Need a Lender that does VA Construction Loans

[Anonymous]

Does anyone know of a Lender that will do a VA construction loan?

[kc0039]

As in a pure VA construction? Land acquisition plus build with a one-time close?

[Anonymous]

Yes, we have the land and want to build on it.

[kc0039]

PM'ed you

[Anonymous]

Thanks!!

[armywifelong03]

I know this is an old thread, but wanted to see if you had any luck? We are on the same journey!

[Anonymous]

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@armywifelong03 wrote:
I know this is an old thread, but wanted to see if you had any luck? We are on the same journey!

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Sorry!  Haven't been on here in a LONG time.  Unfortunately, after submitting all the paperwork and thinking everything was good to go, we just learned that the Lender is now no longer going to be doing new construction loans.  Something about them establishing a separate entity underwhich to resume that function in the future, blah, blah, blah.  So, we are now back at square one.  Just curious to know if you've had any success with your efforts.

[armywifelong03]

No worries! We ended up just going the traditional, two time close route. We closed in September and, when the house is done, will roll the construction loan into a VA loan.

We had a hard time finding a builder would agree to the VA terms up front.

[Anonymous]

Hi armywifelong03 - I've heard the VA one time close construction loans are taboo, no one wants to deal with them. If you don't mind, with your traditional loan, did you have to put down a high percentage? I'm seeing people say 20-25% which is very high (whole reason why I was looking at the VA router). Congrats on your build and best of luck!

[ShanetheMortgageMan]

Typically conventional 1x close construction loans can be done with as little as 10% down, although I've heard from various people they've been able to find them through local banks with as little as 5% down.

VA 1x close construction loans are definitely still around, doing 100% financing, and can even finance closing costs into them as well.  Keep in mind the VA contruction loans have higher rates than regular VA mortgages, but if no other options to build a home then it's not too bad of a deal.