can I build a rental property with a conventional construction loan in Union County?

Accepted Answer

Yes — investment-property construction works with 15% down on a one-unit build (25% on 2–4 unit investment). Projected market rent can support qualification, and building new often beats buying tired inventory on maintenance and insurability in Union County. It's the investor lane no government program offers.

Question 18

Can I build a second home with a conventional construction loan in Union County?

Accepted Answer

Yes — second-home construction is fully supported, with as little as 10% down. This is territory government programs can't enter: FHA, VA, and USDA are owner-occupied-primary only. A vacation build near the water in Union County runs on conventional financing, full stop.

Question 19

Can I build anywhere in Union County with a conventional loan?

Accepted Answer

Yes — conventional financing has no geographic eligibility maps. City lot in Lake Butler, suburban parcel near Lake Butler, or acreage past Raiford — all fair game, provided zoning allows residential use and the appraiser can find comparable sales. That freedom is a core conventional advantage over USDA's rural-only rules.

Question 20

Is there an acreage limit for conventional loans in Union County?

Accepted Answer

No fixed cap — conventional guidelines care about the property being residential in character, not a working farm, with value supported by comparable sales. Large Union County parcels finance regularly; the appraiser just needs similar acreage sales to lean on. We assess the comp landscape before you contract on big land.

Question 21

Can I build on land subdivided from a family parcel in Union County on a conventional construction loan?

Accepted Answer

Yes — once the split is legally recorded and your parcel has its own legal description, tax ID, and access, it's buildable land like any other. Gift-of-equity treatment can apply if family sells it to you under market value. The subdivision process runs through Union County planning, and we'll tell you exactly what recorded documents underwriting needs.

Question 22

Can I include a garage or detached shop in my conventional build in Union County?

Accepted Answer

Yes — attached garages, detached garages, and shop buildings can be in the construction budget as long as they're on the plans, permitted, and reflected in the appraisal. The appraiser needs Union County comps that support the value of larger outbuildings, so we review that before plans finalize.

Question 23

Can a builder use this program for a spec home in Union County on a conventional construction loan?

Accepted Answer

No — spec building isn't allowed. The program finances owner-occupied primary residences and second homes for the person who will own them. Builders benefit differently: a committed buyer, verified draws, and no construction-lending risk on their own books. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 24

Why do builders in Union County like conventional One-Time Close buyers?

Accepted Answer

The buyer is fully underwritten and closed before ground breaks, draws fund reliably as work completes, and the builder isn't carrying a construction line on their own credit. For builders around Lake Butler and Lake Butler, that's a lower-risk, faster-certainty sale.

Question 25

How soon after completion can I move in in Union County on a conventional construction loan?

Accepted Answer

As soon as the certificate of occupancy is issued — that's the legal green light. The loan conversion paperwork runs in parallel and doesn't hold up your move. Most Union County families are unpacking within days of the CO. On a primary-residence loan you're expected to occupy within 60 days, which is never the issue on a home you just built.

Question 26

How do construction draws work in Union County on a conventional construction loan?

Accepted Answer

Your builder completes a stage — foundation, framing, dry-in — and requests a draw. An inspector verifies the work is actually done, then funds are released for that stage. It repeats through completion. The draw schedule is agreed before closing, so everyone on your Union County build knows exactly when money moves.

Question 27

Can I build a manufactured home with a conventional construction loan in Union County?

Accepted Answer

Yes. A new manufactured home that has never been attached to a foundation can be financed with a conventional construction-to-permanent loan, covering the home purchase, foundation, and site work. Fannie Mae's MH Advantage program even allows up to 97% financing on qualifying homes. Underwriting must run through the automated systems, and we handle that on Union County placements.

Question 28

Does my builder have to be approved for a conventional construction loan in Union County?

Accepted Answer

Yes — your builder must be licensed, insured, and registered with our construction partner before funds can flow. It's a straightforward package: license, insurance certificates, references, and financials. Most established Union County builders complete it quickly, and we handle the coordination.

Question 29

Do conforming loan limits apply to construction loans in Union County on a conventional construction loan?

Accepted Answer

Yes — a conventional construction-to-permanent loan follows the same conforming limit as any conventional mortgage. In Union County the 2026 one-unit limit is $832,750, and multi-unit builds get higher limits. Total project cost above the limit moves you into jumbo construction territory, which we also handle.

Question 30

When does my first full mortgage payment start in Union County on a conventional construction loan?

Accepted Answer

After the home is complete and the loan converts to permanent financing. During the build you're typically paying interest only on drawn funds; once your Union County home gets its certificate of occupancy and the conversion happens, regular principal-and-interest payments begin — usually the first of the month after conversion.

Question 31

Can well, septic, and driveway costs be financed in the conventional loan in Union County?

Accepted Answer

Yes — site preparation is an eligible use of construction funds, and that includes the well, septic system, driveway, utility runs, clearing, and grading. Rural Union County parcels outside Lake Butler often need all of it, and it all rides inside the one loan with the rest of your budget.

Question 32

What's the difference between modular and manufactured for conventional loans in Union County?

Accepted Answer

Modular homes are built in sections, assembled on-site, and meet the same local building codes as stick-built houses — conventional lending treats them exactly like site-built homes. Manufactured homes are built to the federal HUD code on a permanent chassis and follow their own guideline set with a few extra rules. Both can be financed in Union County; the paperwork path just differs.

Question 33

What if the contract price changes before closing in Union County on a conventional construction loan?

Accepted Answer

Notify us immediately — the construction department recalculates the file so your closing figures stay accurate. Price changes before closing are manageable; surprises at the closing table are not. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 34

Can I build a duplex or multi-unit with a conventional construction loan in Union County?

Accepted Answer

Yes — conventional construction-to-permanent financing covers 1–4 unit properties. A duplex you'll live in can be built with as little as 15% down under standard eligibility, and living in one unit while renting the others is a proven Union County wealth-building play. Investment-only multi-unit builds work too, with larger down payments.

Question 35

Do I have to requalify after the home is built in Union County on a conventional construction loan?

Accepted Answer

No — that's the defining promise of a single-close. You qualified once, before construction; conversion at completion is administrative, not a re-underwrite. Fannie Mae even provides document-age flexibility for construction timelines. A job change or market shift mid-build doesn't reopen your approval on a Union County One-Time Close.

Question 36

Can the builder cover closing costs on a conventional build in Union County?

Accepted Answer

Yes — builder contributions are treated as interested-party contributions, capped by your down payment tier: 3% of value with less than 10% down, 6% with 10–25% down, 9% above 25%. Investment builds cap at 2%. Builder-paid closing costs are a common negotiating point on Union County contracts, and we make sure yours stays inside the limits.

Question 37

What happens when construction is finished in Union County on a conventional construction loan?

Accepted Answer

Three steps: final inspection confirms the home matches the appraised plans, the certificate of occupancy is issued, and the loan converts to permanent financing — automatically or via a simple modification agreement. Then you move in and regular payments begin. No second closing, no requalifying, no drama in Union County.

Question 38

I already own my lot in Union County — does that help my down payment on a conventional construction loan?

Accepted Answer

Yes, significantly. The equity in your land counts toward your down payment on a conventional construction loan. And if you've owned the lot for 12 months or more before closing, Fannie Mae lets the loan be based on the as-completed appraised value rather than your cost — which often means little to no cash needed at closing on a Union County build.

Question 39

Are building permits required before draws in Union County on a conventional construction loan?

Accepted Answer

Yes — building permits must be submitted before any construction funds are drawn. Your builder handles permitting with the local authority in Union County; the draw process simply verifies it happened.

Question 40

Can I make change orders once construction starts in Union County on a conventional construction loan?

Accepted Answer

Yes, but with discipline. Change orders must be documented, priced, and approved — and if they raise the cost, the increase generally comes from contingency or your pocket, since the loan amount was set at closing. Small Union County changes are routine; a mid-build redesign is not. Decide the big things before you close.

Question 41

Can my rate improve if the market drops during construction in Union County on a conventional construction loan?

Accepted Answer

Possibly — within 30 days of the modification being signed, a float-down option can apply if the market has improved. The construction department runs the numbers to confirm it's viable. Locked protection on the way up, a window of opportunity on the way down. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 42

Can my closing costs be financed in Union County on a conventional construction loan?

Accepted Answer

If you own your lot, yes — closing costs can be financed through lot equity as long as the loan stays within 90% of value. Land you've held becomes working capital for the deal. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 43

How does the construction term affect my cash to close in Union County on a conventional construction loan?

Accepted Answer

Directly — the term drives the interest and soft-cost figures built into the transaction, so a 12-month selection costs more upfront than a 6-month one. We size the term to your builder's actual schedule, not a guess. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 44

Are points and temporary buydowns allowed on conventional loans in Union County?

Accepted Answer

Yes — discount points can permanently reduce your rate, and temporary buydowns (like 2-1 structures) can lower early payments, often funded by the builder as an incentive. On purchase-structured construction loans these are available within the interested-party contribution caps. We run the break-even math for your Union County scenario so incentives are real, not cosmetic.

Question 45

How do property taxes and insurance work during construction in Union County on a conventional construction loan?

Accepted Answer

During the build you'll typically carry a builder's-risk insurance policy (often through the builder) and pay taxes on the land value only. At conversion, standard homeowner's insurance takes over and the escrow account begins collecting for Union County taxes and premiums with your regular payment. We line up the insurance handoff so there's never a coverage gap.

Question 46

Who pays for the appraisal and draw inspections in Union County on a conventional construction loan?

Accepted Answer

The borrower, as with any loan — the plan-review appraisal runs somewhat above a standard appraisal, and each draw inspection carries a modest fee, all disclosed up front on your estimate. Some builders absorb inspection costs in the contract. No surprises: every Union County fee is on paper before you commit.

Question 47

Can gift funds cover my down payment on a conventional loan in Union County?

Accepted Answer

Yes — gifts from family members can cover the entire down payment and closing costs on a primary residence, with a simple gift letter and paper trail. Combine a cash gift with gifted or discounted family land and a Union County build can launch with remarkably little of your own savings.

Question 48

How long does approval take for a conventional construction loan in Union County?

Accepted Answer

Pre-approval: usually a day or two. Full approval through closing: commonly 30–45 days once your builder's package and plans are complete, since the appraisal reviews the full plan set. The critical path is almost always builder paperwork, not your file — which is why we start the Union County builder registration on day one.

Question 49

What does the extension fee cost if my build runs long in Union County on a conventional construction loan?

Accepted Answer

A monthly fee applies past the completion date, and the locked rate is forfeited to current market. The real cost of running long is the rate, not the fee — which is why the construction term you pick at closing deserves serious thought. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 50

Can I switch lenders mid-process and keep my appraisal in Union County on a conventional construction loan?

Accepted Answer

No — appraisal transfers aren't accepted on this program; the as-completed appraisal is ordered fresh with the finalized contract and plans. If you're unhappy where you are, the restart is smaller than it feels. We'll show you the real timeline. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 51

What is the final inspection and completion certification in Union County on a conventional construction loan?

Accepted Answer

After the certificate of occupancy, the appraiser (or an approved inspector) issues a completion report confirming the home was built to the plans the value was based on. That report is the trigger for conversion to permanent financing. It's the last checkpoint of your Union County build — and the moment the project officially becomes your home loan.

Question 52

What are lien waivers and why do they matter on my build in Union County on a conventional construction loan?

Accepted Answer

Every draw, your builder signs a waiver confirming subcontractors and suppliers are paid for that stage — so nobody can later slap a lien on your Union County home for a bill the builder skipped. Florida's construction lien law makes this protection essential. The draw process collects waivers automatically; it's the paperwork that guards your title.

Question 53

What is the project calculation and why does it come first in Union County on a conventional construction loan?

Accepted Answer

It's the structured math of your entire deal — contract price, land, soft costs, interest, and term — run before underwriting so your loan amount and cash-to-close are right the first time. Deals structured correctly upfront don't blow up at the closing table. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 54

What happens between clear-to-close and closing day in Union County on a conventional construction loan?

Accepted Answer

Underwriting clears the credit file, the construction department gives final project approval, and closing figures are prepared from the verified construction numbers. At closing you bring down payment, escrows, and closing costs — lot equity can offset both. In Union County — including around Lake Butler and Raiford — the same guideline applies.

Question 55

Can my conventional loan terms change between closing and completion in Union County?

Accepted Answer

Only in the narrow ways the guidelines allow — under Freddie Mac's One-Time Close, a single modification can adjust the balance for documented cost increases or convert an ARM to fixed, and terms may be modified only once. Otherwise, what you signed is what you keep. Nothing changes without your signature on a Union County file.

Question 56

What documents do I need to apply for a conventional construction loan in Union County?

Accepted Answer

Your side: pay stubs, W-2s or two years of tax returns if self-employed, bank statements, and ID. The project side: builder contract, plans and specs, cost breakdown, and land documentation (deed or purchase contract). We split the list cleanly between you and your Union County builder so nobody duplicates effort.

Question 57

Conventional vs FHA construction loan in Union County — which fits me?

Accepted Answer

FHA takes 3.5% down with flexible credit but carries mortgage insurance that typically lasts the life of the loan. Conventional starts at 3–5% down, allows second homes and investment builds, and its PMI cancels as equity grows. Stronger credit and any land equity usually tip the math conventional in Union County. We price both side by side and let the numbers decide.

Question 58

New conventional construction loan vs HomeStyle Renovation in Union County — which do I need?

Accepted Answer

Ground-up on vacant land is construction-to-permanent territory. Buying or owning an existing Union County home that needs transformation — additions, gut remodel, hurricane hardening — is HomeStyle Renovation, one loan covering purchase-plus-rehab on the after-improved value. Tear-down-and-rebuild scenarios can go either way; we structure whichever fits the project.

Question 59

What happens if my project cost exceeds the conforming limit in Union County on a conventional construction loan?

Accepted Answer

Above $832,750 (the 2026 one-unit limit in Union County), the loan becomes jumbo construction — still very financeable, with larger down payments and full-documentation underwriting. Sometimes trimming the budget under the limit or applying more land equity keeps you conforming. We model both structures so you choose with the full picture.

Question 60

Conventional vs USDA construction loan in Union County — how do I choose?

Accepted Answer

USDA One-Time Close offers $0 down but requires an eligible rural address and household income under the county limit. Conventional works at any Union County address with no income cap, allows second homes and investments, and its PMI cancels. Rural site plus moderate income? USDA is hard to beat. Otherwise conventional carries the day. Dual-eligible families should see both priced together.

Question 61

Building vs buying an existing home in Union County — how does financing compare on a conventional construction loan?

Accepted Answer

Financing effort is nearly identical with a One-Time Close — one approval, one closing, just like a purchase. Building adds the builder package and a longer runway but delivers new-code construction, current wind mitigation (real insurance savings in Florida), zero deferred maintenance, and exactly the floor plan you want. With Union County resale inventory aging, the build math deserves a genuine look.

Factor	Conventional	FHA	USDA	VA
Down payment	5% common	3.5%	$0	$0
Where in Union County	Anywhere	Anywhere	Eligible areas only	Anywhere
Income cap	None	None	Yes — county limit	None
Monthly mortgage insurance	PMI — cancels at equity	0.55% typical, often loan-life	0.35% annual fee	None
2026 ceiling	$832,750	$541,287	No set max (income-driven)	No limit, full entitlement
Upfront government fee	None	1.75% MIP	1% guarantee fee	Funding fee (waivable)

Conventional Construction Loans in Union County — Build Anywhere, PMI That Cancels

Key facts about the conventional construction loan in Union County

Conventional builds in all of Union County

Is conventional the right door for your Union build?

USDA in Union County

FHA in Union County

VA in Union County

Union County offices you'll actually use during a build

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Planning Department

Property Appraiser

GIS / Parcel Viewer

Health Department

Water Management District

Clerk of Court

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Settling into Union County — every office in one place

County Government

Tax Collector

School District

Supervisor of Elections

Sheriff's Office

Chamber of Commerce

Visitors Bureau

Local Newspaper

Wikipedia & County Facebook

Union County conventional construction loan FAQ — 61 answers from the guidelines

Program Basics7 Q

Eligibility & Credit8 Q

Property, Land & Site6 Q

Construction & Builders20 Q

Fees, Money & Timing8 Q

Process, Docs & Underwriting7 Q

Comparisons5 Q

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Conventional Construction Loans by Florida County

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