VA construction loans in Texas are making it possible for veterans throughout the state to build their dream homes.
So if you’re a veteran living in Texas [or looking to relocate to Texas], your dream home could be far more within reach than you’ve ever thought before.
Building Your Own Home vs. Buying a Home
Texas has one of the most competitive housing markets in the nation. One that’s getting hotter every day. And not just in areas like Houston or Dallas-Fort Worth.
So if it’s been looking just impossible for you to buy your dream home in Texas right now, that’s ok. In fact, it might be great.
Because with today’s VA construction loans, you don’t have to be at the mercy of the market. You can build your dream home.
Read on to learn what you need to know now about VA construction loans in Texas. And if you have any questions, contact us.
Five Things to Know About
VA Construction Loans in Texas
1. Most VA Construction Loans Require No Down Payment.
Depending on your situation, you could actually get a loan without putting even one dollar down [yes, that’s 0% Down for a VA construction loan and the start of your dream home].
Even if you’re getting a VA construction loan to cover both your land purchase and home build, you can secure that loan with no down payment.
And no payments are due during construction. That means you don’t have to start paying the loan until construction is complete.
Now, there’s one caveat here. These loans can be for as much as $750,000. And a down payment is required when the loan amount exceeds $453,100 [per VA requirements].
2. Finance Your Land Purchase And Construction With One VA Construction Loan.
If you already own some land and have been waiting to build until you had the funds, then a VA construction loan will allow you to build your dream home a lot sooner.
And if you don’t own the land yet, then you can use one VA home loan to finance the lot/land acquisition and the construction. All at once, with one closing.
3. With a one-time close, your rate is set. And it won’t go up.
One of the biggest differences with a VA construction loan is that the permanent loan rate is set upfront. Want that in plain English? That means you don’t have any risk of rates increasing during construction.
Your dream house won’t be built in a day. So this added security is important. And it’s even more important in a rising rate environment like we are in now. Other people’s rates might rise, but yours will stay the same throughout construction.
This isn’t something every bank or every construction loan can promise.
In fact, most banks offer interim loans — also referred to as Two-Time Close construction loans — instead of the one-time close VA construction loan.
With a two-time close construction loan, you get a construction loan to cover the active building stage of the house, and then you have to go through the whole loan process again to get a “permanent loan” to cover you after construction is completed. It sounds like a lot more work. Because it is.
And that’s yet another way the one-time close VA construction loan is helping veterans build their dream homes in Texas.
4. You Can Build Any Type of Home With Your VA Construction Loan.
Your dream home is just that — yours. You get to decide what the right type of home is for you, and design it from the smallest detail on up to the whole finished home.
And this type of loan can be used to build any type of permanent home.
Whether your dream home is a single family house, a modular home, a manufactured home [doublewide and triplewide], the VA construction loan can help you make it happen.
5. You Don’t Need Perfect Credit.
You’ve probably been told you have to have stellar credit if you’re ever going to own your own home. But that’s not always true.
Yes, mortgage lenders do use your credit score when evaluating what kind of loan you can get. But…
For the VA construction loans that Lendid is authorized to provide, your credit score needs to be a minimum of 620 (a lot of banks will have a 680 minimum score).
On the scale of 300-850, that puts you at about the middle of the road. Not stellar, not poor. And not shut out from your dream home.
That’s it. Those are the first five things you need to know about VA construction loans in Texas. And how a loan like this could help you build your dream home in Texas.
If you have any questions, or if you’re ready to get started on that dream home today, get started now. We’d be honored to help you out.
Topics: Home Loans