You served your country bravely, and now you want to build your dream home. Did you know that it’s possible to build a house that fits your unique needs by financing through a VA construction loan? Here’s what you need to know to take advantage of this opportunity to become a homeowner in Eugene, OR.

Why Build Your Eugene Home

Why should you build a home from scratch when there are many terrific homes available in Lane County? A compelling reason to dive into building a home is that the Eugene housing market is tight, and there’s competition for properties.

Other perks that come with constructing a home include the following:

  • You get what you want in a home
  • You can pick the exact location of your house
  • A new house features energy efficiencies not always found in an existing home

Keep in mind that construction timetables are flexible, and delays are common. Your family must have a place to live while your new home is undergoing construction.

Finance with a VA Construction Loan

Once you opt for a new home construction project, you’ll need to finance it. Fortunately, your military service makes it possible for you to use a VA construction loan for the home build. This double duty type of home loan allows you to finance both the mortgage and the costs to build it.

A significant benefit of financing with a VA loan is the lack of a down payment requirement. Instead of putting down a percentage of the total sales price in a down payment, you’ll pay the entire cost through monthly mortgage payments.

Unlike many home loans, VA loans do not have a set minimum credit score for approval. Of course, this doesn’t mean that you’ll find a lender if your credit score is deficient. Most mortgage lenders prefer credit scores that aren’t any lower than 580.

It’s always better to have a strong credit score when you apply for a VA construction loan. The federal government doesn’t set the mortgage interest rates for VA loans. You’ll qualify for the best interest rates if you possess a stellar credit history.

Qualifying for a VA construction loan is the first step in the process. The second part of building your home consists of locating an approved builder.

The Home Construction Process

The first thing to know about using a VA loan to finance your home’s building is that there are rules regarding the construction process. In general, a top-quality mortgage broker and a sterling builder will help to smooth your way into a new home.

You’ll need to find a builder who can do work with VA loans. As the borrower, you can’t function as the builder of the house. Instead, it would help if you found a licensed, fully insured builder who carries a registered rating from the Veteran’s Administration.

Ensure that you know the exact details of your proposed home construction plan before applying with a lender. All the construction plans and specs must be part of the application that you give your mortgage lender. Anticipate that your builder will need to complete a substantial amount of additional paperwork throughout the lending and construction process.

Your builder won’t receive a lump sum of cash to complete the project. Instead, a VA inspector will check the work and release funds as needed. Experienced builders understand this process, and you shouldn’t need to stress about whether the contractor has yet to receive appropriate payment as the project unfolds.

There will come that happy day when you walk into your newly built home once all the construction is complete. Your home mortgage kicks into place once you can move into your home. It’s at this time that you begin paying your regular home loan payment.

Last Thoughts

Lastly, there is something delightfully satisfying about constructing a home that exactly meets your family’s lifestyle. The VA construction loan is a terrific way to finance the construction and home loan for your dream house. As with all complex mortgage situations, you are best off choosing a lender and a builder with the experience needed to know all the ins and outs of the VA loan process.

Strategic Mortgage Solutions wants to help make homeownership dream a doable reality. Contact our office today for complete information about obtaining a VA construction loan in Lane County, OR.