Important Facts You Need to Know About VA Construction Loans

No doubt, buying a home is a happy and important decision in life but in most of the cases, the happiness takes away by the fact that it has been used by others before. However, if you obtain a VA construction loan then you can build a house as per your choice. So, for veteran Americans who have served in the army or who are currently enlisted in the service, the government offers VA construction loans to be able to construct ideal homes.

Creating a home from scratch is better than buying an already existing home

●       You can choose the design as per your choice.

●       You can have a flexible repayment structure

●       The interest rate will also be lower than the regular rate.

Construction of a home is a difficult and time-consuming task. But with the help of the right agency and knowing about the various facts related to distribution and payment, you can accomplish the task without any hassle.

The VA Financing is complicated

The process of funding to construct a house is complicated than the process of funding to buy a home. The VA construction loan features more terms and conditions than a regular home loan and moreover, there is always delays and changes in the design, which makes the matter worse.

Even after the approval of the VA construction loan, there are some guidelines designed for the borrower. A funding fee is there which has to be paid within 15 days from the closing of the purchase deal. However, some borrowers are exempted from the fee on the physical ground.

Difference in repayments

In the case of VA construction loans, the repayment takes several months to start, unlike VA home loans where it begins after 30 days.  The reason is that the process of financing is different in both the type of loans. The standard rule applies here is that the repayment should not start till the time the borrower has not shifted to the property. However, a maximum of 12 months period is granted to complete the construction and to start the repayment thereafter.

Contacting the right agency that deals in Texas VA construction loans

You should talk to only the registered contractors to discuss about constructing your home. Though you will find many such agencies, you should contact only the one who would work at the lowest cost.

You can call us at 888-295-4055 for your VA construction loans requirements. We are duly registered under the Department of Veteran Affairs. 

Check These Interesting Facts About The Mortgage Rate Of VA Loans

It is a known fact that a VA loan is different from the traditional loan as it is specifically designed for retired war personnel and the currently serving members of the defense and also the widows of war veterans. As an established agency of VA loans provider in San Antonio, we will share a few facts about VA mortgage rate and let you know how the interest rates are levied on the applicants. 

Low-interest rate 

The interest rate of this loan is lower than the conventional loan. This is one of the attractions of VA loans and this is the reason why so many people apply for it. Even people with a poor credit history can avail this loan, unlike regular loans. They can enjoy a competitive rate of interest which is usually enjoyed by people with top credit scores. 

The reason of low-interest rate 

The reason for this low-interest rate is that the United States Department of Veteran Affairs guarantees to pay the lender the 25 percent of the value of the home purchased. This is a great step taken by the government in respect of the defense personnel who had serviced the country in difficult times.

Loan limit 

There is a limit up to which people can take VA loans. Loans exceed this limit will require the borrower to pay up the down payment for the portion of the loan which exceeds the limit. 

Calculating the mortgage

If you are willing to know how much your VA loan will cost in terms of interest, you should look for the standard and fixed rate that is going on currently. Since the rates tend to fluctuate infrequent intervals, so getting an exact idea of this is slightly difficult. But an overall estimate is possible with a VA mortgage calculator. One thing is sure that it will be considerably lower than conventional interest rates. These things are difficult to check on your own, so an agency like us can help you with that. 

Time to apply for it 

There is no ideal time to apply for VA loans. The elements that affect the interest rate of the VA home loans are varied in numbers and therefore no hard and fast rule is applied in this field. You should contact an experienced and qualified lender in the process of obtaining a VA loan. It is better to know in advance if the interest rate is up or down so that you know if this is the favorable time to apply for it. No matter in whatever time you take the loan, you are surely going to pay a little less than the traditional borrower and it will be financially favorable for you. So, the flexibility of this VA loan is what makes it extremely appealing for people. 

Why us, Security America Mortgage?

If you have long been dreaming for a home, then your wait is over! Call us at 888-295-4055 if you are defense personnel and awaiting a VA mortgage in Houston. We will get you through the process in a hassle-free manner. A lot of paperwork is involved in the process and considering your busy schedule, it may not be possible for you to manage it without the help of an agency. 

We are a VA approved lender so you can rely on us. We are authenticated and have a lot of experience in procuring VA loans for people.