Looking out for those who look out for us.

Veterans or Active-Duty Members have a great VA Loan benefit available for purchasing a home.

For a home purchase, a VA Loan offers many advantages over a conventional loan. The following are more, but not all, benefits the VA loan has to offer specifically to veterans and active-duty military.

• No private mortgage insurance required
• Lower rates than a conventional loan
• You can get 100% financing of the purchase price
• Easier qualifying criteria compared to a conventional loan
• Poor credit will not automatically disqualify you
• No prepayment penalty
• VA loans are available to first-time home buyers

The VA loan benefits only apply to the financing for a home and lot together. You cannot buy only land with your VA loan. If you want to first purchase the perfect homesite, find a custom home builder and then build the home of your dreams, there are a few steps you must take before taking advantage of the VA loan.

The first step in the process is to find a lender to finance a construction loan. The VA does guarantee construction loans, but not all lenders provide them.  However, there are lenders that do provide VA Construction loans so it is worth investigating. The lender would need to give you a bridge loan for the land and  new home construction which usually comes in stages.

Once the home is built and all inspections complete, then you would get approved by a take out lender utilizing the VA program. The lender pays off the construction loan and creates one new VA mortgage for the Veteran.

For more information:  http://www.valoans.com