Build your dream home with a VA construction loan today. Whether you’re an active duty service member or National Guard personnel that is always moving around, or you are a veteran, you still need a place to call home. That is where the VA One-Time Close Construction Loans come in.
Providing Zero Out of Pocket, 100% VA One-Time Close Construction Loans For The Following Property Types
The VA One-Time Close Construction Loan simplifies the process of receiving a loan to build your house, so you don’t have to worry about things like a second closing or a down payment. The simple loan program provides funds to finance both the construction and permanent mortgage of your home with a single loan.
With the one-time close construction loan, you can build a new home or purchase a manufactured or modular home. It also comes with the appealing parts of VA loans, which are the no down payment required, low-interest rates, and no monthly mortgage payments. This makes it better than traditional construction loans advises Ardent Trust Property Management experts.
Benefits of the VA One-Time Close Loan
There are different benefits of getting the VA one-time close construction loan to build or purchase your primary residence. Here are some of the VA loan benefits:
It Saves Money
If you’re looking for a way to save money on your VA construction loan, you should go for the one-time close loan. Since it is a single-closing loan program, you only need to pay for one appraisal and one closing cost. It also helps you save time on a second closing.
There Is No Requalification
Another VA loan benefit is that once you close the loan, you don’t have to worry about a requalification. The VA construction loan program would be in place and be used to build your new home.
No Payments Are Required During Construction
It might be hard to pay rent for a place you’re living in while paying off the home construction loan of the house that you are building. Luckily, the VA new construction loan does not require you to start paying the loan until the construction is complete.
Fixed and Low-Interest Rates
Not only does the VA one-time close construction loan come with low-interest rates, but these competitive interest rates remain fixed before the building process starts. So, you don’t have to worry about the interest rates of the VA loan increasing during the construction.
Find a Lender
You can’t get a VA purchase loan without working with a reliable lender. That is why you should consider working with one that is trusted by veterans around the country. Security America Mortgage is a good place to start for your one-time close construction loan.
Get Preapproved For A VA Home Loan
The first step to receiving your VA construction loan is to get preapproved. The preapproval process is essential because it gives you a feel of the VA construction loan process and also helps you understand the type of house that you can afford to build. You can ask your VA lenders to put you through the preapproval process on the va program best for you.
Acceptable Property Types
If you’re getting a VA one-time construction loan, there are specific properties that you would be able to purchase or build. Keep in mind that the house must be your primary residence. The property types include:
- 1 unit stick-built housing.
- New manufactured housing, multi-wide only.
- Modular homes.
- Planned unit development like condos.
Get The Property Appraised
You also need to get your property appraised to get a VA construction loan. It’s best to hire a VA home appraiser that can evaluate your proposed plans because these appraisers are familiar with the VA construction loan guidelines.
Find A VA-Registered Builder
It’s important to note that you cannot build a home with a VA loan unless you have a VA-registered builder. Not just any builder can construct your home. You can check the Veterans Information Portal or ask your lender to recommend a good VA-approved construction company for you. The builder must be VA-registered and submit their plans for the construction ahead of time.
Close On The VA Construction Loan
The best thing about a VA one-time close construction loan is the fact that there is a single closing. A single closing would reduce the paperwork and closing costs. Working with reliable VA construction loan lenders would help you close the VA loan faster.
The Project Starts When The Loan Is Approved
Once the VA loan has been approved, the construction project will start immediately. When you get the VA loan, the construction process can start working. Keep in mind that the borrower cannot perform any of the work being done and must work with a general contractor that is registered with the VA. The builder must also provide a one-year VA builder’s warranty.
Use a VA Mortgage to Build a Home From the Ground Up
With a VA mortgage, you can build your own home from the ground up. It is usually hard for people to access capital to build their dream homes. But if you’re a veteran, active duty service member or a National Guard personnel, you can qualify for the VA one-time close construction loan and start building your home.
Pass VA Inspection
There are usually VA inspections conducted during the construction phase of a new home. This is to ensure that all the onsite and offsite construction and improvement processes are being done based on the requirements. It should follow the VA value estimate and also the VA minimum property requirements.
Also, once the home is complete, there will be a final inspection by the VA. This would ensure that the home meets all the necessary standards. Once the VA loans have been approved, the borrower can start living in the home.
VA construction loan requirements 2023
If you’re getting a VA construction loan, there are some requirements that you need to keep in mind. For instance, you need a credit score of 620 to receive the loan. The eligible terms for the loan are 15-year and 30-year fixed. Also, the VA construction loans can only be used to make your primary residence.
Other requirements of the VA one-time close construction loan include the following:
- The borrower cannot perform any of the construction work.
- The general contractor must be registered with the VA.
- There must be periodic inspections of the property.
- Builders must provide a one-year warranty.
- The general contractor must have sufficient insurance.
Do I need a certificate of eligibility (COE) for a construction loan?
You need a certificate of eligibility for your construction loan. When an active duty member of the US military, veteran or surviving spouse wants to get a VA construction loan, they need to apply for the certificate of eligibility. The COE shows that you are eligible to receive a VA loan.
You can receive the certificate of eligibility through the Veterans Portal. Security America Mortgage also allows you to directly get the COE from the website.
Requirements for borrower’s
The qualified borrowers that can receive a Certificate of Eligibility include:
- Active duty service member.
- National Guard personnel.
- Qualifying surviving spouse.
- Eligible reservist.
- Veteran.
Also, you must meet the following requirements:
- The plans for the home must be appraised.
- You must work with a VA-approved builder that is licensed and insured.
- You and the builder must submit a complete set of plans along with the loan application.
Permanent VA Refinancing for Construction Loans
One of the ways you can take advantage of your VA construction loan is to convert it to a permanent loan and get lower interest rates. You can take advantage of the low-interest rates through the VA loan program by refinancing the loan.
Once the home construction loan has been converted to a permanent VA loan, you will get lower interest rates and lower funding fees.
Quick Highlights Of Our VA Construction Loan Programs
Here are some points you should keep in mind for the VA one-time close construction loan:
- The loan provides construction financing, permanent loan and lot purchase.
- You get a permanent portion of the loan approved prior to construction.
- No payments are due during construction.
- You get up to 100% financing through the VA, and even the funding fee can be financed into the loan.
- The fixed term options are 15-year and 30-year.
- It is only for your primary residence.
- The single closing reduces the paperwork and closing costs.
- The construction portion is approved and underwritten.
- There is no requalification once the construction is complete.
- The interest rate is fixed during construction.
- The minimum credit score is 620.
. No large down payment and usually 1000% with Veterans Affairs home loans through most lenders.
VA Rehab Loans: Financing renovations on your existing home
Veterans and active duty service members can also receive a VA rehab loan to renovate their existing homes. If you already own a home, but it needs repairs and updates, you can apply for a VA renovation loan. The loan allows you to update cabinetry, kitchens and bathrooms and add features for accessibility.
The VA renovation loan comes with different term options, including 10-year, 15-year, 20-year, 25-year and 30-year. It is also for your primary residence and is ideal for one or two-unit homes. It can be used for repainting, fixture swaps, and accessibility upgrades like ramps and rails.
Energy-improvement loans
You can also apply for a VA Energy Efficient Mortgage, which is a loan that is available through the VA. It allows veterans, eligible service members and National Guard personnel to finance energy efficiency-related home improvements like solar water heaters, weatherproofing, new insulation, solar panels, modifying furnace efficiency, and storm doors or windows.
Are credit qualifications higher with VA construction loans?
The credit qualifications are not higher with VA construction loans. If anything, you can get a VA one-time close construction loan with as low as 640 and a high debt level, unlike with a conventional construction loan. Even if you need a VA loan with bad credit, certain lenders might still work with you to find the right options. You also need to consider the debt to income ratio.
What kind of house can I build with a VA construction loan?
The type of house you can build with VA construction loans includes a one-unit stick-built house, a newly manufactured house, modular homes and PUDs.
When do mortgage payments begin with a VA construction loan?
Mortgage payments on VA construction loans start once the house is complete. Once the construction is completed and it has been approved by the VA, you can move in, and the mortgage payments will start.
Next steps for a VA construction or VA rehab loan
You can take your next step in getting a VA one-time close construction loan by working with a reliable lender. Start partnering with Security America Mortgage to get a VA loan that can construct your dream home or renovate your existing home.
