You probably know about VA home loans that make it easier for veterans to buy a home. But did you know that VA construction loans can make it possible for you to build your dream home?
The housing market here in Texas is highly competitive — as it is in several parts of the country right now. The number of homes on the market just isn’t keeping pace with the number of people getting ready to buy. And that means owning a home — let alone your dream home — could seem that much tougher.
So if you want to skip the competition with buyers and the haggling with sellers or if you don’t even want to think about a fixer-upper, you can still have your piece of the American dream.
Skip to the front of the line and build your dream home.
The VA One-Time Close Construction Loan is making it possible for veterans to build their dream home — and own their piece of the American dream, now.
What’s the VA One-Time Close Construction Loan?
This is all-in-one financing for veterans looking to build their home.
One loan covers the lot purchase, construction and permanent mortgage of your dream home. That means you cover it all with just one closing. So you pay closing costs just once. You get approved just once. You lock in that rate one time for the life of the loan.
You can use the loan to build the home that fits you. Whether your ideal home is a single family house, a modular home, or a manufactured home [doublewide and triplewide], you can make it a reality with the VA one-time close construction loan.
How the VA Construction Loan Works
✅ Terms of the loan:
Just like any other loan, there are 15- and 30-year rates available.
✅ Getting that dream house built:
Your builder is paid by the loan administrator. So you don’t have to deal with any of the payments yourself.
All permitting costs and other costs associated with your home’s construction are included in the builder/retailer’s costs covered by the loan. So no worries on your part.
✅ Buying the land:
If you already own your land, or if your land was gifted to you, you can use this loan to build your dream home. But if you don’t already own your land, you can use this loan to cover the costs of purchasing that land — whether you’re buying land from the builder or from a third party.
And unlike other home construction loans, there’s no limit to the acreage you can buy. And there’s no requirement that you own the land for six months [or more] before you can get the loan to build your home.
Why the VA Construction Loan Makes Your Dream Home Affordable
Quite possibly the most important feature of this loan is that you have no mortgage payments to make until your home has been constructed.
Even though the loan is 100% in place prior to starting construction on your dream home, you don’t make a payment until construction is complete. [And, by the way, builders love it because they’re not on the hook for interest payments during construction, either. We’re thinking a happy builder makes a happy dream home.]
Who Qualifies for the VA Construction Loan
✅ You’re going to live in this home.
This dream home is going to be your permanent residence. You’re not building a multi-family home, or building multiple residences on your land.
✅ You have a fair credit score.
While some loans seem to require stellar or near-perfect credit scores, the VA construction loan is open to actual humans. You need a minimum credit score of 620 to qualify [other factors will play into whether you qualify, and for how much, of course].
✅ You have a VA-approved builder signed on to build your home.
You have to have a builder, and that builder must act as your General Contractor, fully responsible for the completion of your home and all site improvements.
You cannot be planning on building that home yourself — or handling any part of the construction or site improvements yourself. That includes hiring sub-contractors, or even being your builder’s employee.
Builders love working with homeowners who’ve qualified for this loan because it’s stable. They know the financing is locked in for the whole project. And the details of the build are secured upfront, so there’s no worry about change orders midway through the build.
The VA construction loan is your road to the American dream. And, coupled with the Texas property tax exemption for disabled vets, owning your dream home might be much closer than you ever imagined.
Topics: Home Loans