I've identified a piece of land in New York. I was wondering if any one has experience with obtaining a VA construction loan. I'm a member of the US Coast Guard. I have the certificate of eligibility. And would like to use this benefit to buy the land and build a home on it.
Any advice would be appreciated. Thanks for your help.
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I don't think a "VA" construction loan exists. VA loans would be on the permanent side of lending, not the construction side. You would, however, need a VA approved builder. If you are looking to take full advantage of your VA loan, see if you can find a builder to carry the construction loan until the permanent VA loan closes.
@Account Closed this is great advice. thanks for sharing the link. I'll check it out.
I would recommend looking up your county VA liaison (Google your county and VA liaison.) That is where I started with my VA loan, and they pointed me in the right direction.
From what I understand about the VA loan is you only get one, but you can reuse it as many times as you want. The other catch is you have to live in the property, and you can't live in a construction site. So if my bureaucrat-ese is correct that means you can't use your VA loan as a construction loan.
I could be wrong but I talked to a banker the other day about getting a loan to build a duplex to house hack. The banker said we would have to start with a traditional construction loan. Then when we went to close the mortgage on the land and the construction loan would be taken over by the VA loan.
Hope this helps.
My pleasure, Giordano. Good luck and thank you for your service.
@Giordano Rodriguez any more progress on this front? I am also looking to build a custom home on a piece of land and looking for a VA Construction Loan.
Originally posted by @Brendan Harrison :
Giordano Rodriguez any more progress on this front? I am also looking to build a custom home on a piece of land and looking for a VA Construction Loan.
VA construction is super super niche. I don't think a VA construction-to-perm wholesale lender has ever even hit me up for brokered business. I know these are not mythical creatures because they are all over the va.gov website, but it sure feels like it.
I'd find the VA-registered builder first and ask who they work with on the mortgage side of things.
@brendan Harrison, I wish I had more information to give you. I ended up finding another deal and put that VA construction loan on the back burner. But Chris makes a great point.
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