Every Address Qualifies
FHA Construction Loans in Nassau County — Build Anywhere with 3.5% Down
No eligibility map. No income cap. No military service required. The FHA One-Time Close builds a brand-new home at any address in Nassau County — inside Fernandina Beach, where USDA can't reach, or out in the county's acreage country — with land, construction, and your permanent mortgage in one closing.
Jim Blackburn · NMLS #1072866 · 7× Scotsman Guide Top Producer · $500M+ closed · (954) 993-1625
3.5%
Minimum Down
On the total acquisition cost — and gift funds from family can cover all of it.
$604,900
2026 Nassau County FHA Limit
The maximum one-unit FHA loan amount here — set by HUD, county by county.
Anywhere
In the County
Fernandina Beach and every town around it — FHA has no geographic restriction.
1
Closing · Start to Finish
One-Time Close: no payments during construction, automatic conversion at completion.
Key Facts & Highlights
Key facts about the FHA construction loan in Nassau County
- FHA financing works at every address in Nassau County — there is no eligibility map, no income limit, and no first-time buyer requirement. (HUD's 203(b) program)
- The 2026 FHA loan limit for a one-unit home in Nassau County is $604,900 — HUD sets limits county by county, and this figure is Nassau's. (HUD county loan limit lookup)
- Minimum down payment is 3.5% with qualifying credit — and 100% of it can be gift funds from family. (HUD Handbook 4000.1, down payment & gift rules)
- New construction is fully eligible through the FHA One-Time Close: land, site work, and construction in a single closing that converts to the permanent mortgage. (FDIC Affordable Mortgage Lending Guide)
- FHA's credit flexibility is the widest of the three government programs — qualifying is possible at scores conventional lending turns away. (HUD 4000.1 credit analysis guidelines)
- Nassau County permits, inspections, and septic approvals run through the county offices linked below — the same offices your builder will work with. (Nassau County permitting)
Every City. Every Address.
FHA builds in all of Nassau County — no map to check
This is FHA's superpower here: USDA's eligibility lines exclude the urban core, and VA requires service history. FHA asks neither. Every community below — urban, suburban, or rural — qualifies at the same 3.5% down.
BrycevilleCallahanFernandina BeachHilliardYulee
Building outside Fernandina Beach with a household income under the county limit? Compare the $0-down USDA construction loan in Nassau County before you commit — dual-qualified buyers should price both.
The Money Math
What 3.5% down looks like on a Nassau County build
Hypothetical acquisition costs (land + construction), the minimum investment beside each — all inside Nassau's $604,900 limit. Every scenario reviewed personally by Jim Blackburn, NMLS #1072866:
| Total project cost | 3.5% minimum down |
|---|---|
| $300,000 — starter build near Bryceville | $10,500 |
| $400,000 — family home outside Callahan | $14,000 |
| $500,000 — custom build, Fernandina Beach area | $17,500 |
Every dollar can be gift funds. Seller/builder credits up to 6% can cover closing costs on top. Hypothetical figures — your Loan Estimate is the real document. Full worksheet on the FHA Closing Cost Calculator.
Three Programs, One County
Is FHA the right door for your Nassau build?
Nassau County builders have up to three government-backed paths. The honest comparison:
| Factor | FHA | USDA | VA |
|---|---|---|---|
| Down payment | 3.5% | $0 | $0 |
| Where in Nassau County | Anywhere — Fernandina Beach included | Eligible areas only (address check) | Anywhere |
| Income cap | None | Yes — county household limit | None |
| Who can use it | Anyone who qualifies | Anyone within the income limit | Eligible service members, veterans & surviving spouses |
| 2026 loan ceiling | $604,900 (county limit) | No set maximum (income-driven) | No limit with full entitlement |
| Credit flexibility | Widest of the three | GUS ~640 marker, manual possible | No official minimum |
$0 Down · Rural & Suburban
USDA in Nassau County
Under the income limit and outside the urban core? USDA builds with nothing down.
USDA construction loans →$0 Down · Veterans
VA construction loans
Service-connected? Your benefit builds anywhere in the county with no down payment and no loan limit.
VA construction loans →The Junction
USDA · FHA · VA compared
The full three-way comparison — fees, ratios, geography, and construction paths side by side.
Compare all three programs → Build Resources
Nassau County offices you'll actually use during a build
Permits & Inspections
Building Department
Permits, inspections, and fees for a new-construction home in Nassau County.
nassaucountyfl.com Planning & Zoning
Planning Department
Setbacks, land use, and what your lot allows.
nassaucountyfl.com Parcels & Values
Property Appraiser
Parcel search and property records for every lot in the county.
ncpafl.com Maps
GIS / Parcel Viewer
Zoom to any parcel — boundaries, zoning, and flood layers.
nassaucountyfl.com Septic Permits
Health Department
OSTDS (septic) permitting for lots outside sewer service.
nassau.floridahealth.gov Utilities
Utilities Authority
Power and water service areas — or where well & septic take over.
nassaucountyfl.com County Directory
Settling into Nassau County — every office in one place
Beyond the build: the civic links every new Nassau County homeowner ends up needing.
Government
County Government
The county's official site — commissioners, departments, services.
nassaucountyfl.com Business
Chamber of Commerce
The local business network — including builders and trades.
nassaucountyflchamber.com Common Questions
Nassau County FHA construction loan FAQ — 61 answers from the guidelines
Sourced from HUD Handbook 4000.1 and the One-Time Close program guides, localized to Nassau County. Reviewed by Jim Blackburn, NMLS #1072866. Click any question.
Program Basics7 Q
What is FHA mortgage insurance (MIP) in Nassau County?
Two pieces: an upfront premium of 1.75% of the loan (usually financed in) and an annual premium paid monthly. It's the cost of the insurance that makes 3.5% down possible. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
What exactly is an FHA loan in Nassau County?
It's a mortgage insured by the Federal Housing Administration, which lets lenders offer low down payments and flexible credit standards. You borrow from a lender, not the government — FHA's insurance is what makes the friendly terms possible. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
Does FHA mortgage insurance ever go away in Nassau County?
If you put at least 10% down (loan at or under 90% of value), MIP drops off after 11 years; above that, it runs for the life of the loan. Most borrowers who want it gone sooner simply refinance once they've built equity. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
Is FHA only for low-income buyers in Nassau County?
No — FHA has no income limits at all, high or low. That's a key difference from USDA, which caps household income; FHA cares about your credit, your debts, and the property in Nassau County.
Who is the FHA construction loan designed for in Nassau County?
Buyers who want a brand-new home without a big down payment — first-time builders, growing families, and anyone tired of bidding wars on used inventory around Fernandina Beach and Hilliard. If you can qualify for an FHA purchase, construction may be within reach.
Can I use an FHA loan for a rental or vacation home in Nassau County?
No — FHA is for a primary residence you'll occupy. Investment and second-home financing runs through other programs we can walk you through. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
What loan terms are available on FHA construction loans in Nassau County?
A 30-year fixed permanent loan, with a construction phase that typically runs 4, 6, or 9 months depending on the build in Nassau County. Twelve-month construction terms are available on an exception basis for larger projects.
Eligibility & Credit8 Q
Does my spouse have to be on the FHA loan in Nassau County?
No — you can apply solo. In community property states, a non-borrowing spouse's debts are counted in your ratios even though they're not on the loan, so we account for that up front. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
I just started a new job — can I still qualify on a FHA construction loan in Nassau County?
Often yes. A new job or an employment gap simply needs a letter of explanation, and a verbal verification of employment happens before closing. Career moves don't have to derail a construction timeline. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
Can a family member co-sign on my FHA loan in Nassau County?
Yes — FHA allows non-occupant co-borrowers, typically family members, to strengthen your application. It's one of the cleanest ways parents help adult children into a first home or a new build in Nassau County.
I'm paid hourly with variable income — what extra documentation is needed on a FHA construction loan in Nassau County?
A written verification of employment is required on hourly income, and variable pay may need extra documentation — a letter explaining raises, bonuses, or job gaps. Nothing exotic; just a clear paper trail. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
How long after bankruptcy can I get an FHA loan in Nassau County?
Chapter 7: generally two years from discharge with re-established credit. Chapter 13 can work after just one year of on-time plan payments with court permission — one of FHA's most forgiving features. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
How long after a foreclosure can I qualify for FHA in Nassau County?
Generally three years from the date the foreclosure completed, with documented extenuating circumstances sometimes shortening that. The clock has usually run down further than people think — it's worth checking your actual dates. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
Do collections or charge-offs disqualify me from FHA in Nassau County?
Not automatically — many loans are approved with old collections still on the report. Larger collection balances may need a payment plan or a small monthly amount counted in your ratios, but they're rarely a dead end. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
What if I have a gap in my work history on a FHA construction loan in Nassau County?
FHA can work with gaps of six months or more once you're back on the job at least six months with a documented two-year history before the gap. Job changes within the same field are generally a non-issue. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
Property, Land & Site7 Q
What about buying a fixer-upper instead of building on a FHA construction loan in Nassau County?
That's FHA 203(k), which wraps renovation costs into a purchase loan for an existing home. Ground-up new construction runs through One-Time Close instead — different tools for different projects. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
Is there a maximum acreage for FHA in Nassau County?
No hard acreage cap — the real test is whether the appraiser can find comparable sales supporting a residential (not agricultural) property. Large Nassau County parcels routinely work when nearby comps exist.
Can I buy land now and build later with FHA in Nassau County?
FHA's construction financing is built to do both at once — land and build in one closing. If you buy land separately first, that's fine too; your equity in it counts when you're ready to build. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
Are condos eligible for FHA in Nassau County?
Yes, when the project in Nassau County is FHA-approved — an approval that attaches to the whole development, not just your unit. We check the FHA condo list before you fall in love with a unit.
Can I build in a flood zone with FHA in Nassau County?
Site-built homes can be financed in flood zones with proper flood insurance and elevation compliance. Manufactured homes are the exception — the dwelling itself can't sit in Flood Zone A or V, though the land can include those areas. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
Can I build on land my family owns on a FHA construction loan in Nassau County?
Yes — family land can be gifted or sold to you, and gift-of-equity rules often let that land value serve as your down payment. It's one of the most powerful paths to a Nassau County build with minimal cash.
Is rural land eligible for FHA construction in Nassau County?
Yes — FHA has no rural restriction and no urban requirement. Acreage outside Fernandina Beach works as long as the site supports a residential appraisal and meets property standards. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
Construction & Builders18 Q
How is a home that doesn't exist yet appraised on a FHA construction loan in Nassau County?
The appraiser works from your plans, specifications, and builder contract, valuing the home 'subject to completion' using comparable sales around Nassau County. That appraised value drives your loan just like it would on an existing home.
Can family gift me land to build on on a FHA construction loan in Nassau County?
Yes — gifted land or a gift of equity in family land is a common and allowed path. In many cases the equity in that gifted land covers most or all of your down payment requirement. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
How does my builder get paid on a FHA construction loan in Nassau County?
Through inspected draw stages — foundation, framing, mechanicals, and so on — with funds released as each stage passes inspection. Builders like it because payment is predictable; you're protected because work is verified first. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
How do draws work for a manufactured home build on a FHA construction loan in Nassau County?
The first draw can pay for the home in Nassau County before it leaves the factory — with the factory invoice and insurance in place — then the remaining draws follow site work and setup. Factory-built projects can be funded up to 80% of contract price before the final draw.
Do FHA loan limits apply to construction loans in Nassau County?
Yes — your total loan must fit within the FHA limit for Nassau County, covering land plus construction combined. We check your budget against the county limit at the very start so there are no late surprises.
Am I charged mortgage insurance during the construction phase on a FHA construction loan in Nassau County?
MIP is part of the FHA loan structure from closing, with upfront MIP typically financed into the loan rather than paid in cash. Your loan estimate lays out exactly how it's applied before you sign. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
How much do I need down for an FHA construction loan in Nassau County?
As little as 3.5% of the total acquisition cost — land plus construction — with qualifying credit. That's one of the lowest entry points of any ground-up construction program available to civilian buyers in Nassau County.
Is termite treatment required on new FHA construction in Nassau County?
In most areas, yes — soil treatment or equivalent protection is documented during construction on the standard industry forms. Your builder handles it as a routine line item. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
Can I include upgrades like solar in the construction budget on a FHA construction loan in Nassau County?
Upgrades priced into the builder contract can be financed if the appraised value supports the total cost. The test is always the same: will the finished home appraise for what it costs to build? In Nassau County — including around Bryceville and Callahan — the same guideline applies.
How do construction draws work on a FHA construction loan in Nassau County?
Your builder completes a stage of work, an inspection verifies it, and funds for that stage are released. Draws continue on that verify-then-pay rhythm until the home in Nassau County is finished — the builder is never paid ahead of the work.
What are construction soft costs on a FHA construction loan in Nassau County?
The non-hammer-and-nails expenses: construction administration, underwriting and inspection fees, permits, plans, and interim financing costs. They're budgeted into the builder's project cost — and importantly, they don't count against your seller-concession limits. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
Can I build a barndominium with FHA financing in Nassau County?
Often yes, if it's designed and permitted as a residence, built by a licensed builder, and appraises with comparable sales support in Nassau County. The appraisal is usually the deciding factor for less conventional designs.
Can I get cash back at closing on a FHA construction loan in Nassau County?
No. In Nassau County, Borrowers may not receive funds, reimbursements, or cash back from the transaction. A minimal principal reduction at closing is the only exception.
Is my financing protected during the months of construction on a FHA construction loan in Nassau County?
Yes — One-Time Close programs use extended rate protection so the terms you close with carry through the build in Nassau County. You're not exposed to market moves between groundbreaking and move-in.
Can well, septic, and driveway costs be financed in the FHA loan in Nassau County?
Yes — necessary site improvements like well drilling, septic installation, grading, and the driveway belong in the construction budget. That matters on rural Nassau County lots where site work can run tens of thousands.
How much of the contract can be paid out before the final draw on a FHA construction loan in Nassau County?
Site-built homes can be funded up to 90% of the final contract price before the final draw; factory-built homes up to 80%. The holdback keeps everyone motivated to finish strong. In Nassau County, the 2026 FHA loan limit is $604,900 — your file is sized against it.
Can I include a garage or detached shop in my FHA build in Nassau County?
An attached or detached garage that's typical for Nassau County properties can generally be included. Large specialty outbuildings get more scrutiny because the appraisal must support their value with comparable sales.
What is the cost breakdown form and why does it matter so much on a FHA construction loan in Nassau County?
It's the line-item budget your builder completes — every cost from permits to final grading with a dollar figure attached. It becomes the disbursement schedule for the entire build, so an incomplete or sloppy breakdown stalls everything. We review it before submission. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
Fees, Money & Timing8 Q
How much can the seller contribute toward my costs on a FHA construction loan in Nassau County?
Up to 6% of the price — one of the most generous interested-party allowances in mortgage lending. On new construction, builder contributions follow the same framework. In Nassau County, the 2026 FHA loan limit is $604,900 — your file is sized against it.
What closing costs should I expect on an FHA loan in Nassau County?
Typical items: appraisal, title, origination, government recording, prepaid taxes and insurance — generally a low single-digit percentage of the loan. On construction, remember it's one set of costs instead of the two a traditional build requires. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
Do construction fees eat into my 6% seller concession limit on a FHA construction loan in Nassau County?
No — construction soft costs are budgeted into the builder's project cost and don't count toward the maximum contributions allowed to you. Your 6% stays available for actual closing costs and prepaids. In Nassau County, the 2026 FHA loan limit is $604,900 — your file is sized against it.
How long does an FHA construction loan take to close in Nassau County?
Plan on roughly 45-60 days from full application to closing — the builder package, plans-and-specs appraisal, and program review add steps a standard purchase doesn't have. Getting your builder's paperwork in early is the single biggest accelerator. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
Is an escrow account required on FHA loans in Nassau County?
Yes — taxes and insurance are escrowed on every FHA loan, no waivers. Most borrowers prefer it anyway: one payment, no surprise tax bills. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
Do I pay property taxes during construction on a FHA construction loan in Nassau County?
Land taxes continue during the build and are handled through the loan structure; the full improved-value tax bill doesn't hit until Nassau County reassesses the completed home. Your escrow account is set up to absorb the transition.
Do I need earnest money on a new build on a FHA construction loan in Nassau County?
If you're buying the lot, earnest money works like any purchase and credits at closing. Builder deposits under your construction contract are separate and get accounted for in the overall budget. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
Can my down payment be a gift on a FHA construction loan in Nassau County?
Yes — 100% of your FHA down payment can come from family gift funds with a simple gift letter and paper trail. No portion has to be your own saved money. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
Process, Docs & Underwriting8 Q
What has to be cleared before we can close on a FHA construction loan in Nassau County?
Both tracks finish together: your borrower file clears its underwriting conditions, and the construction project clears its review. When both are done, closing documents are prepared and you sign once. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
Is there one appraisal or two on a FHA construction loan in Nassau County?
One. A full FHA appraisal is completed before closing with the value assigned as completed, and it doesn't expire once the loan closes. One appraisal, one fee, no repeat at the finish line in most cases. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
What is an FHA case number in Nassau County?
It's the loan's federal registration with HUD, pulled early in the process — think of it as the loan's serial number. On condos and certain properties, timing rules govern when it can be issued. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
What most often slows down an FHA construction approval in Nassau County?
Incomplete builder paperwork, budget line items that don't match the plans, and slow responses to document requests. Files where the borrower and builder respond within 24 hours close dramatically faster. In Nassau County — including around Hilliard and Yulee — the same guideline applies.
Should I get pre-approved before choosing a builder on a FHA construction loan in Nassau County?
Yes — knowing your qualified budget first means you shop Nassau County builders and plans with real numbers instead of guesses. It also signals to builders that you're a serious, financeable client.
Do my documents expire during a long build on a FHA construction loan in Nassau County?
Credit and income documents are valid 120 days and appraisals 180 days — measured to closing, which happens before construction starts on a One-Time Close. That's a quiet advantage: your qualification is locked before the build in Nassau County, not re-checked after.
What does the appraiser need to value my future home on a FHA construction loan in Nassau County?
Builder plans and specs, the construction contract, the cost breakdown, the land contract if applicable, and a title report with legal description. Complete packages produce clean appraisals — we assemble it all before ordering. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
How is underwriting different for a FHA construction loan in Nassau County?
Everything a standard FHA loan reviews, plus the project in Nassau County itself: builder credentials, budget reasonableness, plans, and the subject-to-completion appraisal. You're approved once, for both the build and the permanent mortgage.
Comparisons5 Q
FHA One-Time Close vs FHA 203(k) — which do I need in Nassau County?
One-Time Close builds a brand-new home from the ground up; 203(k) buys and renovates an existing home in one loan. New construction in Nassau County means OTC — 203(k) can't fund a ground-up build.
Is building new with FHA smarter than buying an existing home in Fernandina Beach?
Building gets you exactly the layout you want, new-everything with builder warranties, and no bidding wars — at 3.5% down, the entry cost matches buying existing. Resales win on speed. When Fernandina Beach inventory is thin or dated, building often pencils out surprisingly close. In Nassau County — including around Callahan and Fernandina Beach — the same guideline applies.
FHA vs VA construction — what's the difference in Nassau County?
VA is exclusively for eligible veterans and service members: $0 down, no monthly mortgage insurance. FHA is open to everyone at 3.5% down with MIP. If you have VA eligibility, it usually leads; FHA is the strongest construction path for everyone else. In Nassau County — including around Yulee and Bryceville — the same guideline applies.
FHA vs USDA construction loan in Nassau County — which fits me?
USDA offers $0 down but requires an eligible rural address and household income under the county limit. FHA takes 3.5% down with no income cap and no geography rules — buildable even in Fernandina Beach. Dual-eligible buyers should see both priced side by side. In Nassau County — including around Fernandina Beach and Hilliard — the same guideline applies.
FHA vs conventional for a new construction loan in Nassau County?
Conventional construction typically wants larger down payments and stronger credit, and often two closings. FHA One-Time Close wins on entry cost — 3.5% down, flexible credit, single closing — while conventional can win on mortgage insurance for high-credit, larger-down borrowers. In Nassau County — including around Bryceville and Callahan — the same guideline applies.
Local Pulse
What's happening in Nassau County
Jacksonville Daily Record · 2026-06-26
Regional Project Update, Nassau and St. Johns Counties: D-BAT exploring site, Madison Seagrass multifamily community broke ground and more
Madison Seagrass groundbreaking and new site exploration signal active residential development and housing expansion in Nassau County.
Updated automatically — sources are original local publishers.
Ready to build anywhere in Nassau County?
Jim Blackburn (NMLS #1072866) — $500M+ closed, construction lending done daily. Straight answers on your lot, your budget, and which of the three programs actually fits.
FHA Construction Loans by Florida County
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FHA loan limits are set by HUD and subject to change. Program guidelines and fees are subject to change. This page is educational and is not a commitment to lend or a guarantee of approval. Down payment shown is the program minimum with qualifying credit.