VA New Construction Loan | Guidelines & Property Types

VA New Construction Loan Guidelines & Property Types

VA New Construction Loan | Guidelines & Property Types

Looking for a VA new construction loan? Most construction loans require two loans – a bridge loan and a permanent VA loan.  This VA new construction loan allows veterans to finance the lot, construction, and permanent loan with one single closing.

Property Types

A veteran can finance the construction, lot purchase, and permanent mortgage for stick-built, modular, and manufactured homes.   This allows you to avoid a second appraisal, re-qualifying for permanent financing, and incurring additional costs.

There are ineligible property types such as, single-wide manufactured homes, condominiums, multi-unit, multiple homes on one lot, attached or semi-detached, and other types of non-traditional construction types.

Land can be purchased, gifted following VA gift guidelines, or owned.

Advantages

Most types of new construction loans require a larger down payment with unfavorable interest rates.  These types of loans incur additional costs because of having to qualify twice for a loan and pay for closing costs twice.

The VA new construction loan does not require re-qualification or a second appraisal due to the nature of the loan. 

Funding for the construction, lot purchase, and permanent financing is done at one closing.  You will work with a team that is knowledgeable with the new construction loan process.

Key Factors

VA New Construction Guidelines

VA Construction Loan Requirements

After closing, the construction can begin. The loan is closed prior to construction beginning, which no re-qualifying of the borrower is required.  The Builder/Retailer does not have to get their own loan for construction costs – often bridge loans require larger down payments with unfavorable interest rates.

Other Types of New Construction Loans

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