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?
- 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
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