VA Loans Q&A Google Hangout - Quicken Loans Zing Blog

It only takes a bit of digging to realize that VA loans are a great option for U.S. veterans and active-duty members looking to buy a home. But before committing to a VA loan, it’s important to leave no questions unanswered. Quicken Loans did a VA loan Q&A Google Hangout with the Department of Veterans Affairs, Military.com and other professionals, to clear up questions and misconceptions about VA loans.

Q: Can a VA Loan be Used for New Construction?

A: John Bell of the Department of Veterans Affairs explained that veterans with a VA loan do have the ability to use it with new construction, and that the VA certainly does have that authority. The only issues he’s seen have occurred with the lender and the programs they have available. Margo Willis of the National Association of Realtors says that she sees a lot of new construction in her area, and that she sees veterans take advantage of their VA loan to move into a brand new home with no problems. Custom-built homes, however, can prove to be an obstacle depending on your lender. Bell chimed back in to explain that it also depends on whether you get your financing upfront, or if you build before being approved.

Watch the full video below!



Check out some of our other VA loan Q&A posts!

 

 

Related Posts

This Post Has 10 Comments

  1. I will be needing a VA construction loan in the next few months prior to breaking ground. Is this VA construction loan something that Quicken Loans can do?

    1. Hi Adam:

      I’m sorry to say that at this time, we only do loans on construction that has been completed. We don’t do construction loans. Thanks!

    1. Hi Clayton:

      We do loans on new construction for VA. The house does have to be completed. If this is the situation for you, we can help you with a preapproval through Rocket Mortgage. If you’d prefer to get started over the phone, one of our Home Loan Experts would be happy to talk to you at (888) 980-6716.

      Thanks,
      Kevin Graham

    1. Hi Jeffrey:

      We don’t currently offer VA construction loans, but we could take a look at refinancing your primary mortgage if you have equity in your home. This could help you with the cash necessary to complete the renovation. If you’re interested, you can fill out this form or reach out to one of our Home Loan Experts at (888) 728-4702.

      Thanks,
      Kevin Graham

  2. I’m interested in building a house on land I already have, money down is a problem though. I currently pay 800 a month in rent which is a decent mortgage payment bit my current funds are taken by rent. Have some money saved but not as much as I think it will take for 20% down. How do I make this work?

    1. Hi Jeremy:

      Unfortunately, we don’t do new construction loans. You don’t have to put 20% down for a house anymore though. There are lower down payment options available. That would be my advice.

      Kevin Graham

  3. i am finding it impossible to get a new construction loan to build a duplex, it is a VA benefit allowed by the Va however we can’t find a lender who will finance a new construction loan, with draws to have the duplex built. How is it a benefit to get a new construction loan, then pay again for the VA permanent loan, it is much cheeper to go construction to perm, put the required 20 percent down to avoid the PMI, also I have found the interest rates slightly higher on the Va side than conventional, so no PMI with Va but in the long run your not saving money with a higher interest rate.

Leave a Reply

Your email address will not be published. Required fields are marked *