Finding a construction loan is very difficult today and almost impossible to find over 75 – 80% of the value, but finding 100% financing for building a new home is really tough. Luckily, there is the option of VA construction permanent loans. This is a combination of a construction loan along with a VA permanent closing. Therefore, Veterans are not limited to purchasing already built homes and could actually build a custom home.
VA Construction Permanent Benefits
Besides the obvious benefit of building a new home, Veterans have great financing advantages available to them. These benefits include the following and more:
- 100% permanent financing in NC & SC
- Up to 95% financing in other states
- Construction loan based off VA perm loan
- Possible financing of construction interest payments – depending on the appraised value
- Include closing costs in the loan – depending on the appraised value
- 6 months to build (100% option), 12 months to build (95% option)
- Simple builder approval process
VA Construction Permanent 100% Financing Available
In NC and SC, up to 100% financing is available for a new home up to a max loan amount of $453,100 plus the VA funding fee. In Virginia, the maximum financing is less. Do keep in mind that if a Veteran is using bonus entitlement, then the loan to value could be less because of the Veteran’s available entitlement. Allowed home types include:
- Single Family Detached Homes
- Detached PUD
- Off Frame Modular Homes
Although, manufactured homes such as doublewides or singlewides are not allowed, off frame modular homes are allowed. So, if a modular home dealer cannot fund the construction, this can help.
If you are a Veteran looking to build your dream home or a home builder looking to help more clients, contact one of our OVM Financial loan officers to discuss how a two time VA and construction loan could help.