These days, new construction subdivisions are popping up everywhere. With the limited housing inventory in most markets on top of the much-improved economy, there is an obvious desire for more housing. Military Veterans are no different. Active military, Veterans, and surviving spouses often choose the route of new construction. Whether a custom built home, spec home in a neighborhood or just a home built less than a year ago, the builder must have a current VA builder ID. Otherwise, VA will not issue a guaranty on the home. This means a lender cannot offer a VA loan on the new home without it. So, how do you know if the builder has an ID?
VA Builder ID Lookup
First of all, even though the VA builder ID is required, it does not mean that the home builder has gone through a strict VA approval process. There are 3 forms for the builder to sign and send to VA for the VA builder number. So, it is pretty simple, but it is required! In order to look up a builder ID, follow these steps:
- Visit VA builder ID lookup site
- Enter either the builder name or name of a builder principal
- At least, enter the state (the city is optional)
- Click “submit”
Sometimes it is hard to find the builder in the VA portal. A tip is to try entering as little information as possible. For instance, if you enter “ABC Building For You Inc.,” it may not show up because it may be listed as “ABC Building 4 You.” Try entering “ABC.” Also, maybe just enter the state. Earlier, a builder could not find his ID by his company name, so we found him by entering only the principal name.
Looking to Buy or Build a New Home Using a VA Loan?
Whether a home is recently completed, under construction, or proposed construction, the VA builder ID is required. The number can be obtained at any stage too as long as it is prior to the loan closing. VA home loans offer such advantages to buyers such as:
- Potentially no money down
- Jumbo VA loans that exceed conforming limits
- Flexible credit guidelines
- No monthly mortgage insurance
- Waived VA funding fee for disabled Vets
- Ability to include closing costs & possibly pay off debts, lease, collections and more
- Combination of a construction loan and VA permanent loan
Buying a Fixer Upper Home?
Guess what? There is a VA renovation loan that allows a VA qualified buyer to purchase a home and complete repairs or improvements to the home. Just think of all the diamonds in the rough that could use some TLC. Now think of buying one with improvements financed into a no money down VA home loan! FYI, VA also requires the contractor on these renovation loans to have a VA builder ID as well. If the contractor doesn’t have one, don’t worry. We can help obtain it!