By Jane Lasky
For many, the American dream is to build a home on a nice piece of land. For veterans, this dream is indeed possible with the aid of a VA loan. However, take note: A number of known caveats need to be addressed before a VA Loan of this type can be acquired by those who have served our nation.READ MORE: Orange County's COVID-19 Hospitalizations Rise To 1,200
One way to overcome certain obstacles on the way to an official VA loan for your new build is to first take out a conventional, short term construction loan.
In this scenario, after the contractor—a professional who holds a valid VA builder identification—is hired to fulfill your wishes, you will need to plan on transferring that loan to a new one that fits into the VA loan guidelines.
In other words, the short-term non-VA loan will be turned into a long-term VA loan through refinancing. Planning for this transaction before anyone even puts up on board is crucial in order for this option to work.
No Down Payment
Remember, a zero down payment option is only available when you take out a proper VA loan. So you will need to come up with the capital necessary to start with a conventional loan and then switch to a VA loan.READ MORE: LA Mural, Tributes Honor Betty White On 100th Birthday
Finding Your Happiness
Know that certain official veteran loans from VA-approved lenders do exist, allowing for new construction. The downside is that it may take some patience and a whole lot of looking in order to hunt down one of these illusive lenders that will accept your terms.
So, say you have been able to pin down the right institution to help you build a VA approved financial vendor. What happens next? Typically, that vendor will directly pay the particular builder on the job in a series of increments during certain stages of the fresh project.
Living The Dream
Whatever method you use to find that American dream you’ve always held during the years leading up to owning your own home by building it from the ground up, that groundwork will definitely pay off. It will pay off not only in that custom home, but in the happiness you’ll experience from the first day you turn your key to enter this lovely abode that suits all your needs and all your desires, too.
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