Experienced, Proficient VA Construction Loan Experts Supporting Veterans
Security America Mortgage is an experienced and proficient VA construction loan vendor that takes pride in helping veterans build and buy their dream homes. We thank veterans for their service and offer competitive interest rates on VA loans in Florida. VA loans in Florida are guaranteed by the Department Of Veterans Affairs and so do not require a down payment. You should choose Security America Mortgage for your VA loan because of our wide range of experience in helping many veterans to construct and purchase their dream homes. We offer a personalized service, with experts just a phone call away to take you through each step of the VA loan process. We offer a wide range of services, from VA home loans to VA construction loans, and our quality service will help you get the VA loan that’s right for you.What Is VA Loan?
A VA loan is a mortgage loan offered by a United States Department Of Veterans Affairs program. VA loans are available to active service members, national guard members, veterans, and military spouses to help them purchase or build homes without a down payment or private mortgage insurance and competitive interest rates. VA loans can be used to purchase a home, build a home, or fund repairs and maintenance with 100% of the cost financed. VA-approved private lenders offer VA loans. To make VA loans more accessible, applicants are shown more leniency regarding their loan eligibility – regarding their credit score and credit history.Types Of VA Loans
There are varying types of VA loans designed to cater to the individual needs of veterans and their families, whether they are looking to improve and maintain their current home, build a new home, or purchase a home.VA Construction Loan
A VA construction loan is designed to help veterans build their own homes and was introduced to solve the limited availability of housing. VA construction loans cover 100% of the fees included in building a house, from the cost of purchasing the land to the cost of constructing the house. VA construction loan repayments do not need to be made until construction is complete.VA Loan Vs VA Construction Loan
A VA loan covers the purchase of a home, whereas a VA construction loan allows veterans and their families to design and build their own homes. VA construction loans suit the needs of veterans living in areas with a low supply of housing. VA purchase loans are suitable for purchasing a home but do not have the funds for a down payment or a high credit score.VA Purchase Loan
Lenders offer competitive rates on VA-backed purchase loans that can help you to buy a home. This is beneficial to poor credit scores who cannot get a purchase loan through traditional means. VA purchase loans do not require a down payment either, which helps those who do not have the means to access a conventional mortgage.Refinancing VA Loan
If you have an existing VA-backed home loan, an interest rate reduction refinancing loan (IRRRL) can help you make your mortgage payments more manageable and more stable. Refinancing lets you replace your current loan with a new one under different terms to reduce your monthly mortgage payment. You must have lived in or currently live in the home backed by the existing VA loan to qualify for a refinancing VA loan.Energy Efficiency VA Loan
A VA energy efficient mortgage (EEM) allows you to finance home improvements that increase your home’s energy efficiency. You can finance up to $6000 worth of energy-efficient installments in your home using a VA energy efficiency loan, and even more in some cases.VA Loan To Build A House – What is a VA One-Time Close Construction Loan?
VA construction loans are down payment loans available to help veterans build their own homes. VA construction loans are guaranteed by the Department of Veterans Affairs and sanctioned by private lenders. VA construction loans are available to those who meet the VA loan requirements: veterans, active service members, national guard members, and military spouses (in special circumstances). VA construction loans are similar to VA home loans; only they cover both purchasing the land and constructing the home. VA construction loans are short-term loans that do not require any upfront costs, as you expect with a VA home loan. VA construction loans allow you to finance the purchase of land and the costs associated with construction. You can even roll in and finance the closing costs. A VA construction loan offers veterans the chance to qualify for better mortgage terms, and veterans will not be required to make PMI payments. Private mortgage insurance (PMI) is insurance designed to protect the mortgage lender should the borrower not make a payment and is designed for borrowers who do not have the 20% down payment for a home purchase. PMI payments are added to your existing mortgage payments, principal, interest, property tax, homeowners insurance. You do not need to make these payments with a VA construction loan. In addition to being exempt from PMI fees, veterans will be exempt from VA funding fees when they opt for a VA construction loan. VA funding fees areHow Long Does It Take To Close On A VA Construction Loan?
It can take between 30 and 60 days to close on a VA construction loan, but it can take longer (up to a year) in some cases. You will not be required to repay your VA construction loan until you have completed construction and financing is available for the closing costs.Can You Get A VA Loan To Build A Home If You Do Not Own Land?
You can get a VA loan to build a home if you do not own land. The cost of purchasing land can be included in your loan, along with construction costs.VA Construction Loan Guidelines And Requirements
There are specific guidelines and requirements for qualifying for a VA construction loan. To be eligible for a VA construction loan, you will need:- A certificate of eligibility – this can be obtained by submitting your statement of service. Your VA lender can help you with this process.
- A low DTI ratio (40-55%) – your debt to income ratio (DTI ratio) gives lenders an idea of your financial position and how well-equipped you are to take on additional debt.
- A 550+ FICO score – a FICO score is another type of credit score that lenders can use to understand your viability for a loan.
- A property appraisal – you must perform an appraisal to understand the value of the home you are building.
- Construction plans and blueprints – you will need to provide construction plans, and blueprints agreed on with a VA-approved builder.
- You must have a minimum FICO score of 620 for all qualifying borrowers.
- A minimum of 2 credit scores of 620-659 are required for all qualifying borrowers. If three scores are given, the lender will use the middle score. If two scores are given, the lender will use the lower score.
- A minimum of one credit score above 660 is required for all qualifying borrowers.