Using a VA Loan to Build a New Construction Home
Hey everybody, Shelly Willis here with Cannon Builders Dream Team. I wanted to share with you guys a little something. I wanted to share with you guys a little story. I just got off the phone with somebody, and his question to me I had actually not heard in the last 16 years, and I felt it very interesting. I wanted to share with you guys his question.
So, he called me wanting to know if we had an existing property in one of our neighborhoods, and when I shared with him, “No, I’m sorry, unfortunately we do not have anything existing in that particular neighborhood, but I’d be more than happy to build you something brand new from scratch.” He said, “Well, I’m using my VA loan, so I will not be able to build.”
And I was like okay, hang on a second, maybe I’m not understanding exactly where this is going. And so I said, “Yay, you’re using your VA loan. What a great entitlement that you have. That is a great loan, 100% financing. And thank you so much first of all for your service, we greatly appreciate it.”
And he said, “Yeah, I would love to build with you guys, however, again, I’m wanting to use my entitlement of my VA, and I know that I cannot do that building.”
Well, what I realized what he was talking about was a construction loan. And he was right, you cannot build brand new with a VA. VA does not honor a construction loan. But, when you’re building in a community like ours, you do not need a construction loan. It’s completely a different scenario. So, you can use your VA entitlement. And when I explained that to him, and I gave him a number to one of our lenders who specializes in VA loans, he was super ecstatic, and I thought to myself my goodness, if he is feeling this way, if he thinks that he cannot use his VA loan for new construction, who else out there feels that way, or is thinking this?
So, I just wanted to get on here and share that with you guys. So, VA is an amazing program. And you definitely should take advantage if this is something you are entitled to. We are VA compliant here at Cannon Builders. I can’t say that about every builder, but we are VA compliant, so we can honor your VA loan. And unfortunately this gentleman just had some wrong information, and we scooted him along to one of our wonderful lenders, who is going to get him qualified, and give some more information on the VA process.
But, again, just wanting to share that with you guys because I thought wow, if he’s feeling this way, who else out there has a VA entitlement that they would like to use, but feel that they can’t?
So, again, hopefully this will help you, or somebody that you know. If you have any questions we’d be more than happy to get you in touch with our preferred lender, and let them give you some more information. We really appreciate our veterans of course, and we love when we get to help anybody, but especially helping our veterans is definitely a plus.