Building a Home with a VA Loan
In this article we are going to talk about building a home with a VA loan. Here at Low VA Rates we often get the question, can you use a va loan to build a house? Lets take a closer look how to use your VA home loan benefits to build that home you’ve been dreaming of designing. Whether you’re PCSing, retiring, or have finished your service and are ready to use your benefits to build your dream home, we can help you get there.
You may have heard that it’s not possible to do construction loans through the VA, but this is just because some lenders don’t offer them. We at Low VA Rates offer construction loans because we believe they’re a great option that all veterans should have access to.
Read below to learn just how you can use this benefit.
Building a Home with a VA Loan, The 3 Types of Home Options
The following are the three types of homes that can be financed with a construction loan:
- Stick-Built Home – Often thought of as the traditional family home, the stick-built home is a home that is built on-site.
- Manufactured Home – This is a home that is built inside a large warehouse and trucked to the property. It has a steel undercarriage that is permanently attached to the on-site foundation.
- Modular Home – Like the manufactured home, the modular home is built in a warehouse and transported to the property. However, unlike the manufactured home, it does not have a steel undercarriage.
Now that you know about the different types of homes, let’s talk about steps to take to get that home built.
How to Use the VA Benefit to Build Your Home
1. Find a VA Expert
The first thing you’ll want to do is to find a lender that is an expert in VA loans.
We at Low VA Rates specialize in VA loans, so we’re familiar with both the details of the loan type and the unique needs of veterans. We’ll help you make sure that before you begin down the building path, there’s no doubt about your credit and income qualifications.
2. Identify the Builder
If you’re planning to build a traditional, stick-built house, the Department of Veterans Affairs (VA) website has a list of registered builders.
However, even if you have a builder you want to work with that is not on that list, it doesn’t mean you have to find someone else. Your VA expert should be able to guide you through how to get that builder registered, which is a simple process.
3. Look for Land
Once you’ve worked with an expert and identified a builder, you’ll need to find a piece of land. There are a lot of places in this wonderful country that you can build your dream home, whether that’s a traditional stick-built house or a modular or manufactured home.
There are specific standards that must be met for each home type, but some general things you’ll want to consider when looking for a property are:
- Roads – The VA has unique requirements regarding roads. If your property shares a road with other homes, you’ll have to have a private road agreement in place that details who is going to provide the maintenance.
- Power Source – The VA will allow a new home to be built that is off the grid, but you’ll have to have a backup power source that is capable of sustaining you for 96 hours. (In the military, though, we have an affinity for generators since we get used to them when we’re deployed!)
- Septic Tank – You want to make sure that the property is available ground for a septic tank. There may be a leach field or a catch basin, but you want to watch out for what is underneath the ground. You don’t want to run into large chunks or granite or encounter a water table that is too high.
- Water – The property you go with is required to have a potable water source. This may be possible through a well, cistern, or another source.
Since there are many details involved with these three steps, it’s helpful to work with a VA expert like Low VA Rates that can guide you through the process.
The Low VA Rates Difference
At Low VA Rates, we work with veterans every day and strive to meet their unique needs. Not all lenders offer VA construction loans, but we want to make sure we’re offering veterans a wide range of options.
Our team has helped many veterans achieve their dream of homeownership, give us a call today to speak with a VA home loan expert at 855-223-0705.