Are you a U.S. veteran or an active duty service member looking to build your own home? If you’re in the process of planning your dream home, you’re probably considering multiple loan and financing options as well. You probably think that you need to take out a loan for the construction project. Then, you will need a loan for the mortgage itself. You might even be dreading the prospect of paying closing costs multiple times.
The U.S. Department of Veterans Affairs, or VA, has loan options specifically designed to help veterans make their dream home a reality. VA loans are issued by private lenders but backed by the VA. While the VA offers traditional loans, they also offer Single Close Construction loans for veterans looking to purchase a lot and build their own home. Read on to learn more about VA Single Close Construction Loans.
A Veterans Administration One-Time Close (OTC) Loan is a popular option for anyone who is a veteran (or on active military service) who would like to build their own home. A VA OTC loan permits the borrower to apply for a single loan that will be able to cover the lots’ financing, the actual construction of the home. Importantly, when someone takes out a VA loan, there is no down payment required. This means that people will be able to build the house of their dreams with a lower liquid cash requirement. Because of this, the VA Single Close Construction Loan is a popular choice among veterans and members of the active military.
With a Single Close Construction loan from the VA, the process of applying for and receiving financing is relatively straightforward. Traditional construction loans, on the other hand, require that the homebuyer secure a separate loan for the construction project in addition to financing the land. Because these loans have to be closed in separate stages, closing costs are incurred twice.
Fortunately, Single Close Construction loans are now readily available. The VA OTC Loan wraps up both the construction financing and the land financing into one. This means home buyers only have to pay closing costs one time. With a Single Close loan, home buyers can save both time and money. There is only one deed, one promissory note, and one closing process. This is an ideal loan for those who have ties to the military.
There are a few criteria that people need to meet to qualify for this loan from the VA. These include:
However, the actual loan amount for which you can qualify will depend on income and liquid cash. These criteria are relatively standard.
There are a few benefits that borrowers need to know when it comes to this VA OTC Loan. Some of the benefits include:
For those who have ties to the military, this is a great way to save money on any construction process involving the completion of a new home.
This loan from the VA is only one of the options for those who would like to build their own home. There are other options out there as well, but you may need to meet additional criteria. Some of the alternatives include:
Clearly, there are lots of loan options from which people can choose. All of these only require a single closing.
If you are interested in applying for a VA OTC Loan, some of the steps you need to complete include:
Once you have been approved for this loan, the lender will contact you and review the details of your project. Then, you can get started building your home!
If you are looking for a VA OTC Loan, then contact the experienced advisers with GO Mortgage Advantage. At GO Mortgage Advantage, we are proud to provide veterans and active-duty military members with financing to build the home of their dreams. Our trained professionals will work with you from day one to make sure that everything proceeds as smoothly as possible. We are licensed in over 30 states across the nation and are ready to help you build the home of your dreams!
Call us today to learn more about how we can help you!