Is there a way to use a VA loan for home construction?

Yes, but not in the way you envision. VA will only do a permanent or "take-out" loan. You will need to arrange for the construction funds with a construction loan from a lender that specializes in construction financing. Part of their approval will be the requirement that you have in place a commitment for a permanent loan, such as the VA loan. Work with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

You cannot use VA for the construction part... but you can once it's finished.. But as Phil pointed out, you will need to put as much as 20% into the construction part... Keep in mind that if you purchase a new home through a subdivision builder, they will usually just take a deposit, and build the home on their dime.. Once it's completed, then you go through the mortgage process.. so if you're looking to build a standalone custom home, then you will need up to 20% down.. if you purchase in a subdivision, you will only need to advance a small deposit which will be refunded to you once the loan is funded.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

I've had this question a number of times over the past few months. As Bert points out above, only for the finished home - not to buy the land and pay the contractor during construction. A construction loan is considered a fairly risky transaction as compared to a complete home. The process takes longer during which things can happen to you, to the house and to the contractor. Not to mention the possibility that interest rates could change significantly during the process. I have found very few lenders that will finance more than 90% of the cost of building a home and most are limited 80%. There are a few specialized companies that offer this option with higher loan amounts but the rate and fees are pretty high. Your best option is to find a contractor who is able to provide their own financing during construction subject to you being approved for the permanent mortgage when the home is completed. I am a local based mortgage officer (click on my name for more info) and licensed nationally and by the state, as well as trained and licensed through PrimeLending to handle mortgages in most states. The majority of my business is in SC but I frequently work with customers throughout the US and would welcome the opportunity to earn your business when you are ready to move forward. Or, I can help you find a more local loan officer at one of our approximately 200 local offices throughout the U.S. Email: pdumouchel@primelending.com or direct: 843.619.6025

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please visit my website at www.yourloanpartnerforlife.com i do construction loans linda my email is yourloanpartnerforlife@live.com

You can not use VA for the construction part.