VA Construction to Permanent Loan

The VA construction-to-permanent loan allows home buyers to build a home with no down payment and with an all-in-one financing option for construction, buying land and the funding of a “permanent” mortgage with one closing.

This construction loan requires current military experience or prior with an honorable discharge. These loans do not require monthly mortgage insurance, and the rates are excellent. VA rates are typically as good as, if not better than, most conventional rates since the lender has a guarantee in place from the government that the loan will perform.

Often, home buyers will get a construction loan, then refinance out of the higher interest rate on that loan after the home has been built. This can be costly since the borrower will have to pay for two closings. However, the VA construction-to-permanent loan through Florida Mortgage Firm is a more affordable option to that.

Because the permanent loan is closed before construction begins, a home buyer will not need to get qualified again for a mortgage — no more credit scores pulled, no more appraisal purchases, and more.

Altogether, this simplifies the entire construction and purchase process. Here are some other perks of the VA one-time-close mortgage:

• You don’t have to own your land,
• You may buy land and include the cost in your financing,
• You may have land gifted to you by a family member,
• If you’re financing land, have the balance included in the new loan,
• Include the closing costs in your financing (depending on how you want to structure the loan).

This program may be used for modular and manufactured homes, too.