A VA construction to permanent loan in Florida is a VA-backed mortgage option that allows eligible veterans and active-duty service members to finance the construction of a new home under one loan structure. This program combines the construction phase and the permanent mortgage into a single loan, helping borrowers avoid the need for separate construction and long-term financing.
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.
This program may be used for modular homes, too.
You may enjoy our additional blog posts as well:
The Basics of Construction to Permanent Loans
VA Construction Loan Options in Florida
VA construction loans are specialized, and finding lenders that offer construction-to-permanent financing can sometimes be challenging. Working with an experienced team can make a big difference when navigating the process from your initial plans through the completion of your home.
Depending on your scenario, a VA construction loan may allow you to build on land you already own, purchase land and build a home, or build on land that was gifted to you.
There are also additional pieces to consider when financing new construction, including builder requirements, inspections, and how the loan transitions into permanent financing once the home is complete.
Florida Mortgage Firm offers VA construction-to-permanent financing throughout Florida. Our team can review your plans, property, and builder information and help you understand which options may work for your specific scenario.
Looking for a Construction Loan in Florida?
Florida Mortgage Firm specializes in Conventional and VA construction-to-permanent loans for qualified borrowers. Please note that Florida Mortgage Firm does not currently offer FHA or USDA construction loans.