Many people are familiar with the benefits associated with VA home loans, such as no down payments and lower interest rates. But there is one home financing product with which many veterans are unfamiliar: The VA construction loan.
On this new blog, we will discusses the various benefits of VA construction loans, how to obtain VA construction loans and highlight builders and contractors who specialize in VA construction funding.
What is a VA construction loan?
A VA construction loan is a home loan that is used to finance the construction of a new home. Construction loans are different from traditional loans because the lender pays draws to the builder or contractor while the home is under construction. Repayment terms do not kick in until the construction is finalized.
The U.S. Department of Veteran Affairs allows veterans and active duty military members to use their VA home loan entitlement on new construction homes. However, finding a lender willing to lend VA construction loans can be difficult.
That is where Mortgages for America comes in. We specialize is VA mortgages of any type, including construction loans. While many lenders shy away from VA construction loans, we don’t.
How to get a VA construction loan
First things first, just as with a standard VA mortgage, to get a VA construction loan you will have to obtain a certificate of eligibility (COE) from the VA. Then you will need to track down a lender that provides VA construction loans, like us.
Since construction loans tend to be riskier, we are one of the few VA-approved lenders who offer VA construction loans.
For more information on VA construction loans, contact us today, or check back to this blog often for insider tips and tricks to obtaining VA construction financing.