Looking for a VA Construction Loan in Illinois?

The VA construction loan is literally the "needle in the haystack" type loan.. I'm not saying it's impossible to find, but it will be near impossible.. lenders are always analyzing risk vs. reward.. for ZERO down construction loans, they are the most risky loan out there.. a lot can happen in the 6 months to 1 year before you actually start making payments.. you could get sick, injured, and unable to work.. you could lose your job.. or have a spouse pass away.. or the market could drop which would result in your newly constructed home being worth less than what is owed.. All these scenarios have happened to construction loan lenders in the past, which is why during the mortgage crisis, construction loans were all but eliminated.. they are now starting to make a comeback, but finding a VA construction loan.. probably not gonna happen.. I"m the preferred lender for Arizona and California. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

I know of a lender that offers VA one-time close in Illinois.

I noticed Sara Deere has a possibility for you! I have found it extremely difficult to locate any lender willing to provide a VA construction loan, much as William Acres has pointed out. As a VA lender and someone who has used the VA loan myself,I am always on the lookout for a source to point out that will do the VA guaranteed insured construction loan. Maybe they are starting to come back. I would surely appreciate it if you would let me know via my profile email if you secure someone to provide it!

VA 100% financing on a construction loan is virtually impossible to find. In theory, it exists. In practice, I do not know of any lender offering it it. Simply too much risk. Generally you'll need to do a separate construction loan, which usually is 20% down. You'll use that to buy and build the house. You'll make interest only payments on the loan until the home is done. Once completed, you pay off the loan with whatever long term loan available to you. In this case, a VA loan. So getting away with building a new construction home with zero down is unlikely to happen. Sorry... For VA loans in MN, WI, SD, visit me at www.VAMortgageMN.com