Did you know VA home loans aren’t limited to existing homes? Many veterans have already taken advantage of our VA New Construction Loan to create their new home. Here’s how they work.
New Construction Programs for Veterans: Overview
VA new construction loans are just that: short-term mortgages for qualified veterans who are planning to build their own homes – whether that’s on property they already own, or on land they’re trying to purchase. Most mortgages require a down payment, but active military, veterans, and their families who are approved for VA new construction loans are not required to.
These aren’t the only loan programs available to veterans at The Federal Savings Bank. If you’re looking to purchase a home that’s already been built, please check our resources.
Frequently Asked Questions for va new construction loans
Can you get a VA loan for a new construction?
Yes! Qualified veteran borrowers can use their VA entitlement for a new construction loan at The Federal Savings Bank. Since these are short-term loans, we encourage interested borrowers to secure financing early in the process.
Remember, VA construction loans will have the same requirements as other construction mortgages. This means we will consider your regular income, credit score, and debt-to-income ratio (DTI) as part of your loan application.
I already own the land I want to build on. Do I still qualify?
Yes! Veterans and service personnel are free to use any equity they may already have in their property to qualify for a VA new construction loan.
I don’t yet own the property I’d like to build on. Do I still qualify?
Yes! Many borrowers choose to include the price of the land they are building on in the total amount of their TFSB VA new construction loan.
I’m working with a builder. How is this different than building my home myself?
First, be sure to confirm they have a valid VA builder ID. In this scenario, the builder will be considered responsible for any construction closing costs, but some builders will pass those costs back to the borrower – check your agreement!
The Federal Savings Bank has a number of different programs available to suit your specific needs. Whether you are a service member, a family member, or a builder, our mortgage professionals are committed to assisting you as you make your new home a reality. If you’re interested in learning more about a VA new construction loan, or any other programs, you can contact us by calling 877.788.3520, or via our website. We look forward to hearing from you.
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
