VA New Construction Loan - VA One Time Close Construction Loan

 

Veterans sometimes wonder, does a VA home loan for new construction really exist? Where can I find a lender who will help with all the details of construction and a VA loan? The answer is YES, the VA does provide its VA Guarantee for this type of home loan, and SoCal VA homes is the advocate that you need (who will tell you the truth about this VA loan!

• Construction Loans for Veterans
• Zero Down
• Zero Closing
• Buy your lot and land
• Build your ideal home
• Manufactured Homes / Modular Homes OK
• Take advantage of your VA benefits

How to Use a VA Home Loan for New Construction

Are you wondering how the heck Veterans get a VA construction loan to build a new house in Southern California? Can it really be done? The first step is to find a lender willing to fund VA home construction loans. This can sometimes be difficult. Many lenders are hesitant to deal with the upfront costs of construction. They worry about foreclosing on an incomplete project part way through construction. Lenders are also concerned about the accuracy of the home appraisal done in the beginning of the process, the appraisal done prior to loan approval.

They worry about whether the actual property value of the constructed home will be the same as the initial appraisal. Because many lenders perceive bundling new construction loans with permanent VA loans as risky, they will opt to offer a traditional construction loan, requiring a large down payment or equity in the land. They will fund a short-term loan for the construction only. In this scenario, once the house is built, the borrower can then refinance, exchanging the construction loan for a long-term VA home loan. This isn't ideal if you don't have the down payment!

However, not all lenders see this as the only viable solution! SoCal VA Homes provides a Construction-to-Permanent loan in one single closing. This is much easier for the borrower! SoCal VA Homes exists to make things as easy as possible for the VA homebuyer, although completing a VA construction loan is not considered an easy feat!

Some lenders will consider a VA home construction loan with a requirement that the buyer put money down. This goes against one of the best benefits of VA home loans! A VA home loan does not typically require a down payment. SoCal VA Homes wants to make things as easy as possible for you, and we do not require money down in the beginning as other lenders might for construction loans.

Finally, once you get the financing squared away, you will need to work with a builder who approved by the lender AND has a valid VA builder ID. You will also need a VA appraisal and final inspection for your new home.

New Home Construction & Employment in California

In a survey by the Associated General Contractors of America from 2018, eighty-three percent of query respondents in California indicated they planned to expand the number of hourly workers in their company, anticipating increased construction projects for the following year. Seventy percent of respondents from California planned to hire more salaried field personnel and fifty-eight percent planned to hire salaried office personnel. This indicates very positive feelings about real estate broadly and home construction more specifically.

The state government in California has made housing availability and affordability a top priority, recognizing that the state is in drastic need of new housing. For many years, California has added jobs faster than homes have been built. That this situation needs to be balanced is understood at the state and city levels. It's a fact that housing demand is outpacing supply. It seems our local media consistently reports every year that builders need to keep up the pace to meet the backlog.

Now could be the right time to tap into the market and build your new home using your VA loan.