We are thinking about using our VA loan. Our credit is between 700-720 and we have less than $500 a month in bills included car payments. We would

Asked by Sugarbear24, 78260 Thu Feb 11, 2010

like to buy a newly constructed home in NE San Antonio. However, I noticed that on the VA site they said they no longer do 'new construction' loans. Would this type of loan fall under that catergory? We also have about $20000 to put down.

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23
Danny T Thom…, , Austin, TX
Fri Feb 12, 2010
13 answers already... I guess I should check my email more often ;-)

I assume you have gotten the info you needed from the answers below... I just want to add that I really think you should seriously consider buying pre-owned... There are some really great deals out there. If you have some flexibility, we could likely find a home that is very new, just not brand new, and save you a chunk of change...

Just a thought.

DannyT@kw.com
Web Reference:  http://CallDannyT.com
2 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Thu Feb 11, 2010
Sugarbear24
I agree with Brenda. I do believe that VA financing new homes, I think they are referring to you financing the building of a home. There is a big difference. Talk to a lender, I think you will find out your are fine!

Good Luck!!!
1 vote
Matt Stiglia…, Agent, San Antonio, TX
Thu Feb 11, 2010
Sugarbear24,

As the others have stated, the VA does work with new construction and builders. Many builders in the NE even have inventory homes ready to move in. I think you're best move would be to speak with a qualified local lender to determine what you want to spend per month vs. how much you can borrow (from the basics, things sound pretty good for you). From there you can start targeting builders and communities with your agent to find the perfect home for you. As always, I recommend you contact an agent before visiting the builders. Although most of the builders will treat you fairly, their sales representatives work for the builder and not for you. With a Realtor, you can be assured an advocate for you when dealing with the builder.

Hope that helps!

Matt Stigliano, Realtor (r)
RE/MAX Access
(210) 646-HOME
http://www.rerockstar.com
1 vote
Vino Alonzo, , San Antonio, TX
Mon Jan 6, 2014
VA still allows you to use your VA eligibility to purchase a newly constructed home.

A construction loan is an entirely different animal.

I would be happy to help you with this. We have some of the lowest rates and fastest turn times for closing.

I look forward to hearing from you.

Feel free to research my recommendations on this site.

Vino Alonzo, Loan Officer
NMLS# 184279
First Cal Mortgage
210-685-7642
valonzo@firstcaltexas.net
0 votes
Raymond Whit…, Agent, Mesa, AZ
Sun Jan 5, 2014
Oh yes, the VA will work with the new construction, it's just all about the lender you get to work for you and the DD214 and paperwork to all mesh together and make sense. I have always appreciated professional lenders that go all the way and "seal up" the paperwork issue to get loan approval underway as quick as possible. You sound like a great client, I believe anyone would be happy having you as a borrower. Best of luck.
0 votes
, ,
Thu Jan 10, 2013
Danny, they asked the question in Feb 2010
How long have you been away from email?
0 votes
Morethanlend…, Home Seller, USA, Mobile, AL
Thu Jan 10, 2013
Eric's Loan Inc.

A Sincere and certified private money lender approved
by the GOVERNMENT. I give out international loans to all countries
in the world. you can get back to me for more Details.

Kindest Regards
Eric Jones
South Carolina
US.
0 votes
Elliott R. O…, Agent, McLean, VA
Fri Jan 21, 2011
If it's already built you are good to go.
0 votes
Jason Campbe…, Agent, San Antonio, TX
Wed Jan 19, 2011
VA will loan up to your eligiblity on a newly constructed home. What they won't do is provide "Interim Construction" loans... Meaning... VA wont finance the phases of the contruction... they will finance the finished product. If you are looking to build a custom home.. We do have some Interim Products that we can offer to help you to get the home built, and then use your VA to finance the finished product when it is done.. I can explain how all that works if you would like.... just send me an e-mail, and I'll kill you with the details.

We do VA and TX Vet loans on new homes all the time. In fact, most of my VA loans are done on Newly Constructed homes. Depending on the area and price range, there are some really neat perks to going VA. "Hero Next Door" program, etc. Too many to list here...

You will have no issue at all with your credit scores.

I will have to very respectfully disagree with some of the agents below on point... Builders are GIVING AWAY THE FARM right now... especially if you are dealing with a builder that is selling an "Inventory Home." Meaning it is sittting on the ground now, sucking the life out of the builder's pocketbook. They will give you huge incentives, pay all of your closing costs, and depending on your price-range, may just be the best "Deal" on the market...

You just need a blood thirsty buyer agent that will beat them to death over the price and see what kind of incentives you can get out of them. I don't recommend going to see them on your own... You will almost always get a better deal if you go in with a "Tactful Vulture" aka Buyer's Agent. Espcially if that buyer's agent is also a loan officer and has a Good Faith Estimate that the builder's mortgage company will have a hard time matching!! (I can give you details on that little strategy as well if you would like)

Anyhow... the short answer to your question is... You will have no trouble at all getting a VA loan simply based on the home being New Construction. (Assuming your income to debt ratio is ok, and all the other qualifications are met)

Jason C Campbell
Realtor / Mortgage Loan Officer
Keller Williams Realty
210-389-5266
0 votes
, ,
Fri Feb 19, 2010
Hey Sugarbear.... I missed your link before.

Buy a newly constructed home is NOT a 'Construction Loan'

A Construction Loan is where the lender finances the interim financing for the builder costs while the home is under construction. If you buy a home that is already built, you are just using a regular purchase loan.
0 votes
Jana Halvers…, Agent, San Antonio, TX
Fri Feb 12, 2010
I would have to agree with Mr. Thompson about where you will get the most bang for the buck and that's in a pre-owned home. There's so much to choose from and your dollar will go further than what you can build right now. Other things to consider is the landscaping that will not be there with a new build. Any REALTOR that has Multiple Listing access can search by great detail for what you are looking for.
Web Reference:  http://www.janaworks4u.com
0 votes
Stephanie K, Agent, San Antonio, TX
Fri Feb 12, 2010
HI again, Sugar Bear,
You mentioned that you had some money to put down. I got his from a commercial site, which is referenced below. "For purchase and construction loans, members of the regular military fall into the category of first time user or subsequent user. For first time users, no down payment requires a 2.15% fee, up to 10% down payment requires a 1.5% fee, and 10% or more requires a 1.25% fee. For subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 1.50% fee, and 10% or more requires a 1.25% fee.

For the category of Reserves / National Guard, first time users with no down payment requires a 2.4% fee, up to 10% down payment requires a 1.75% fee, and 10% or more requires a 1.5% fee. For subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 1.75% fee, and 10% or more requires a 1.5% fee.

The following persons are exempt from paying the funding fee:

•Veterans receiving VA compensation for service-connected disabilities.
•Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
•Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).
Please note that the VA has the final say on who is exempt."

As my colleagues have alredy noted, your best bet is to find a great loan officer who is well versed in VA loans, then have them compare the advantages and disadvantages of using VA vs conventional, FHA or even other loan types to see what is best for your needs.

Good Luck and call or email if I can be of assistance!

Stephanie Kelley, ABR,CRS,GRI
Keller Williams, Legacy
210 867 8743
0 votes
Josh M. Boggs, Agent, San Antonio, TX
Fri Feb 12, 2010
Sugarbear....

It sounds like just a bit of confusion is out there. With so many amazing enlisted and veterans out there in our great city, this would be BIG news out there if that were to occur. According to one of my long trusted loan officers, VA is still allowing for VA backed construction loans, however he did mention there may be some caveats now about fully custom builds and of whom the builder is. You may certainly wish to speak to a highly experienced loan officer specializing in VA loans for some hands on assistance on this?

God bless,

Josh
Web Reference:  http://www.eXposedHomes.com
0 votes
Randy Pereira, Agent, Helotes, TX
Fri Feb 12, 2010
Hi Sugarbear24,

I took a look at your link, and that website is not related to VA. VAloans.com is a private company specializing in VA financing, and is not a government agency. Many business use the term "VA" for marketing, so be very careful.

You will not have any problem using a VA loan on a new construction home.

I've attached the link to VA's actual government agency website, for you to review their latest guidelines. Chapter 3 contains everything you need to know, please read Topic 2, pg 3-5 "Eligible Loan Purposes".

The major benefit of a VA Loan is not having to put any money down, a 2.15% funding fee is charged..and that is added to the loan amount. Unless this is you have used your VA loan before, then the funding fee starts to increase around 3.15% for the second time.

As a veteran myself, investor, and now full-time Realtor in San Antonio, I would be happy to sit down and do a free Home Buyer Consultation with you, no strings attached.

If not, all the best, and I hope this helps,

Sincerely,

Randy Pereira
Realtor / Relocation Specialist
Century 21 United - Northside

"Trust 2 Buy, Trust 2 Sell"
http://www.Trust2Move.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Feb 11, 2010
Sugarbear24....

I would use VA if you can. Typically the best deal around. Also you want to use a loan officer who is very familiar with VA loans....ask them how many they have personally closed in the past 3 months. I believe you can still buy a new home, but I think what you read is they will not do construction loans which are different. That's more for if you want to buy a lot and have a custom homebuilder build your home and take draws periodically until completion. This is different than buying a new home from a builder who will finance lot and construction from their funds and you only close once at the time of completion when it is ready for move in. Also feel free to shop VA loans to different lenders. I've seen some loan companies who say they service veterns, only to take advantage with high fees.
Web Reference:  http://www.teamlynn.com
0 votes
, ,
Thu Feb 11, 2010
Maybe if you pointed us to what you read.... We could help.
I am not aware of VA not allowing you to buy new construction with that loan product.

Tom Burris
Mortgage Banker
DallasLoanGuy.com
0 votes
Frank Bailey, Agent, San Antonio, TX
Thu Feb 11, 2010
Sugarbear24,

I'm going to forward the link to one of my trusted loan officers to get to the bottom of this.
0 votes
Brenda Mullen, Agent, Garden Ridge, TX
Thu Feb 11, 2010
I think the VA Construction Loan has more to do with building a custom home, and would be different then the VA guaranteed loan; but as others have said, your best bet would be to get with a qualified VA lender. I have a couple of recommendations for you if need a lender to get started with. Although, if you are thinking of building new, the Home builder will want you to qualify with their lender. I am almost 100% positive that all home builders are accepting VA loans. Again, if you need any other advice or help, please feel free to call me.

Brenda Mullen
Home Team of America
210-807-0819
brenda.mullen@sbcglobal.net
Web Reference:  http://www.findurwayhome.com
0 votes
Pat & Steve…, Agent, Westlake, OH
Thu Feb 11, 2010
Sugarbear:

Every time I think I am up-to-date with VA loans, something else changes. So, my advice is to talk to a local VA lender. If my memory serves me correctly, I believe the issue was with construction loans to build new homes. It's possible that if the home you want is 100% complete, you may be successful, as the completed home can be appraised in its entirety.
0 votes
Isabella Cha…, Agent, San Antonio, TX
Thu Feb 11, 2010
VA loan are very popular in San Antonio, on new construction lenders ask for some months on reserves, I do not think will be a problem. You can search for new homes or other tipe on my web site. I farm on the NE of San Antonio.
0 votes
Sugarbear24, Home Buyer, 78260
Thu Feb 11, 2010
http://www.valoans.com/geninfo-03a.cfm

When I looked at this page about VA Construction loans it read:

'Due to the changing mortgage environment, we are currently not offering VA Construction loans at this time.'

I thought that might include new home construction.
0 votes
Brenda Mullen, Agent, Garden Ridge, TX
Thu Feb 11, 2010
I don't think that you will have any problem what so ever using your VA loan on a new home; however, with having that much to put down on a home new or otherwise, you may want to reconsider. Give me a call if you would like help buying a new home and for advice on home buying in general. You can also check out my website for more information. I look forward to hearing from you.

Brenda Mullen
Home Team of America
210-807-0819
brenda.mullen@sbcglobal.net
Web Reference:  http://www.findurwayhome.com
0 votes
Frank Bailey, Agent, San Antonio, TX
Thu Feb 11, 2010
Hello Sugarbear,

Where did you find that they no longer do VA loans on new construction? I just had a fellow military member close on a great new construction built from ground up using his VA. Please contact me and I would be more than happy to further investigate this and get you started.
Web Reference:  http://www.fabailey.com
0 votes
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