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Is there any lenders out there that will give a VA loan on a new construction?

by raybell21141 from Delano, Tennessee. Mar 23rd 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

That is one of the most difficult loan products to find.. It's not impossible, but really close to impossible.. your asking a lender to commit to lending you $200K-$600K and wait 9 months to a year before you even start making payments.. all the while, the market is going up and down, and over that period of time, a lot can happen.. RE values decline.. you lose your job, you get injured and cannot work, your credit score goes below the lenders acceptable limit, etc, etc, etc.. This is just too risky for nearly every mortgage lender in the US, and for that reason, most all wont even consider it.. You might have better luck going to a local community bank, applying for a construction loan.. put 20% to 30% down, and then when the home is finished, use your VA benefits to obtain a 100% loan.. you then would receive your cash back.. but a straight up VA construction loan.. probably not going to 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 NMLS# 226347

Mar 23rd 2016
Nancy J Releford (nancyreleford)
#1 ranked lender in Tennessee - 228 contributions

I do a good number of VA loans here in TN. I have no VA lenders that will do a VA construction. I agree with William, I would go to a local bank or even a credit union like Ascend. Even though I own a mortgage company here in TN, when I built my home I used Ascend federal credit union for the construction loan because they had the best terms around & then when construction was completed converted it to a conventional loan through one of my lenders. Good luck if you need anymore information please feel free to contact me.

Mar 24th 2016
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