VA construction loans may be the best of the home loan benefits that veterans can receive. Especially disabled veterans can design a house which matches their needs. A VA construction loan typically allows for a zero down payment, meaning eligible veterans can finance the building of a new home without putting any money down upfront. And there's no private mortgage insurance. This is because, as with all VA home loans, the U.S. government guarantees a portion of the loan to the lender, eliminating the need for a down payment. There is typically a funding fee of 2.3% for first time use of the benefit of 3.6% for subsequent use. The funding fee can also be financed into the loan. However, if the veteran has a service connected disability OR a Purple Heart, the funding fee is waived. In addition, the funding fee can be reduced with a down payment of 5+%, or 10+%. Take a look at these flyers and let me know if you have any questions.
