Im not sure I fully understand my obligations as a borrower for a va new construction loan,is a 20% down payment required on my pa

Yes. and No.. VA does allow for a construction loan and VA does do 100% financing, but understand that VA does not lend money.. they only insure loans against default.. The lenders, or those with the $$$, will oftentimes have their own rules above what VA calls for.. it's these "Overlay's" that makes lending different, one lender to another.. This all being said, Finding a lender to do a VA construction loan is near impossible.. not impossible, but near.. I can only assume, but it sounds like your lender does not do VA construction loans, so they are asking you to put 20% down, and then once the property is finished, you apply for a VA loan to pay off the construction loan.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

William's aswer is spot on. However, if you are using a builder and they carry the construction loan, you can use a VA loan for the permanent financing and still go to 100%. The builder will typically require a deposit which varies from builder to builder. You can get your deposit back when you close on your permanent VA loan, which is what most of my clients do. This may not fit what your looking for if you are building the home yourself, but something to look at if not. Best of luck to you!Brandon BradyChristian Roberts Mortgage

From my experience, I do not know of any lenders who do VA Construction Loans, however if you can find a builder to build you a home, you can pay him off in full with a 100% financing VA loan. This is typically where you would be under contract to buy it from the builder, with a typical purchase and sale agreement. Hope this helps