VA Loans New Build vs Existing Home

VA​ ​Loans:​ ​New​ ​Build​ ​vs​ ​Existing​ ​Home

VA​ ​loans​ ​are​ ​not​ ​limited​ ​to​ ​purchasing​ ​existing​ ​single-family​ ​homes;​ ​VA​ ​entitlements​ ​and​ ​loan guarantees​ ​can​ ​also​ ​be​ ​used​ ​for​ ​other​ ​purposes​ ​such​ ​as​ ​purchasing​ ​condos,​ ​refinancing

existing​ ​mortgages,​ ​making​ ​residential​ ​improvements,​ ​and​ ​financing​ ​new​ ​construction​ ​projects.

Building​ ​a​ ​new​ ​home​ ​can​ ​be​ ​a​ ​very​ ​appealing​ ​option​ ​for​ ​veterans​ ​who​ ​would​ ​like​ ​to​ ​have​ ​more control​ ​over​ ​their​ ​choice​ ​of​ ​housing;​ ​to​ ​this​ ​effect,​ ​VA​ ​loans​ ​can​ ​be​ ​used​ ​for​ ​spec​ ​homes,

custom-built​ ​residences​ ​or​ ​even​ ​new​ ​construction​ ​projects​ ​in​ ​gated​ ​communities.​ ​The​ ​no-money down​ ​and​ ​loan​ ​guarantees​ ​offered​ ​by​ ​the​ ​VA​ ​apply​ ​to​ ​new​ ​construction,​ ​but​ ​not​ ​all​ ​lenders​ ​will work​ ​with​ ​veteran​ ​borrowers​ ​in​ ​this​ ​regard.

One​ ​problem​ ​with​ ​VA​ ​loans​ ​and​ ​new​ ​construction​ ​projects​ ​is​ ​that​ ​home​ ​builders​ ​tend​ ​to​ ​demand money​ ​upfront.​ ​A​ ​few​ ​builders​ ​familiar​ ​with​ ​the​ ​VA​ ​loan​ ​program​ ​will​ ​work​ ​with​ ​veterans​ ​and active​ ​duty​ ​families​ ​who​ ​wish​ ​to​ ​build​ ​a​ ​new​ ​home;​ ​this​ ​is​ ​when​ ​well-connected​ ​mortgage brokers​ ​and​ ​lenders​ ​have​ ​an​ ​opportunity​ ​to​ ​shine​ ​if​ ​they​ ​have​ ​a​ ​working​ ​relationship​ ​with builders​ ​who​ ​understand​ ​that​ ​VA​ ​loans​ ​forego​ ​down​ ​payments.

There​ ​are​ ​options​ ​to​ ​process​ ​what​ ​is​ ​known​ ​as​ ​a​ ​"true"​ ​VA​ ​construction​ ​loan,​ ​which​ ​involves drawing​ ​funds​ ​from​ ​the​ ​mortgage​ ​principal​ ​and​ ​making​ ​payments​ ​to​ ​the​ ​builder​ ​as​ ​the

construction​ ​advances.​ ​Another​ ​method​ ​involves​ ​approving​ ​veteran​ ​borrowers​ ​for​ ​short-term

construction​ ​loans​ ​that​ ​will​ ​transform​ ​into​ ​full​ ​VA​ ​loans​ ​once​ ​the​ ​project​ ​is​ ​completed​ ​and​ ​papers are​ ​signed​ ​at​ ​the​ ​closing​ ​table.

VA​ ​loans​ ​for​ ​construction​ ​projects​ ​must​ ​satisfy​ ​all​ ​the​ ​requirements​ ​of​ ​non-construction​ ​loans; this​ ​means​ ​that​ ​they​ ​will​ ​need​ ​VA​ ​appraisals,​ ​special​ ​processing​ ​and​ ​certificate​ ​of​ ​eligibility.

Additionally,​ ​the​ ​builder​ ​must​ ​submit​ ​a​ ​certificate​ ​of​ ​completion​ ​and​ ​a​ ​construction​ ​warranty​ ​of​ ​at least​ ​one​ ​year.

The​ ​process​ ​of​ ​purchasing​ ​an​ ​existing​ ​home​ ​with​ ​a​ ​VA​ ​loans​ ​is​ ​a​ ​lot​ ​more​ ​streamlined​ ​and

traditional.​ ​The​ ​same​ ​VA​ ​lending​ ​standards​ ​will​ ​apply,​ ​but​ ​applicants​ ​do​ ​not​ ​have​ ​to​ ​worry​ ​about issues​ ​such​ ​as​ ​short-term​ ​construction​ ​financing.

Veterans​ ​who​ ​prefer​ ​to​ ​purchase​ ​newly​ ​built​ ​residences​ ​may​ ​be​ ​better​ ​off​ ​by​ ​looking​ ​into

residential​ ​communities​ ​being​ ​developed​ ​by​ ​local​ ​or​ ​national​ ​builders.​ ​The​ ​options​ ​in​ ​this​ ​case may​ ​include​ ​purchasing​ ​model​ ​homes​ ​or​ ​waiting​ ​until​ ​a​ ​new​ ​phase​ ​or​ ​section​ ​of​ ​the

neighborhood​ ​is​ ​completed;​ ​this​ ​will​ ​require​ ​working​ ​closely​ ​with​ ​real​ ​estate​ ​professionals​ ​and VA​ ​lenders​ ​so​ ​that​ ​the​ ​purchase​ ​contract​ ​can​ ​be​ ​signed​ ​quickly​ ​to​ ​avoid​ ​other​ ​prospective buyers​ ​from​ ​submitting​ ​competing​ ​bids.

In​ ​active​ ​housing​ ​markets​ ​such​ ​as​ ​Phoenix,​ ​veterans​ ​have​ ​more​ ​choices​ ​for​ ​purchasing​ ​new construction​ ​homes​ ​due​ ​to​ ​the​ ​rapid​ ​pace​ ​of​ ​development​ ​in​ ​the​ ​region.​ ​Quite​ ​a​ ​few

master-planned​ ​developments​ ​and​ ​gated​ ​communities​ ​with​ ​neat​ ​amenities​ ​such​ ​as​ ​nature

preserves,​ ​swimming​ ​pools,​ ​fitness​ ​centers,​ ​and​ ​playgrounds​ ​are​ ​being​ ​completed​ ​in​ ​2017.

These​ ​new​ ​developments​ ​are​ ​great​ ​opportunities​ ​for​ ​veterans​ ​who​ ​wish​ ​to​ ​move​ ​into​ ​new

homes​ ​without​ ​having​ ​to​ ​go​ ​through​ ​the​ ​VA​ ​loan​ ​construction​ ​process.​ ​In​ ​fact,​ ​these​ ​homes​ ​can be​ ​combined​ ​with​ ​the​ ​Home​ ​in​ ​5​ ​Program,​ ​which​ ​is​ ​partly​ ​managed​ ​by​ ​the​ ​Industrial

Development​ ​Authority​ ​of​ ​the​ ​Maricopa​ ​County;​ ​this​ ​program​ ​can​ ​significantly​ ​reduce out-pocket-expenses​ ​associated​ ​with​ ​new​ ​home​ ​purchases.

In​ ​the​ ​end,​ ​veterans​ ​should​ ​not​ ​be​ ​afraid​ ​to​ ​ask​ ​lenders​ ​about​ ​using​ ​VA​ ​loans​ ​to​ ​fund​ ​their​ ​new construction​ ​dream​ ​projects;​ ​however,​ ​they​ ​should​ ​also​ ​keep​ ​in​ ​mind​ ​that​ ​new​ ​homes​ ​can​ ​also purchased​ ​through​ ​traditional​ ​VA​ ​loan​ ​means.

Resource: Mortgage​ ​Originator​ ​Jimmy​ ​Vercellino,​ ​specializing​ ​in​ V ​ A​ ​Loans​,​ ​helps​ ​veterans​ ​use their​ ​VA​ ​loan​ ​benefit​ ​to​ ​their​ ​greatest​ ​advantage.​ ​For​ ​more​ ​details​ ​call​ ​us​ ​at

480-351-5904.​ ​Visit​ ​site:​​ ​https://www.valoansforvets.com/va-pre-loan-faq/ The​ ​views​ ​expressed​ ​here​ ​are​ ​those​ ​of​ ​the​ ​individual​ ​author​ ​and​ ​do​ ​not​ ​necessarily represent​ ​those​ ​of​ ​First​ ​Choice​ ​Bank​ ​(NMLS​ ​#:​ ​177877)​ ​and​ ​First​ ​Choice​ ​Loan

Services​ ​Inc.​ ​(NMLS​ ​#:​ ​210764),​ ​7600​ ​E.​ ​Doubletree​ ​Ranch​ ​Road,​ ​Scottsdale​ ​AZ 85258.​ ​Equal​ ​Housing​ ​Lender.​ ​www.fcloans.com/disclaimer/ www.fcbhomeloans.com/privacy

Link:​​ ​https://www.valoansforvets.com/va-pre-loan-faq/