414-795-4202

New Construction

VA loans are a type of mortgage that is available to veterans, active-duty military members, and eligible surviving spouses. These loans are guaranteed by the Department of Veterans Affairs (VA), which means lenders are protected in case the borrower defaults on the loan. VA loans typically offer more favorable terms and interest rates than conventional loans and do not require a down payment.

In addition, VA loans do not require mortgage insurance, which can save borrowers money on their monthly payments. VA loans have flexible credit requirements, which can help borrowers with less-than-perfect credit still qualify for a mortgage. Overall, VA loans provide a valuable benefit to those who have served our country and can make it easier for them to achieve the dream of homeownership.

Apply For A Mortgage Today!

New Construction Characteristics

1) Construction loans are typically short-term loans, often lasting between six months to a few years. They cover the period of construction and are designed to be repaid once the project is completed or converted into a permanent mortgage.

2) Instead of receiving a lump sum upfront, the loan amount is disbursed in stages or "draws" as the construction progresses. These disbursements are typically based on milestones, such as completion of the foundation, framing, roofing, etc.

3) During the construction phase, borrowers usually make interest-only payments on the amount disbursed, rather than paying the full loan amount.

4) Lenders might offer flexible terms and conditions to accommodate the construction process.

Apply For A Mortgage Today!

5) Lenders may have specific requirements for borrowers and builders/contractors involved in the project.

6) Lenders often conduct inspections to verify the completion of construction milestones before releasing funds for the next phase. They might also monitor the progress to ensure that the project is on track.

7) Once construction is complete, borrowers may convert the construction loan into a permanent mortgage, such as a fixed-rate mortgage or an adjustable-rate mortgage. This involves refinancing the remaining balance of the construction loan.

8) The builder or contractor involved might also need to meet specific qualifications, provide documentation, and adhere to certain standards set by the lender.

Apply For A Mortgage Today!

5) VA loans do not require mortgage insurance, which can save borrowers money on their monthly payments

6) VA loans have flexible credit requirements, which can help borrowers with less-than-perfect credit still qualify for a mortgage

7) VA loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums

8) VA loans allow for options for refinancing, including streamline refinancing and cash-out refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.