25 Feb VA Construction Loan: What You Should Know
A VA Home Loan for qualifying service members, veterans, and qualifying surviving spouses who want to purchase, refinance, or need a VA loan to build a house. Many people aren’t aware that you can apply to build a home from the ground up using a as a VA Construction Loan.
AVA Construction Loan is considered by many lenders a higher risk investment, so it is important to shop around for a participating VAender to find the best option for you.
Financing for the VA Construction Loan
Your VA loan to build a house must be approved before construction may begin when using VA Construction Loans. Loan funds are kept in escrow during the construction phase of the project and disbursed to purchase materials, pay contractors, etc. At no time is the borrower permitted unrestricted access or use of these loan funds–they can only be used for approved payments on the construction project and other mortgage-related needs.
Here is some more advice regarding VA Construction Loans:
- You will need a VA Certificate of Eligibility(COE) from the VA to qualify
- Inquire with several lenders in your area, including your own bank or credit union
- Look for VA Construction Loan lenders online. Shop for several quotes and pick the best one. The VA Loan specialists in our network can help you find multiple quotes in just minutes
- Manufactured homes or modular housing re classified as real estate may qualify depending on circumstances.
Looking over the VA Home Construction Loan’s minimum property requirements
The VA requires that minimum requirements are met during the construction of any home build by financing through a VA home mortgage. The home must meet minimum property standards for safety and livability.
This is required to ensure builders are following all local regulations for building codes and that the property complies with all federal regulations, which include regulations for HUD. This can includ inspections, compliance inspections, and other measures that may be required by state government, federal law, or lender standards.per VA regulations, to make sure all property requirement minimums, along with additional criteria, are being met and respected.Why are these standards in place?
The VA states that all minimum property requirements are in place to shield the borrower and ensure the home is safe and the VA home builder is following proper construction standards. It also ensures your home’s condition and value will be comparable to other houses in the area.
Exploring Specially Adaptive Housing with your loan
In addition to using your VA Construction Loan as a VA Home Loan to build a house, you may also qualify for VA Specially Adaptive Housing (SAH) grants. If you’d like to learn more about this possibility, local VA Loan Center.
Talk with one of the qualified VA Loan and VA Construction Loan lenders in our network to begin your journey to use a VA loan to build a house today. Remember, VA construction loans loans are not funded by the VA but by private lenders. It is always advised to get multiple quotes from both VA lenders and VA home builders to ensure you get the most competitiveinterest rates, the best terms, and the right builder for your needs.