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I have a piece of property but it will require some demolition on the parcel.Does VA cover the cost of demolition/site prep?

by william.brown12967 from Washington, District Of Columbia. Jun 14th 2016 Reply


Ron Schwartz (RonSchwartz)
#70 ranked lender in Maryland - 56 contributions

Hi William,VA does not, to the best of my knowledge, accommodate renovation financing. There are, however , several alternatives such as the Conventional HomeStyle renovation loan or the two flavors of FHA 203k renovation lending both of which could cover some demolition as part of the overall project budget.If the Demolition work fit into a project less than $6,500 our company might be able to offer another unique alternative, that being a Repair Set-Aside if the project fits within very strict parameters.I'd be happy to discuss this via phone at 301-921-0070 Ext. 3817

Jun 14th 2016
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Joyce Ettingoff (speedlad)
#35 ranked lender in Maryland - 63 contributions

I do not believe so. You would need a different type of loan before you could use VA. We are licensed in DC so give me a call. Joyce Ettingoff 301 915 5644

Jun 14th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

More info needed, but from what I'm gathering.. your looking to do a VA construction loan on a lot you already own, and want to know if lot prep is included in construction costs/loan.. If this is your question, then VA does have a construction loan available, and lot prep would be allowed/included, however VA does not do financing.. they only insure loans against default.. those lenders that actually lend the money can add additional guidelines above what VA calls for.. it's these "overlays" that makes lending rules different, one lender from another.. and for most.. they do not do VA construction loans.. in fact, the VA construction loan is literally the most difficult loan product to find since builders don't like putting up 100%, and lenders don't like being exposed to 100% until the loan actually closes.. However, since you already own the lot, and if that lot is free-n-clear, or you have sufficient equity, then you can apply for a construction loan through a local bank.. your paid for lot should have sufficient equity to meet the loan to value or minimum down payment necessary to obtain a construction loan. 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

Jun 14th 2016
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