Has anyone used a va loan to build a new home? What type of costs did you have to pay out of pocket?

Answer 1

I have purchased several homes in the past few years. One this past Friday. I would suggest not using a VA loan. Generally the VA loan is for those who cannot afford a conventional bank loan. Though it is the American dream of home ownership, I wouldn't rush into it. rent for the time being, and SAVE, SAVE, SAVE ! Save at least an amount equal to 20% down, plus a full year plus three months of tax, and insurance.

It would also be advisable to have at least 5% of the homes purchase price in savings for misc. future repairs, in addition to at least 6 months of payment in savings. This will give you a little cussion in the unfortunate event you loose your job, or ill for a longer than normal period.

This may not be the advise you wanted to hear, but it is sound advice. In doing so, you will live in your new home with little stress when the unfortunate occurs.

And if you can avoid it. Do not borrow from a mortgage company. They have up front fees the roll into the loan, hidding them in origination fees, documentstion fees. These fees can be as mush as 5 to 10% of the loan. Get a loan thru a local bank or credit union.

Answer 2

There are VA loans that will allow you to build your own home. Your job is to find a mortgage banker in your area that do VA loans. When you call and speak with a lender, mortgage banker make sure you ask if they do VA loans.

All closing cost and other cost can be rolled into the loan. This type loan is typically called a VA No No. You might inquire of this type loan upon speaking with a mortgage professional.

The mortgage professional will get your VA eligibility.

With you building your own home you will have to do a little bit more work, like plans, drawings, city approvals and other items associated with a new construction.

So you will also have to contact a construction company for the cost and the value after completion. This person should also be able to assist you with plans, permits and approvals from the local authorities.

You, the mortgage professional, construction company will have to be in constant contact with each other to accomplish and complete the transaction.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

I work in a real estate office and see va loans for all types of things (that have to do with homes of course). The VA has a finacing fee of 2.1% of the actual loan amount. So say you get a loan for 200,000 that charge will be 4200 but you can finance that back into your loan so your final loan amount will be 204,200. But with closing you have to pay for an inspection, paying for the attourney to close, title and insurance fees...ect. these fees can add up. For instant, I am in the process of buying a townhome that is at the cost of 185,900 and my closing costs are looking like it will be about 7000. But we didn't use the VA loan we used VHDA. But about 6000 of that the builder is paying for us. But anyways, good luck with your home building/buying

Answer 4

Almost all of your regular "out-of-pocket" expenses can be rolled in to the loan....
Check with several lenders before deciding on one (and remember that some do NOT do VA loans)...because you CAN shop interest rates (some people think you can't on VA, but you can)....
Most VA loans can be 100% (with closing costs rolled in), I think up to $350,000.
A reputable lender in your area will be your biggest help.