Building your own home can be complicated and financing the construction can seem nearly impossible, especially for active duty military and veterans. But the home of your dreams can be much more than just a dream with the new and improved VA new construction home loans offered through Mortgages for America.
We’re experts in helping veterans finance their American dream, and new construction loans are no different.
These 1-time close new construction home loans allow veterans to use their VA entitlement to finance a brand new home with as little as $0 down.
Many lenders shy away from new construction home loans, especially for veterans, because of the high amount of risk associated with these loans and the housing market’s shaky past. But Mortgages for America is different. We’re doing our part to help veterans get into homes.
How do new construction home loans work?
First step is to Apply at www.mortgagesforamerica.org under Apply Now. We then pre-approve you so you can begin shopping for land and speaking to builders. Once we have the land purchase agreement and the build estimate then we begin the process. The entire process takes aprox. 60-90 days to close and then your builder can begin construction. They normally will receive 5-6 draws throughout the construction process.
Construction to permanent financing
In order to use your VA benefit, you’ll need what’s called a “construction-to-permanent” mortgage. With this type of loan, it starts out as a construction loan, but turns into a permanent mortgage once the home is complete. For comparison, many conventional construction loans are short term and must be paid off or refinanced once the home is built.
Contact Mortgages for America today or visit www.vaconstructionloans.org for more information.
Sources:
http://www.bankrate.com/finance/real-estate/how-do-home-construction-loans-work.aspx
http://www.military.com/money/va-loans/va-lending-and-construction-loans.html
