VA Construction Loan

Veteran homebuyers now have a way to finance a new construction project with a VA insured loan.

Veteran Home Loans Rates for 7/03/2009
30 Year Fixed ----------------- 0.000 points 5.500% 5.610% APR		15 Year Fixed ----------------- 0.000 points 5.500% 5.686% APR

Frequent Question # 33:
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"Farm Loan"? - Can I buy a farm with a VA loan?
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A veteran generally cannot get a VA loan to purchase a farm with one notable exception. If the farm has a residence where the veteran intends to live. There is no 'farming requirement' for this kind of purchase, but if the veteran does intend to operate a farm business as a major source of income for loan qualification purposes, it's required to show that the business can turn a profit. There are other options available to veterans who wish to operate a farm. The Farmers Home Administration does show preference to veterans, and can be used as a way to finance veteran-owned farm operations. -- -- -- -- -- -- -- --

>> VA Loan Testimonials

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Get Started With Your VA Loan

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Homebuyers and the VA Construction Loan

Since VA loans require no down payment and have a high loan to value, banks or lending institutions are not willing to approve interim home construction loans directly to veterans. The process of purchasing land and / or building a home is a difficult one utilizing the VA process. If you are going through a builder, then they will usually want to provide the financing for you with two loans. If not, we will briefly explain the process. You would have to go to an interim lender such as a bank or Credit union. They would need to give you a bridge loan for the land and / or new home construction which usually comes in stages.

Once the home is built and all inspections complete, then you would get approved by a take out lender utilizing the VA program. At that time, you could utilize www.valoans.com or another lender for the take out loan. The lender pays off the bank or credit union that originally lent you the money and creates one new VA mortgage for the Veteran. Since the interim lender can originate loans and will want to make additional money on another loan, they will usually try to give you some added incentive in order for you to give them the take out loan. If this is the type of loan you want, we suggest you research what available options you have and make an informed decision.

While we are not aware of any "VA Construction Lenders" currently offering this product, we recommend that you ask your builder for options.

Get Started With Your VA Loan

* Property Location:
* Loan Purpose:
* Loan Amount: