VA One-Time Close Construction Loan
The most common question we get at Veterans Lending Group is this: Can I buy land AND build a home using my VA Home Loan Benefit? The answer is YES, you can! This is called the “VA One-Time Close Construction Loan”. How this works, is first you find the land, and then you find a builder. We, as a mortgage company, have to validate your builder. We have to make sure that your builder has a good reputation; that they pay their bills on time, pay their contractors, etc. We do this so that we can be confident your house will be completed properly and on time!
Only 5% Down!
Some of the benefits of this program are you do NOT have to put 20% to 30% down like you normally would on a land loan or vacant land loan. With a VA Construction Loan, you only have to put 5% down based on the total acquisition. That means that if your land is $100,000 and your construction is $400,000 (there are some fees, interest payments & other things included) then you ONLY have to pay 5% down on the total balance!
Minimum 660 Credit Score
While it’s true that the VA has no minimum credit score when using your VA Loan, you must have a 660 credit score to use the VA One-Time Close Construction Loan.
No Payments During Construction!
Since it’s only one loan, you don’t pay two sets of closing costs like you normally would on a custom construction, and the BIGGEST BENEFIT is this: you do NOT have to make payments during construction, on a construction loan! Those are rolled into the loan later on, so no payments during construction.
Get Started Today!
If you would like to learn more about using the VA Construction Loan to buy land and build a home, then please fill out this Form, Text or Call Us at 855-701-4663, and one of our friendly VA Loan Specialists will be in touch with you shortly!