VA One-Time Close Construction Loan
Peoples Bank & Trust Company is your trusted partner for VA purchase loans and refinancing. We have helped thousands of military families purchase or refinance their home and we pride ourselves on being VA loan specialists. At Peoples Bank & Trust Company, we are experts at VA one-time-close loans, and we can help you in All 50 States.
Using your VA benefit for a one-time construction loan is one of the best ways to get the home of your dreams. YOU get to choose the land, you get to choose the builder (must be VA approved, we can help with this) and the costs to improve the land all in ONE final permanent loan.
Benefits of VA One-Time-Close Loan with Peoples Bank & Trust Company:
- Up to 100% financing depending on the appraised value of the home (there are additional fees with this loan that typically require cash to be brought to closing)
- Purchase the land you want
- If you already own the land, you can use the available equity as a down payment
- 15 and 30-year Fixed Rate loans
- No need to requalify at the end of construction
- 50 state financing
- Single close reduces costs
- Minimum loan amount $400,000
Process:
To get started we will need to make sure that you have the VA eligibility required for the benefit. Even though the VA loan does offer up to 100% financing the construction loan typically requires money to be brought to closing out-of-pocket.
This all depends on the appraisal BUT there will be a 5% VA contingency fee, VA draw fees and interest only payments that will need to be accounted for up front. Also, if you have a funding fee that will often need to be brought to closing as well. On a $400,000 loan amount you can expect to bring somewhere around $40k to $50k out of pocket. It could be less, but we like to make sure our clients are prepared for the upfront costs so there are no surprises.
Once we are able to determine that you meet requirements for a VA loan, we will work with you to determine your income, debt-to-income ratios and your overall budget. After our VA specialists go over these details with you, we will be able to calculate the total amount (including land/construction) you are able to borrow.
You will then work with your realtor to find the land and builder you want to use. We will make sure your builder is a VA approved builder and if they aren’t we will assist in getting them qualified. You will need to obtain complete building plans so that we are able to get a value based on the completed build. Once building starts, the VA requires that inspections be routinely completed to make sure that the land and construction is up to VA standards and meet VA minimum property requirements.
Closing will involve approving the construction and final permanent loan all at one time. Because of this it usually takes a little longer to complete. You can plan on a 45 to 60 day closing process once we have received all the required documentation to process the loan and have the project approved, including building and site development plans. The overall process (depending on how fast the builder is to respond) may take between 2 to 3 months. The good news is that once this closing is complete you don’t have to worry about re-qualifying for the loan at the end of construction. With a typical construction loan, you will need to refinance the construction part of the loan at closing which means that you will then need to completely re-qualify for the loan. Luckily with a VA one-time-close construction loan you won’t need to do that.
Peoples Bank & Trust Company is proud to offer you this opportunity
This is a wonderful program for our Veterans, and we are thrilled to be able to offer it to our clients. So, if you are considering building your own home or buying a manufactured home/land then give us a call or fill out our contact form today. We have helped thousands of military families, and we are here to help you too!
