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Construction loan converted to a VA?

Does anyone know if it is possible to get a new construction loan and have it close in a VA loan instead of a FHA?
Would like to use VA benefits, plus put as little down as possible
Thank you
  • May 05 2014 - Salinas
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Answers (6)

There are VA construction to permanent programs that are available depending on your lender.  I know a company has rolled out a VA one time close loan program but is only good for manufactured and modular home financing and not for stick built. 
  • May 06 2014
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Permanent financing can be done with whatever type of loan you want, but construction financing is different and depends on whether you are buying a house that is already built, or if you are trying to build one yourself. There aren't any construction type loans without money down, but if you are just looking for permanent financing and the house is already built. You can qualify for zero money down depending on your eligibility. Feel free to contact me if you have any more questions, I would love to help you out.

Thank you for your service!
  • May 05 2014
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Is the house already being built or is it to be built?
  • May 05 2014
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We are able to accomplish your goals here at my bank.  Give me a call and I can explain.
  • May 05 2014
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What type of home are you building? Ground up stick & frame? On existing foundation? Modular?   Or are you getting a FHA 203(k) rehab loan?  Either case, you would have to close on either the new construction loan or FHA 203(k) loan and then later you can refinace into the VA loan.  You would want to weigh the pros and cons of refinancing ie. new lower monthly payment vs another set of closing costs with the refinance.  Long-term it would make sense to refinance into the VA loan (even with a new set of closing costs).  VA loans have lower rates than conventional loans and they have no monthly mortgage insurance.  And compared to FHA, rates are typically the same as VA, but you get rid of the expensive FHA monthly mortgage insurance which is for the life of the loan. 

If the builder would be financing the construction to build then you can get a VA purchase loan when the home is finished and the Certificate of Occupancy is given.  

 

  • May 05 2014
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Do you mean new construction as you need to finance the construction costs? (i.e. you have a lot and are building on it)  Or do you mean you are buying a newly constructed home from a builder?
  • May 05 2014
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