Every Address Qualifies
FHA Construction Loans in Union 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 Union County — inside Lake Butler, 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.
$541,287
2026 Union County FHA Limit
The maximum one-unit FHA loan amount here — set by HUD, county by county.
Anywhere
In the County
Lake Butler 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 Union County
- FHA financing works at every address in Union 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 Union County is $541,287 — HUD sets limits county by county, and this figure is Union'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)
- Union County permits, inspections, and septic approvals run through the county offices linked below — the same offices your builder will work with. (Union County permitting)
Every City. Every Address.
FHA builds in all of Union 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.
Lake ButlerRaifordWorthington Springs
Building outside Lake Butler with a household income under the county limit? Compare the $0-down USDA construction loan in Union County before you commit — dual-qualified buyers should price both.
The Money Math
What 3.5% down looks like on a Union County build
Hypothetical acquisition costs (land + construction), the minimum investment beside each — all inside Union's $541,287 limit. Every scenario reviewed personally by Jim Blackburn, NMLS #1072866:
| Total project cost | 3.5% minimum down |
|---|---|
| $300,000 — starter build near Lake Butler | $10,500 |
| $400,000 — family home outside Raiford | $14,000 |
| $500,000 — custom build, Worthington Springs 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 Union build?
Union County builders have up to three government-backed paths. The honest comparison:
| Factor | FHA | USDA | VA |
|---|---|---|---|
| Down payment | 3.5% | $0 | $0 |
| Where in Union County | Anywhere — Lake Butler 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 | $541,287 (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 Union 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
Union County offices you'll actually use during a build
Permits & Inspections
Building Department
Permits, inspections, and fees for a new-construction home in Union County.
unioncounty-fl.gov Planning & Zoning
Planning Department
Setbacks, land use, and what your lot allows.
unioncounty-fl.gov Parcels & Values
Property Appraiser
Parcel search and property records for every lot in the county.
union.floridapa.com Maps
GIS / Parcel Viewer
Zoom to any parcel — boundaries, zoning, and flood layers.
union.floridapa.com Septic Permits
Health Department
OSTDS (septic) permitting for lots outside sewer service.
union.floridahealth.gov Utilities
Utilities Authority
Power and water service areas — or where well & septic take over.
clayelectric.com County Directory
Settling into Union County — every office in one place
Beyond the build: the civic links every new Union County homeowner ends up needing.
Government
County Government
The county's official site — commissioners, departments, services.
unioncounty-fl.gov Taxes
Tax Collector
Property taxes, titles, and registrations for your new address.
unioncountytc.com Business
Chamber of Commerce
The local business network — including builders and trades.
Contact us for the current office link. News
Local Newspaper
The county's news of record.
Contact us for the current office link. Reference
Wikipedia & County Facebook
History, demographics, and the official county feed.
en.wikipedia.org Common Questions
Union 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 Union County. Reviewed by Jim Blackburn, NMLS #1072866. Click any question.
Program Basics7 Q
What section of FHA does a construction loan fall under in Union County?
It's the standard FHA 203(b) program — the same core FHA loan used for regular purchases — set up with a construction-to-permanent designation. Same FHA insurance, same 3.5% down, applied to a home that doesn't exist yet. In Union County — including around Lake Butler and Raiford — the same guideline applies.
What is FHA mortgage insurance (MIP) in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I use an FHA loan for a rental or vacation home in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Does FHA mortgage insurance ever go away in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
What exactly is an FHA loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
What loan terms are available on FHA construction loans in Union County?
A 30-year fixed permanent loan, with a construction phase that typically runs 4, 6, or 9 months depending on the build in Union County. Twelve-month construction terms are available on an exception basis for larger projects.
Who actually insures an FHA loan in Union County?
The Federal Housing Administration, an agency within HUD, insures the lender against loss. That federal backing has made FHA the workhorse of accessible homeownership since 1934. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Eligibility & Credit8 Q
Can a family member co-sign on my FHA loan in Union 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 Union County.
How long after bankruptcy can I get an FHA loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Does my spouse have to be on the FHA loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
I just started a new job — can I still qualify on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
What if I have a gap in my work history on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
I'm paid hourly with variable income — what extra documentation is needed on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I get an FHA loan with no credit score in Union County?
Potentially yes — FHA allows non-traditional credit like rent, utilities, and insurance payment history in place of a score. It's a manual process, but it's a real path many programs simply don't offer. In Union County — including around Lake Butler and Raiford — the same guideline applies.
How long after a foreclosure can I qualify for FHA in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Property, Land & Site7 Q
Is rural land eligible for FHA construction in Union County?
Yes — FHA has no rural restriction and no urban requirement. Acreage outside Lake Butler works as long as the site supports a residential appraisal and meets property standards. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Are there restrictions on resale or deed-restricted communities on a FHA construction loan in Union County?
Resale deed restrictions aren't permitted on this program. If your lot in Union County sits in a community with unusual deed terms, flag it early and we'll review the specifics before you commit.
What are FHA minimum property standards in Union County?
Safety, soundness, and security — no structural defects, working systems, safe water, and no health hazards. New construction clears these by default; they matter most when comparing a new build against an aging resale. In Union County — including around Lake Butler and Raiford — the same guideline applies.
What about buying a fixer-upper instead of building on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I build on land my family owns on a FHA construction loan in Union 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 Union County build with minimal cash.
What are FHA's manufactured home requirements in Union County?
Built after June 1976 to HUD code, at least 12 feet wide with 600+ square feet, permanently affixed on an engineer-certified foundation, on land you own, and taxed as real property. Multi-wide only — single-wides don't qualify. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Are condos eligible for FHA in Union County?
Yes, when the project in Union 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.
Construction & Builders18 Q
Am I charged mortgage insurance during the construction phase on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I build a duplex or multi-unit with FHA One-Time Close in Union County?
FHA construction programs are generally limited to one-unit primary residences. If multi-unit is the goal, buying an existing 2-4 unit property with a standard FHA loan is the more workable path. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Is termite treatment required on new FHA construction in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
How much do I need down for an FHA construction loan in Union 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 Union County.
Do I have to own land before applying for an FHA construction loan in Union County?
No — the land purchase can be part of the same closing. Find the lot in Union County, line up the builder, and one loan handles both.
Who pays for cost overruns during construction on a FHA construction loan in Union County?
First the contingency reserve, then the borrower if overruns exceed it — the loan amount is fixed at closing. A detailed, realistic builder budget up front is your best protection against this scenario. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I refinance out of my FHA loan after the home is built in Union County?
Absolutely — once you've built equity, refinancing to remove FHA mortgage insurance is a common move. Think of FHA construction as the low-barrier way in, not a permanent commitment. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I act as my own general contractor on an FHA build in Union County?
Generally no — FHA construction programs require a licensed general contractor to run the project in Union County. Owner-builder arrangements introduce risk that the program isn't designed to absorb, even for experienced tradespeople.
Can well, septic, and driveway costs be financed in the FHA loan in Union County?
Yes — necessary site improvements like well drilling, septic installation, grading, and the driveway belong in the construction budget. That matters on rural Union 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 Union 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 Union County, the 2026 FHA loan limit is $541,287 — your file is sized against it.
What if the appraisal comes in below my total project cost on a FHA construction loan in Union County?
You'd bridge the gap — trim the budget with your builder, bring additional funds, or adjust the plans. It's one reason we review the numbers against local Union County comps before you're deep into the process.
When does my first mortgage payment start on a FHA construction loan in Union County?
After construction is complete and the loan converts to its permanent phase. You'll know the payment structure before you close — no surprises at move-in. In Union County — including around Lake Butler and Raiford — the same guideline applies.
What can be rolled into an FHA construction loan in Union County?
The land purchase, the full construction contract, permitted site work, a contingency reserve, and certain closing costs can all live inside the single loan. The goal is minimal out-of-pocket beyond your down payment. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Can I include a garage or detached shop in my FHA build in Union County?
An attached or detached garage that's typical for Union County properties can generally be included. Large specialty outbuildings get more scrutiny because the appraisal must support their value with comparable sales.
Does my builder have to be approved on a FHA construction loan in Union County?
Yes — your builder must be licensed, insured, and registered with our construction lending partner before draws can fund. Registration is usually a quick paperwork step for established Union County builders who haven't done it before.
How many draws does a typical build use on a FHA construction loan in Union County?
Five draws are typical for site-built homes, with additional draws available at added cost if the project in Union County needs them. Manufactured home builds typically use three.
How do construction draws work on a FHA construction loan in Union 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 Union County is finished — the builder is never paid ahead of the work.
Does my builder have to warranty the home on a FHA construction loan in Union County?
Yes — new construction under FHA comes with builder warranty protection, including a one-year warranty against defects. It's part of the standard document package, not something you have to negotiate. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Fees, Money & Timing8 Q
Can I use down payment assistance with FHA in Union County?
FHA pairs with many DPA programs, though note that assisted loans carry a somewhat higher minimum credit score. Availability for construction loans varies by program, so we confirm fit before you count on it. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Is an escrow account required on FHA loans in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Do I pay property taxes during construction on a FHA construction loan in Union County?
Land taxes continue during the build and are handled through the loan structure; the full improved-value tax bill doesn't hit until Union County reassesses the completed home. Your escrow account is set up to absorb the transition.
Do I pay the upfront mortgage insurance in cash on a FHA construction loan in Union County?
Almost nobody does — the 1.75% upfront MIP is typically financed into the loan amount. Your cash to close stays focused on down payment and standard closing costs. In Union County — including around Lake Butler and Raiford — the same guideline applies.
How much can the seller contribute toward my costs on a FHA construction loan in Union 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 Union County, the 2026 FHA loan limit is $541,287 — your file is sized against it.
Do I need earnest money on a new build on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Do construction fees eat into my 6% seller concession limit on a FHA construction loan in Union 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 Union County, the 2026 FHA loan limit is $541,287 — your file is sized against it.
Who pays for the appraisal and inspections on a FHA construction loan in Union County?
The appraisal is a standard borrower cost at application; draw inspections during construction are built into the program costs disclosed at closing. Everything is itemized on your loan estimate — no mystery fees mid-build. In Union County — including around Lake Butler and Raiford — the same guideline applies.
Process, Docs & Underwriting8 Q
Is there one appraisal or two on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Should I get pre-approved before choosing a builder on a FHA construction loan in Union County?
Yes — knowing your qualified budget first means you shop Union County builders and plans with real numbers instead of guesses. It also signals to builders that you're a serious, financeable client.
How is underwriting different for a FHA construction loan in Union County?
Everything a standard FHA loan reviews, plus the project in Union 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.
Who manages the draws after closing on a FHA construction loan in Union County?
Your builder requests draws directly from the construction management team as work completes — you're not the middleman. Progress is inspected, line items are matched to the cost breakdown, and funds are released for verified work. In Union County — including around Lake Butler and Raiford — the same guideline applies.
What documents do I need to apply for an FHA loan in Union County?
The usual core: two years of income history via W-2s or tax returns, recent pay stubs, bank statements, and ID. Construction adds the builder package — contract, plans, specs, and budget — which your builder supplies. In Union County — including around Lake Butler and Raiford — the same guideline applies.
When does my permanent rate get locked on a FHA construction loan in Union County?
Once the project in Union County is approved and the appraisal is complete, your permanent financing is locked ahead of the single closing — before construction ever begins. That sequencing is the rate-protection engine of One-Time Close.
What does the appraiser need to value my future home on a FHA construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Do my documents expire during a long build on a FHA construction loan in Union 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 Union County, not re-checked after.
Comparisons5 Q
FHA vs USDA construction loan in Union 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 Lake Butler. Dual-eligible buyers should see both priced side by side. In Union County — including around Lake Butler and Raiford — the same guideline applies.
FHA vs conventional for a new construction loan in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
Is building new with FHA smarter than buying an existing home in Lake Butler?
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 Lake Butler inventory is thin or dated, building often pencils out surprisingly close. In Union County — including around Lake Butler and Raiford — the same guideline applies.
FHA vs VA construction — what's the difference in Union 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 Union County — including around Lake Butler and Raiford — the same guideline applies.
FHA One-Time Close vs FHA 203(k) — which do I need in Union 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 Union County means OTC — 203(k) can't fund a ground-up build.
Local Pulse
What's happening in Union County
USAFacts · 2026-07-07
What is the unemployment rate in Union County, FL right now?
Local employment conditions affect housing demand and the financial stability of potential homebuyers in the area.
USAFacts · 2026-07-21
Is Florida's population growing or shrinking?
Population trends indicate long-term housing demand and development opportunities throughout Florida including Union County.
Updated automatically — sources are original local publishers.
Ready to build anywhere in Union 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.
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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.