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VA construction loans are dedicated to the veterans and allowing them the opportunity to build their own home. This loan is unique in many aspects. The most striking benefit is that under this program our veterans can build their dream home with no money down and in most cases even roll in all the closing costs. This loan is underwritten as a VA loan and therefore is a one-time close loan. No need to refinance once the construction is finished, it is already a VA loan. Veterans also do not need to come up with the typical 20-25% down payment for a traditional construction loan.

 Qualifications required for applying for a VA construction loan:

• All regular VA loan guidelines are followed.
• Construction must be carried out by a licensed VA approved builder and cannot be completed by the veteran.
• The home must be primary residence. No investment properties allowed.
• Credit score required for this loan is 620.

 Steps to getting a VA Mortgage Loan:

Construction Loans for veterans involve certain steps. It is easier to ask for a private lender services for the whole process as they guide and explain everything to applicants. The following steps include for the complete process of applying mortgage loan:
• Certificate of eligibility:This certificate is issued by the VA. Your VA loan specialist will obtain this on your behalf once you have started the loan prequalification process.
• Prequalification:
A full application is taken where credit is checked, your COE (certificate of eligibility) is ordered, income details and information of assets is verified along with proof of identification with copies of drivers license and a copy of your DD214. Some other items may be required. To start the application process click on the apply online button bellow.

• Builder Certification:
Builder is asked to fill out a simple form in order to register with our construction department and get approved as a VA approved builder. Credit check and references are part of this approval process. Builder also to provide detailed construction plans including list of materials used for a turn-key move in ready home. Any septic and wells must be included in the plans.
• Underwriting:
Once the veteran and builder have been pre-qualified and the construction plans have been finalized and submitted the file will go into underwriting. Once in underwriting a VA appraisal will be ordered to calculate the value of the home once it is completed. The underwriter will verify all of the application documents to make sure that what has been submitted follows VA guidelines.
• Closing:
VA Construction loan is one time close loan. Once we close funds are made available to start construction. The average construction period is 5 months and has 5 draws. This can be adjusted to suit your builders timeline. When construction is finished there is no need to refinance into a VA loan since the loan is already a VA loan. During the construction period the veteran will not have to make any interim construction interest payments as those payments. Your first payment will not be due until your construction project is complete.
• ***Special note: All VA loans carry a VA funding fee. In the event the veteran has a service related disability rating the VA will waive the VA funding fee. ***

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