How to Get an Active Duty or Veteran Construction Loan
What it is
| At a Glance | |
|---|---|
| Loan Type: | Veterans Affairs |
| Lender: | Government |
| Secured: | No |
A United States Veterans Affairs active duty or veteran construction loan guarantees a loan eligible to veterans to construct a residence owned or operated as a veteran's home. The loan may include the simultaneous purchase of the land on which the residence is situated or will be situated. VA loan guaranties are made to service members, veterans, reservists, national guardsmen, and qualifying unmarried surviving spouses for the purchase of homes, condominiums, and manufactured homes and for refinancing loans.
VA loans permit the purchaser to obtain a mortgage with a competitive interest rate, without a down payment. VA requires a down payment for a home or condominium when the purchase price exceeds the appraised reasonable value of the property or the loan has a graduated payment feature. These loans carry 15-, 20-, 25-, or 30-year options on fixed rate mortgages. Loans are assumable under certain conditions without a prepayment penalty. To qualify for a VA Rate Reduction Refinance your current mortgage must have been paid as agreed for the last 12 months and must be up to date.
Who it's for
VA loans are guaranteed by the Department of Veterans Affairs and can be used to purchase a single family home, including a townhouse or condominium unit in a VA approved project, to build a home, and purchase and improve a home. VA financing is designed to benefit veterans of the armed services, those currently in active duty or the reserves, and their spouses. Veterans can qualify to put zero down on a loan up to $417,000.
What you need to do to apply
The VA does not require an appraisal, credit report, or income and employment verifications. It is possible to obtain a loan through this program with no out of pocket expenses.
Apply for an Active Duty or Veteran Construction Loan
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