Q. We are trying to purchase land to build a home on. Can we use our certificate of eligibility to get a loan for the construction of the home? We are already aware that we cannot use it for the land itself, but I keep seeing differing things about the construction of homes. Can someone clarify this with sources that are recent please?
A. No.
You first would have to get approved by a VA lender for a mortgage.
Then the bank would issue a construction loan, and you would have to use one of the bank's approved builders. After the house was built the construction loan turns into the VA mortgage loan.
You first would have to get approved by a VA lender for a mortgage.
Then the bank would issue a construction loan, and you would have to use one of the bank's approved builders. After the house was built the construction loan turns into the VA mortgage loan.
Can a VA home loan be used for the construction of a new home?
Q. We are trying to purchase land to build a home on. Can we use our certificate of eligibility to get a loan for the construction of the home? We are already aware that we cannot use it for the land itself, but I keep seeing differing things about the construction of homes. Can someone clarify this with sources that are recent please?
A. Yes, you can absolutely use your VA mortgage guaranty against a home construction loan. We built our house using my VA mortgage guaranty with said loan.
How do I find out how large of a VA home loan I will qualify for. What is this amount based off of?
Q. Is credit at all a consideration? How long does it take to get a certificate of eligibility?
A. you go to a lap approved VA lender give them your income, tell them your monthly debts and they can calculate it. (I think the VA lenders who can do their own paperwork is called lap approved, that could possibly be the FHA or some other gov loan, but get one oked by the VA, which makes the loan process so much nicer). I think it's a payment of about 26% of your gross income (before taxes) for the house payment and 41% of total income for all payments including the house payment, or right around those numbers. You should be able to get 0 down. Any short term debt that will be paid off in around 6 months or less they won't count towards the total debt. There is an interest rate that the VA gives thats been a tad better than conventional lately, hovering around 6% last I looked.
You can use this site to calculate payments on certain amounts at certain % rates.
http://www.mortgage-calc.com/mortgage/simple_results.php
You can use this site to calculate payments on certain amounts at certain % rates.
http://www.mortgage-calc.com/mortgage/simple_results.php
Do I have to have good credit to be approved for a VA home loan?
Q. I dont know my exact credit score but Im sure my credit would be considered poor. I looked at the VA website FAQ page and elegibility requirements and it only talks about military requirements not credit. Has anyone gotten a VA home loan with poor credit or know of someone who has? Or does anyone have an intricate knowledge of the inner workings of VA loan approval? Thanks.
A. First...the VA does not make Loans...
They only Guarantee part of the Loan...
You must obtain an Eligibility Certificate from
the VA...then go to a Bank or Lending institution
and fill out their paperwork...for a mortgage...
If you have BAD Credit they will not give you
a Mortgage...
They only Guarantee part of the Loan...
You must obtain an Eligibility Certificate from
the VA...then go to a Bank or Lending institution
and fill out their paperwork...for a mortgage...
If you have BAD Credit they will not give you
a Mortgage...
How to get another copy of my Va loan certificate?
Q. I have lost my certificate and is there another way of getting another one or does the VA have it on file?
A. Get it from your lender - lenders have access to the Automated Certificate of Eligibility (ACE) system. ACE is Internet based, and the application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Otherwise, complete VA Form 26-1880 and submit it to the VA Eligibility Center with the appropriate documentation required on the form.
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