The VA Home Loan program helps those who have served our country to more affordably purchase a home.
VA loans offer qualifying military veterans and service personnel access to mortgages with no money down, competitive interest rates, and do not require the buyer to pay private mortgage insurance. As a result, veterans may save thousands at closing and hundreds of dollars every month through this program.
However, it has been difficult for military veterans to build a new home while taking advantage of the VA loan program’s benefits. Because new construction entails higher risk than the purchase of an existing home, most lenders today do not finance new construction as part of a permanent mortgage. Typically, new construction requires a borrower to get separate loans for lot purchase, construction, and a permanent mortgage when the home is completed. Only the permanent mortgage can be completed through the VA loan program, so veterans incur down-payment and closing costs on the initial loans – not to mention the headache of going through the loan process multiple times.