VA construction loan through USAA

[monkeyinabarrel]

What can you tell me about a VA construction loan through USAA?

Should i assume we would get pre-approved for the same amount we have been pre-approved for a regular mortgage?

Does the house being already built add additional challenges, we would just need the loan to make it livable - electric, appliances etc.

I have heard the process is a really challenging. Any insight of advice would be helpful. thanks

[gunsgirl]

Originally Posted by monkeyinabarrel What can you tell me about a VA construction loan through USAA? Should i assume we would get pre-approved for the same amount we have been pre-approved for a regular mortgage? Does the house being already built add additional challenges, we would just need the loan to make it livable - electric, appliances etc. I have heard the process is a really challenging. Any insight of advice would be helpful. thanks

the VA does not do construction loans. ( I just checked this with a loan officer)

[monkeyinabarrel]

they do actually.

[CocoaGoddess]

Originally Posted by gunsgirl the VA does not do construction loans. ( I just checked this with a loan officer)

Really? I thought they did. Hmmm...

Why would they do new home construction loans by builders, but not private construction homes? That hardly seems fair.

[amazinggrace]

VA construction loans are financed by VA lenders on a regular basis. Usually the builder is required to carry the cost of the new construction until the home is completed. If you own the land of the home, the builder may not be willing to carry construction costs and you may need a bridge loan until a permanent VA mortgage is obtained.

Construction loan terms vary widely. A pure construction home loan will be short-term (6 months to 2 years) and will be replaced by another long-term mortgage upon completion. New home construction loans sometimes have reduced application and loan processing fees.

VA loans allow for no down payment and have a high LTV. Therefore, some banks wouldn't work directly with veterans. A separate interim VA construction mortgage loan will be available for property built by VA approved home builders and through real estate agents specializing in VA construction loans. VA new construction home loans are easier to locate.

http://www.mortgageqna.com/federal-g...tion-loan.html

[gunsgirl]

ok maybe we are talkiong about 2 different loans...

I called a loan processor and she said VA does not back "construction" loans.

now they do do new construction homes- and thier is a difference.

[bethanybabe]

We are using a VA loan to build our home right now. We have not faced any challenges just a lot more paper work. We are using a very large builder who was very familiar with VA loans.

[monkeyinabarrel]

Originally Posted by gunsgirl ok maybe we are talkiong about 2 different loans... I called a loan processor and she said VA does not back "construction" loans. now they do do new construction homes- and thier is a difference.

The bank the loan officer works for might not do VA construction loans and that led her to believe that the VA does not do them.

[bethanybabe]

Our builder has there own finance company you may want to look into that also when we started the process our builder gave us a list of lenders in the area that were familiar with VA loans since we don't live in a military community. Your building a house right? You can't you use the VA loan for anything that would incur income.