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Va home construction in alabama

by jomech67382 from , California. Oct 5th 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,488 contributions

More info needed.. Are you looking to buy a "Tract" home in a new home subdivision, or are you looking to buy a lot and have a custom home built.. If you are looking at tract homes, then typically, the builder requires a $1000 to $5000 deposit and 6 to 9 months later, you close on your new home.. and you would receive your deposit back since VA is 100% financing.. But if you are looking to build a custom home, then you need to understand that of all the loan products available, the VA construction loan is the hardest to find.. in fact, it's near impossible.. Most people don't really understand VA's role in mortgage finance.. VA does not lend money.. they only insure loans against default.. the lenders, or those with the $$$ will oftentimes add their own rules above what VA calls for, and it's these "Overlay's" that makes lending rules different, one lender to the other.. and for most, they don't do VA construction loans.. This all being said, if you already own a lot, then you can get a construction loan through a local bank and then once the home is built, you can use your VA benefits to close.. This is assuming that your lot represents at least 20% of the home's completed value.. Obviously, there's a lot more info needed to advise you.. so you might want to try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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

Oct 5th 2016
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Larry Gray (lgray_312_247)
#1 ranked lender in California - 984 contributions

William Acres gives good advice! I would simply add that typically people get a construction loan that converts to a fixed loan upon completion, or they have their own fixed loan ready upon completion, to complete. Construction loans tend to be higher rates and for a temporary purpose. Having used a VA loan myself as well as providing VA insured loan. I agree it is near impossible to find a VA construction loan as neither I nor many of my colleagues in lending have found one. Banks just do not offer them. There may be the rare lender out there that does but if they were known to be a good source nationally among lenders to refer, I think we would have heard of them!

Oct 6th 2016
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