Do you plan on building your dream home? If you are a veteran, you may qualify for a VA construction loan. This could help you save a significant amount of money as you build your dream house, but it is important to understand the details.

An Overview Of A VA Construction Loan 

In general, a VA construction loan has three separate parts. The first part is the cost to purchase the land, the second part is the cost to construct the home, and the third component is the bundle that gives you your final, long-term mortgage. You have the option to close on the construction process either once or twice, and you should work with a professional who can help you decide which one is better for your situation.

The Benefits Of A VA Construction Loan

There are several significant benefits that come with a VA construction loan. First, it does not require a down payment, so you don’t have to worry about saving tens of thousands of dollars before you start building your house. It also does not have a cap on the maximum size of the loan, so you do not have to worry about running into a roadblock when borrowing money; however, you still have to qualify for the size of the loan you want. You also do not have to worry about paying any interest during the construction process. 

Applying For A VA Loan

Applying for a VA construction loan is similar to applying for any other mortgage, but you will also need a Certificate of Eligibility (COE) showing that you are a veteran and eligible for this type of loan. Apart from that, you will also need to provide evidence of your credit history, prove you have enough income to pay back the loan, and show proof of employment.

Consider A VA Construction Loan

If you are a veteran and want to build your dream house, you should consider applying for a VA construction loan. It could open the door to new options that might not have otherwise been available. 

Filed under: Real Estate by Julie Woodward
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If you dream of owning a house one day, you have probably realized that one of the biggest challenges is saving money for a down payment. You have already found your dream property, but then the lender asks you to put 20 percent down, which can be tens of thousands of dollars. Fortunately, there are alternative options available, and you may be able to purchase a home for no money down.

VA Loans

One option for qualifying borrowers is a VA loan. As the name suggests, this is a loan that is backed by the Department of Veterans Affairs, and eligible veterans may be able to qualify for a home loan with no money down. You still need to have a credit score that is high enough, and you must have a solid debt-to-income ratio. You will also need to reach out to a lender that has experience with VA loans to see if you qualify.

USDA Loans

Another option that could allow you to purchase a home for no money down is a USDA loan. This is a specific loan program that is available for borrowers located in rural areas who are going to use the property for a specific purpose. Borrowers need to have a credit score of at least 620, meet certain qualifications for debt-to-income ratios, and not learn more than 115 percent of the median income in the area.

FHA Loans

While you may not be able to purchase a home for no money down through an FHA loan, this can make your home loan much more affordable, and you don’t necessarily have to be a veteran or located in a rural area. An FHA loan could allow you to purchase a home for 3.5 percent down as long as you are a first-time home buyer. You may still have to purchase private mortgage insurance (PMI) until you build up a certain amount of equity in your home, but it could make it easier for you to purchase a house for the first time.

Consider exploring some of these options if you are interested in buying a house. 

Filed under: Real Estate by Julie Woodward
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First-time buyer?
Don’t worry — your Port Aransas Realtor® will walk you through the whole process.

3 Tips for First-Time Home Buyers in Port Aransas

Your first excursion into the real estate market is exciting, but it can be a little confusing (and if we’re being honest, it can be a little scary, too).
With the right help, though, you’ll come out of it unscathed… And you’ll own your own home.

First-Time Home Buyer Tip #1: Get Your Finances in Order Before You Start House-Hunting

Order your free credit report from Annual Credit Report. Thanks to the Federal Trade Commission, everyone’s entitled to one free copy of his or her credit report every year. Annual Credit Report is the one the FTC recommends you use, but there are other services available — just be careful that you’re not signing up to pay for something when you don’t have to do so.
Start talking to lenders. Get quotes on mortgages, and compare their rates and fees.
Figure out how much money you can spend on a down payment. Typically, the more you spend on a down payment, the lower your mortgage payments will be. If you qualify for a VA loan, use it! Try to get preapproval for a loan (not prequalification, but preapproval) before you start looking; that way, you’ll know your budget and you’ll be able to find homes that really meet your needs.

First-Time Home Buyer Tip #2: Separate Your “Needs” From Your “Wants”

You need a bathroom and a bedroom, and probably a kitchen… but that’s if you’re flying solo. If you have children, you’ll have to plan for their needs. Don’t forget to think about the future, too; if you’re growing your family (or if some are leaving the nest), you’ll have to plan accordingly.
We all want a swimming pool, an outdoor kitchen, and a big, roomy garage, but unless you need these things, you may want to brace yourself; they might not be feasible when you’re buying your first home.

First-Time Home Buyer Tip #3: Let Your Realtor Do the Heavy Lifting

Tell your Realtor what you need and what you want. Make sure she knows about your budget and your preapproval status so she can find Port Aransas real estate listings that meet your needs, and set up times to go see the homes you’re interested in buying.
Remember while you’re house-hunting that great homes don’t stay on the market for long. If you find one you love, make an offer. Your Realtor will help you every step of the way!

Are You Buying a House in Port Aransas?

If you’re buying a home in Port Aransas, call us at 361-563-7788 right away. Tell us what you’re looking for and we’ll help you find it.
In the meantime, browse our Port A real estate listings in some of the most popular communities:

Filed under: Blog, Buying, First-Time Buyers by Julie Woodward
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