***VA and Conventional Construction Loans are now being offered.
***USDA and FHA Construction Loans are currently suspended.
Lot and land loans are becoming more and more sought after in Florida. They are also available without a down payment through Florida Mortgage Firm’s VA construction loan.
While many veterans are aware that VA mortgage loans are available for purchases and refinancing, most do not know they can also be used for construction.
The VA construction-to-permanent loan enables veterans and their spouses to purchase vacant lots and land and simultaneously build a custom home. A licensed builder will be paid in increments (also known as “draws”) based on the completed phases of construction, and mortgage payments will begin shortly after the home has been built.
In markets where home values are high and inventory is low, this presents an option that would be high in demand if more people knew about it.
Just like a regular VA loan, the construction version requires no down payment and has only one closing. This minimal-out-of-pocket program further appeals to veterans since it allows the closing costs to be paid by a builder.
Brand-new homes typically have monetary benefits, too — lower-than-average homeowner’s insurance rates, smaller electric bills and less initial maintenance. They even allow veterans to pick custom features for their home.
Many lenders offer VA loans only for purchasing existing structures and refinancing, however, Florida Mortgage Firm also specializes in VA construction financing. So if you’re a veteran and would like to learn more about VA construction loans, complete the below form, and one of our construction specialists will reach out to you with the facts.
As always, we are never the “salesy” type but rather provide the information in a transparent way so you can make the best decision for you and your family.