Here’s how using a VA loan to build a home differs from the usual process.
Today I’m joined by Jordann Hartzheim from Guaranteed Rate Mortgage, who is here to talk about VA home construction loans. Jordann is an expert at helping people get to the closing table on the financial side of things, so her advice is invaluable. With the VA loan, we know that buying a home as a Veteran isn’t terribly difficult. However, when a Veteran wants to build a home, the process becomes quite different.
First, find a builder who will finance the land and the construction of the home itself. The builders will find out what the actual value of the home is, and when you come to an agreement about the value, you’ll be able to get financing from the builder. Once the construction is complete, an appraiser will do a final inspection to make sure that everything is up to par with what was agreed upon. From there, the process is the same as a regular VA closing.
“As long as you’re working with a VA-approved builder, you’ll still enjoy all the same great benefits that the VA loan has to offer.”
The main difference between this process and the traditional VA buying process is that the builder is more involved in the upfront financing. But how do buyers know if a builder can do this? As an expert, Jordann can recommend well-known builders in the area who have been approved by the VA and are able to provide upfront financing. As long as you’re working with a VA-approved builder, you’ll still enjoy all the same great benefits that the VA loan has to offer, like zero money down and no private mortgage insurance.
It’s exciting to know that Guaranteed Rate Mortgage can to help our Veterans build new homes. If you’d like to learn more about this program, visit www.Rate.com/jordannhartzheim or call (715) 892-7799.
And if you have any questions about buying new construction or real estate in general, don’t hesitate to call or email us at The Holt Real Estate Team. We’d love to hear from you.