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Do you do VA Home Construction Loans?Good credit,property picked out,builder is VA approved,having a hard time finding a lender

by dcporter007614 from Troy, Michigan. Apr 19th 2016 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,571 contributions

VA loans for the final long-term loan and new construction where YOU get the construction loan yourself don't go to well together. The construction loan is a risky loan, and lenders generally want 20% down on the construction loan. When you are looking at zero down VA, it becomes a problem. If you hunt around enough, you may find a lender willing to combine the construction loan with the end VA and not require the typical down payment on the construction loan. Sorry, but just one of the quirks in lending. You may try asking the builder to carry the financing... Had plenty of success myself going that route. For VA loans in MN, WI, and SD, visit me at www.VA-IRRL-Loan-MN.com

Apr 19th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

The VA construction loan is literally the "needle in the haystack" type loan.. I'm not saying it's impossible to find, but it will be near impossible.. As Joe said.. lenders are always analyzing risk vs. reward.. for ZERO down construction loans, they are the most risky loan out there.. a lot can happen in the 6 months to 1 year before you actually start making payments.. you could get sick, injured, and unable to work.. you could lose your job.. or have a spouse pass away.. or the market could drop which would result in your newly constructed home being worth less than what is owed.. All these scenarios have happened to construction loan lenders in the past, which is why during the mortgage crisis, construction loans were all but eliminated.. they are now starting to make a comeback, but finding a VA construction loan.. probably not gonna happen.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Apr 19th 2016
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