VA Construction Loan FAQs
General VA Construction loan questions
A VA Construction Loan is a type of mortgage financing that allows veterans to build their home using their VA home loan benefit and obtain all the benefits of a normal VA loan (no down payment, no private mortgage insurance, competitive interest rates, flexible credit). This is a one-time close allowing you to close on the construction and land (if not already owned) in one closing. Once the closing has been completed, then construction begins. Once the home is built, the loan turns into a permanent VA loan and there is not a second closing.
We have found that a lot of lenders do not offer VA construction loans. Here at CrossCountry Mortgage, we are able to offer VA construction loans not only in Texas but in all 50 states.
No down payment is required under the VA guidelines. However, the lender that is offering this loan can require a down payment. Here at CrossCountry Mortgage, we require a 5% down payment if the loan amount is over 1M. Any loan amount below 1M has no down payment.
Assuming you do not have an existing VA loan, we are able to lend up to 2M on a VA construction loan.
You would submit your application online. As this stage we only do a “soft” credit pull which will not impact your credit. Once we receive your application, we will contact you to go over it and then will request the items needed to understand how much you would be qualified for under the VA Construction Loan program. Once you understand that, we issue a pre-approval letter, provide an estimate and wait for you to find your builder and your land if you don’t own that already.
Builder, Construction, Property and Land Questions
Yes, we would consolidate the land loan into your construction loan. If you do not own the land yet, the VA construction loan would include the land purchase in the closing.
Each scenario would need an evaluation. We would need to evaluate this to confirm this specific need.
The builder would complete our builder package as well as provide 3 projects they have worked on in the past. Our team and the builder will work together to gather all the necessary documents.
Yes, the builder will need to have been issued a builder ID number. If the builder doesn’t have this, we can assist the builder with this process.
Single Family, Multi Family, Barndominiums, Modular Homes and Log Cabins allowed
No, we do not finance container homes on any construction loan products.
Yes, but they must be built at the same time as the primary structure. ADU’s are not allowed with manufactured homes.
No, we do not allow you to be your own builder. You would have to select a builder and then we would need to approve your builder.
Only the lot prep can be started, and no construction or structural work of any kind can be started.
We would need to review and see what is needed to meet the VA guidelines. If needed, you can adjust the construction contract or put additional money down in order to meet the VA appraisal requirements.
Closing Cost, Fees and Mortgage Payment Questions
To quote you an interest rate we would need a loan application from you. This only involves a “soft” credit pull and will allow us to give you an accurate rate quote. We will also be able to provide you a detailed estimate to give you an idea of all costs and fees involved.
