Construction loans can be difficult to navigate. Homeowners and their contractors are expected to adhere to tight deadlines and make sure everything goes as planned in order for the contractor to get paid. Since the lender controls the purse strings with a construction loan, there’s no room for error.
When you add the Department of Veterans Affairs into the mix, there’s an entirely new layer of bureaucracy to navigate. From choosing a VA registered contractor to meeting the VA’s minimum requirements, it’s important to know what you’re doing. Here are three tips to help you close your VA Construction loan.
- Find a Knowledgeable Lender: Finding a lender that knows the intricacies of construction lending and the VA is integral to success. At Mortgages for America, our VA and construction loan specialists will not only help you navigate the process, but will help ensure you meet all the important deadlines and your construction process stays on track. Even the slightest hiccup can delay finalizing the construction – and payment – on your new homes by weeks, if not months.
- Be Prepared: Know what you want and has detailed architectural blueprints drawn up before you even speak to a lender. According to the VA, “The borrower and the builder must submit a complete set of plans and specs for the home when applying. Additional forms will be sent to the builder to describe the specific materials to be used and the lot and surrounding area of the future home site.”
- Research Builders: Since builders take on more risk with a VA construction loan than with a conventional construction loan, it can be difficult to find a reliable contractor. Make sure to research contractors in your area thoroughly and have them speak to your lender early in the process to ensure everyone is on the same page. If you need a contractor recommendation, we have a list of trusted contractors that are familiar with the VA construction loan process.
For more information on VA construction loans, or to speak with a VA construction loan specialist, contact us today at (888) 320-7888.