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VA New Construction To Permanent One-Time Close Mortgages

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VA New Construction To Permanent One-Time Close Mortgages

This BLOG VA New Construction To Permanent One-Time Close Mortgages Was PUBLISHED On March 14th, 2019

VA New Construction To Permanent Guidelines at Gustan Cho Associates at Loan Cabin Inc. now allows home buyers to purchase a VA New Construction home on VA Loans.

  • We will finance the lot, construction costs, and the end financing all in one loan closing
  • Home buyers need to meet VA Guidelines to be eligible
  • VA Loans is the best loan program in the United States
  • The Department of Veterans Affairs has very lenient mortgage guidelines on VA Loans
  • 100% financing with no down payment required
  • Most borrowers do not have to worry about closing costs
  • Closing costs can be covered by either or a combination of sellers concessions and/or lender credit

We will cover our VA New Construction To Permanent One-Time Close Loan Program on this blog.

How Does VA New Construction To Permanent One-Time Close Work?

VA New Construction To Permanent One-Time Close Loan Program is a very unique loan program due to the one-time closing.

  • Most construction loan programs are a two-step mortgage process
  • With the VA New Construction To Permanent One-Time Close, the first step (bridge loan process) is totally eliminated
  • Eliminating the bridge loan process saves borrowers money, time, stress, and red tape

The financing of the lot, construction costs, and end loan are all done at one time prior to the start of construction.

Types Of Homes Eligible For VA New Construction To Permanent One-Time Close Financing

Not all properties qualify for VA New Construction Loans. It needs to be owner-occupant primary residences only. We allow the financing of the proposed lot, construction, and end VA Loan.

Property needs to meet the following eligibility requirements:

  • Stick custom built homes
  • Manufactured homes meeting VA Property Guidelines sitting on a permanent fixed concrete foundation
  • Condominiums do not qualify
  • Multi-unit family homes do not qualify
  • Non-warrantable and condotels do not qualify

Lenders can finance the lot. Or home buyers can own the lot, purchase the lot, or have the lot gifted by family.

Benefits Of VA New Construction To Permanent Loans

With the shortage of home inventory, many pre-approved home buyers are getting priced out of the housing market.

  • Some home buyers are leaving to lower taxed and affordable housing states due to high home prices
  • Now with our VA New Construction To Permanent Loan Program, home buyers can custom build their homes with one closing process

Here are some benefits of the VA New Construction Loan Program:

  • Borrowers are not required to make any interest payments during the home construction process
  • There is only one closing so the initial bridge loan closing is eliminated
  • Borrowers do not have to qualify for a bridge construction loan and a second final loan
  • The mortgage process is streamlined with one closing so it saves time, money, red tape with only one appraisal required

Eligibility Requirements And Guidelines

There are certain stipulations on Construction To Permanent Loans:

  • VA does not have a minimum credit score requirements but this loan program requires a 620 credit score
  • No down payment required with 100% financing
  • The maximum loan amount is per VA loan limits
  • Debt to income ratios is determined by automated findings
  • VA does not have any debt to income ratio caps
  • Manual Underwriting is allowed

Once the borrower is qualified, the borrower’s file goes through the processing and underwriting process. Once borrowers meets all VA Guidelines and is approved, the construction and home building process starts. VA New Construction To Permanent Loans are closed prior to start of construction. The mortgage company, title company, buyers, and builders all coordinate the project. The process is streamlined to avoid any stress during the mortgage process. Home buyers who are interested in qualify for VA New Construction To Permanent Loans with a one-time close, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on VA Home Loans. We only go by automated underwriting system findings. Zero overlays. We do not require any minimum credit score requirements nor have a maximum debt to income ratio cap on all VA Loans. The Gustan Cho Team at Loan Cabin Inc. are also experts in nonqm loans and alternative financing. 

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