VA - Home Loan - Construction

Program Description

VA guarantees a percentage of the loan. This helps the veteran obtain a no-down payment mortgage at a competitive interest rate.

General Program Requirements

Persons who may qualify for VA guaranteed loans include

Loan Terms
A loan to finance the construction/purchase of a residence is closed prior to the start of construction with proceeds disbursed to cover the cost of, or balance owed on, the land, and the balance into escrow. The escrowed monies are paid out to the builder during construction.

A veteran begins making payments on a construction/permanent home loan only after construction is complete. So, if the home takes six months to complete construction, the payment schedule for the veteran obtaining a 30-year mortgage must provide for full repayment of the loan in 29 years and six months.

On a construction/permanent home loan, the builder is responsible for:

Application Process
For more information, see the Program Contact Information below.

Contact Information (Register above for free access!)

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