Are you a U.S. Veteran or an active-duty service member looking to build your own home? If so, your journey to building your dream home starts here with Greenway’s VA One-Time Close Construction Loan. This one-time close construction loan provides Veterans with a simple and affordable way to finance the perfect home all with just one application and one closing.
The Lowdown on the VA One-Time Close Construction Loan…
The U.S. Department of Veterans Affairs (VA) has loan options designed to help veterans make their dream home a reality. VA loans are issued by private lenders, like Greenway Mortgage, but backed by the VA. VA Construction Loans can help qualified Veterans finance the purchase of land and the construction of a brand-new home, all without the need for a down payment.
It may be the perfect time for you to use your VA Home Loan benefits, especially now when housing inventory is at its lowest! There’s certainly no reason to wait for your perfect home to become available on the market when we can offer you the VA One-Time Close Construction Loan.
Keep reading to learn more and to see if you qualify.
What are the Program Details for the VA One-Time Close Construction Loan?
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1 time close
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Owner Occupied (1 unit); 100% LTV
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0% down required, depending on loan size*
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680 min credit score
*Finance up to 90% of the project (purchase price + cost to construct). Eligibility requirements, exclusions, and other terms and conditions apply.
What are the Benefits of a VA One-Time Close Construction Loan?
Some key benefits include:
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Consolidate construction and purchase price for only 1 set of closing costs and fees.
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Purchase a tear down property.
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If you already own an empty property and want to build a home, tear down, and put up a new one, or do a major renovation on an existing home.
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Pay just interest-only payments during construction.
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Avoid requalification post-construction.
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Simple & flexible draw process with no set schedule.
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Use qualified licensed builder of your choice (self-build not allowed)
What are the Alternatives to a VA One-Time Close Construction Loan?
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USDA One-Time Close Construction Loan: meant for low to moderate income families who live in rural areas and also does not require borrowers to put any money down. Click here to learn more about the USDA Construction Loan.
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FHA One-Time Close Construction Loan: this is another option for borrowers who might not have any ties to the military. Click here to learn more about the FHA Construction Loan.
Bottom Line
If you’re looking for a VA Construction Loan, then you’ve come to the right mortgage lender. We are proud to provide veterans and active-duty military members with financing to build the home of their dreams. Our Loan Experts will work with you from day one to ensure a smooth process. Let’s build the home of your dreams together!
How Do Construction Loans work, you might ask?
Overall Process:
- Builder Approval
- Project Approval (appraisal, plans & specs, costs from builder)
- Borrower Credit Approval
- Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased
Construction Period
- Post close welcome call from the construction management company
- Inspections are done as work is put in place, then checks for draws issued to builder and borrower
- Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loan in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.
Specialized Features
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Stalled projects
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Modular construction
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Major renovations (projects beyond scope of renovation programs)
Remember, Choosing an Experienced Lender is Critical
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.
