Commonly, it’s more difficult to get a construction loan than an existing home loan, as lenders are more cautious funding a home that doesn’t exist yet. One of the main differences in building your own costume home instead of purchasing, is the process: a VA construction loan is usually short-term– around 12 months to get you through the building stage. The builder will draw money from the lender in increments, and you will make monthly loan payments, keeping in mind they’re only interest payments. When your house is finished, you stop paying the construction loan and roll over to monthly mortgage payments, which is whatever’s left on the construction loan balance. VA Construction loans are for firstime homebuyers looking for an affordable option from the lack of offers on the market. But to make sure which product is the right one for you and to learn how Security America Mortgage can make this process easy for you, contact your VA Loan expert to discuss their differences.
