In this blog, we will cover and discuss VA New Construction to Permanent One-Time Close Mortgages. VA New Construction To Permanent Guidelines at Gustan Cho Associates empowered by NEXA Mortgage, LLC 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. Homebuyers need to meet VA Guidelines to be eligible.

Benefits of VA Loans

VA loans are 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 a combination of seller 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 is 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 of VA loan.

VA New Construction Morgage Guidelines

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

Benefits of VA New Construction Loans

There are dozens of benefits of the VA New Construction Loan Program during today’s booming housing market. 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 on VA New Construction Mortgages

There are certain stipulations on Construction To Permanent Loans. VA does not have a minimum credit score requirement but this loan program requires a 620 credit score. No down payment is 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 on VA New Construction Loans

Once the borrower is qualified, the borrower’s file goes through the processing and underwriting process. Once borrowers meet all VA Guidelines and are approved, the construction and home building process starts. VA New Construction To Permanent Loans is closed prior to the 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.

Qualify and Get Approved Today for VA New Construction to Permanent Loans With a One-Time Close

Home buyers who are interested in qualifying for VA New Construction To Permanent Loans with a one-time close, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, on evenings, weekends, and holidays. Gustan Cho Associates empowered by NEXA Mortgage, LLC is a mortgage broker licensed in 48 states with over 160 wholesale mortgage lenders. Most of our wholesale VA lenders have no lender overlays on VA 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 team at Gustan Cho Associates are also experts in non-QM loans and alternative financing.