VA Construction Lenders ⭐️ 855-956-4040 ⭐️ Building a Home with VA Loan

Hey, VA Nation, Jeff Newton here with National VA Loans. The context of National VA Loans is 855-956-4040. Check us out online at nationalvaloans.com. Of course, I'm here today with my co-host, Navy veteran Josh Buffett. Josh, how you doing? I'm doing great. And Jeff, I think today we're going to talk about VA construction loans. All right, guys, we're back. I like that transition. That looks good. You know, we've had a few changes this time or this week. It's been, we've had some technical difficulties over the last couple of days. And so we've added a new thing. We've got microphones, hopefully you can hear us really well. We decided we needed hair in somewhere in these videos. So Josh is growing out the beard. Yeah, I mean, you know, a week not doing videos, I figured, heck, might as well just leave the razor, leave the razor out. Well, now we just need to wrap it around and get a little longer. Yeah. So in three weeks, and just so you know, I'm trying to grow one too. It's just a little light. I'm a blonde. Well, I used to be a blonde. And now I think I picked the wrong time of the year to do this this summer. Yeah, well, a lot of things you do make no sense. I feel like if I get started now, by no shame November, I'll have a beard. A fu manchu, I'm having a feeling. All right, well, let's get into it. Let's get into the VA one time close construction, because it's an awesome loan. And the one time close aspect is the best part about it. We get a lot of questions, you get a lot of questions, especially being a veteran. Right. About this one time close loan and how it works. Actually, a lot of people just don't know. Oh, I have no clue. Most of the veterans I talked to didn't weren't even aware that they could do a one time close zero down loan. No, they didn't know that was even possible. And don't even get me started on real estate agents. They have no clue about this product. I mean, it's our job to educate them on this product. But this VA one time close most people I would say as veterans out there have no idea about this product. Now we are doing one hell of a job of educating and helping to get that information out because it is a great loan. So let's let's kind of get into what you can do and what's allowable. And I'll just start with with the type of residence you can build any kind of single family home you want. Even a barndominium. I mean, that's been added into the whole mix of the one time close. Jeff, can you build a duplex? You cannot build a duplex. It's a single family residence. You cannot build and believe me, we get people asking for that all the time. I know. And I don't blame them. If it was me and I was a veteran, you're telling me I can build a fourplex right with no money down and I can rent three out and pay my family. I'd be all over it. Too easy. Yeah, too easy. And unfortunately, that's not available right now through the VA. Maybe one day it will be a nice deal. But any any single family residence at one point, they didn't even allow the barndominium and then they become more, you know, it's a more popular format for a home. They are cool looking man. They are good looking. They're done right. Yeah, yes, they're super nice. So that does allow for that couple of program highlights that that we really like and we're going to go kind of broad stroke here because there is so much information on the VA one time close. But one of the program highlights that I really like and people have a lot of questions about is what about the land? That's a great question because some people come to us and they already have the land that's already been purchased. That happens a lot. It does happen a lot. And then other people come to us and say, well, I don't know where the land's at or how I'm even going to get it. And so the beauty of it is, is this this loan does solve for both of those issues or both of those situations. So let's just talk about if I had the land first, Jeff, how would that loan work? OK, so let's say you've got a land or you bought the land and it's $100,000 and you got $100,000 loan on the land. What we're going to do in the during the VA one time close process, we're going to get the construction. We're going to know everything we're building and then they're going to when we go to close that loan, they're going to pay off or roll in the current land loan that you have and get rid of it. What if I own the land outright? Then you're awesome. I mean, that's number one. If you own land, that's great, because guess what? They're not building more land. Yeah, I mean, except for in Dubai, I think. So that just becomes equity on my on my total loan. It does property. It does become equity on your property, which is huge. Right. OK, but if I don't own the land, I can still get zero down buying everything together, buying it all together. And that's one thing. We just got that call just a couple of days ago. In fact, hey, look, I found a piece of land I love. I know exactly what I want to do with this land. I want to build a house on it. How do we do it? We're like, well, this is perfect. We just roll it all together. So we got on the phone with the real estate agent. We got on the phone with the borrower, the veteran, and we worked it all out. And now they're getting plans and they're putting in offers on the land. And it makes it really simple because it is one loan. It's one time, one close, one loan. That's it. Now, is there a is there a loan limit? There is a loan limit. You know, VA got rid of the loan limits a long time ago, as far as what you can do, what you can borrow. Now, the VA one time close construction, at least the investors that we utilize, it has a loan limit of 1.5 million, which is a whole hell of a lot of house. Does that depend on any area or is it? No, it's pretty much across the board. So no matter what state or area you're in, it's going to be 1.5. Correct. And now, do I see that changing over the terms? Yes, I do. We can see it. Like every other loan limit has in our industry. It's all gone up. They never go down. In fact, the VA one time close at one point was at a million, so it's continually gone up. It's kind of like the VA renovation for all you renovation folks out there. That VA renovation loan, you could originally only do $50,000 for the reno work. Now it's up to $200,000. So things change and they get updated. One of the things that I know that you and I have talked about that we really like about this one time close is not only does it encompass your land, your build, all of that, but it also builds in your piece during construction. Let me say that again. It builds in your payments. So that means it's just added to the total loan amount at the end. It's still 100%. And it's still at 100%. And so typical construction period, depending on where you're at, depending on the contractor and the builder is between 8 and 10 months. So what the loan does is it builds in your, not only your interest payments, but also your principal payments into that loan. Now, is the interest rate the same throughout the whole process? Absolutely. It never changed. And when it closes, it's still that same rate. It's still going to be at that same rate. Well, when it closes is at the very beginning, that's when it closes. So then it's that same rate. Now, Jeff, I got a question. I closed at this rate. Is it eligible for an EARL later on? It's kind of like we're right here. And guys, listen, we don't talk about any of this before we get on a new video. We just know these programs really well and we know each other pretty well. But yeah, that's the one cool thing is that's why I wanted to stress that it pays during the process, it pays your principal and your interest. So the VA has got a guideline in there for the VA EARL, the Interest Rate Reduction Refinance Law. And it says you have to be 210 days out from when your first payment was made. Which is about seven. About seven months. Well, building time. Six payments. Yeah, pretty much. Building time is going to be between 8 and 10. Those payments are going to be made. So let's say we close your VA one-time closed construction at 6.75% today. And the build job gets done in 10 months, but rates now are at 5.5. We're going to go in and do a VA EARL for you. You don't have to get a new appraisal. You don't have to supply docs. You don't have to do any of that. It's pretty nice, easy. Check out VA EARL on our site. Yes, and then you'll understand how simple they really are because they are. And that's I-R-R-L. Yes, or I-R-R-R-L. Interest rate reduction refinance. People add Rs all over the freaking place on these things. Yeah, it's one of those. But it's an awesome side piece to the VA one-time closed. Because if it wasn't making those payments during the construction, you wouldn't be able to interest rate reduce it right away. Since it is, you can't. Which is awesome. And one of the things that we love most about the VA one-time construction. Oh, I shouldn't say that. The thing I love most about the VA one-time construction is it's one close and you can actually build on it. Have you tried to build a house? Have you tried to do construction? No, I have never built a house. That's one thing I haven't done is I've never built a house. It seems daunting. I've heard of a lot of people that get the worst over building a house. I can only imagine. And especially because it drags out for 8, 10, 12 months. And then you still have to do the in-loan. Well, this, the in-loan is done in the beginning. It's an awesome process. You know, a lot of times you worry. I mean, in fact, us, when I look at... Oh, I forgot we have a mic now. Yeah, you be careful. I talk with my hands. But, you know, I worried about what if you had a bankruptcy a couple of years ago? Can you do this loan? The answer is yes. What if you have subpar credit scores? You're, you know, you're a 620 or 640. You're not the 780s. The answer is yes. You can still qualify for this loan. And it's, I mean, it makes it accessible to all of our veterans and active duty out there. And it makes it easy to use. Of course, any information you want on the VA one-time close or any VA loans, you can give us a call at 855-956-4040. Any of our VA specialists can answer these questions for you. And really get more into the heart of it. Because there are way more details. Oh, yeah. I mean, we could make this thing four hours long if we really wanted to talk about it. Yeah. I mean, we're trying to do it over. Yeah. We'd have to have a bottle of horse soldier whiskey and we'd sit down and we'd have a cocktail or two while we discuss this. That is good. It is really good whiskey. I don't even drink and I've tried it. And it's really good whiskey. So I enjoy it. But there is a lot to these loans. And it's hard to take everything from one video or from different information you find out there. A lot of you veterans out there that have watched our videos before, you know that we've said many a times, not all lenders are built the same. And they're not. Not all lenders do this. I would say only about a small percentage, maybe 5% to 10% of lenders or investors out there actually do this. It might be lower. It probably is. Well, I know what number is lower. The ones that know how to do it well. That's way lower. We ran into some nightmares. Well, and we hear from our clients that call us and say, hey, I was dealing with XYZ mortgage entity. And they just were taking me down all these different ways and it wasn't working. And I could tell that they didn't really know what they were doing. They were like learning on me. So, I mean, no one wants to experience that. I mean, there's a few things I don't want you to learn on. I don't want open heart surgery. I don't need it. I don't need a trainee coming into that. Or your VA construction. Or your VA construction loan. I mean, there's just so many moving parts. And that's where you need a specialized VA specialist team that knows what they're doing. And that starts with the loan officer. That starts with the processor. And it runs all the way down. And knowing those people are in place to help move you along, because that's one thing that we see a lot of times too, is these loans will drag. And why do they drag? Because you have so many damn moving parts. There's a lot of third parties. Yes. I mean, if it was just me and you, we could knock this thing out quick. But we're the band leader. We're orchestrating these third parties. And if you're in it with us, then that's what we're going to do, is we're going to orchestrate those third parties for you to make sure that we close your loan in time. Now, another question we get a lot is, how quick can we close on a VA one-time close? It's a great question. I don't like my answer most of the time. I wish there was just one box answer you could tell us. I do too. I would love to be able to say, yeah, we'll close this thing in 45 days. We'll close this in 60 days. But the truth of the matter is, it greatly depends, I hate to say it this way, but it greatly depends on you. And every situation is different as well. Yes, for sure. But it greatly depends on you, and it greatly depends on your contractor and your building. There's certain specific forms that the VA requires. They're not hard, but I know that contractors and builders, their best attribute is not paperwork. Just like it shouldn't be. Real estate agents? Yeah, I want their best attribute to be able to build a house and to be able to build it with the right price. So sometimes those things can drag. We are very good at building senses of urgency because our job every day is to make things happen, right? It's not to come in here and do this. It's to make things happen. And these loans require somebody that can make things happen. And you don't want to have anyone else working on your loan other than that person that knows those ins and outs and is willing to push and really go and fight for you to get the deal done. And that's just really one of the most important things when it comes to the VA one-time close or really any loan for that matter. But the VA one-time close has got a few intricacies into it. So if you've got questions about it, obviously reach out. Oh, definitely. 855-956-4040. We're always happy to answer any possible question we can on the VA one-time close or any VA loan for that matter. Another question that we get that I want to hit on real quick is VA interest rates on the one-time close. Most people think rates are going to be extremely high or way higher than what you're going to see on a regular loan. The fact of the matter is, they're not. It's kind of, it's almost a little off-putting really because it's like, why aren't they higher? Because there's so much more work that goes into it. But the fact of the matter is, is there about the same or roughly the same as what we see on a regular VA purchase or VA refinance? Maybe a quarter difference or the same qualifications. It is the same qualifications, which is, again, isn't that kind of odd? I mean, it's a nice benefit. It's another great VA benefit. I'll tell you what, the more we do VA loans, I mean, and I say that, but we've been doing them 20 plus years. But just the more deeply you get into them, you just learn about some of the amazing benefits that are out there for veterans and active duty service members. Not only to build a home or do a renovation, but to own more than one home. We're doing a guy, we're doing a loan right now for a gentleman that's buying his third home. He's got the other two still on VA loans and they're great rates. He's got them rented out and you can do that. Which is another video. Sorry, folks, I apologize. This is one time close. All right, we've answered quite a few questions. We've talked kind of broad strokes. But again, if you have more questions, you can hit us here on our YouTube channel, ask the questions here. We respond to those right away. Or again, check us out at nationalvaloans.com or give us a call at 855-956-4040. Any of our VA specialists will help you. But if you want to talk to Josh or I personally, just say, hey, let me talk to Josh or hey, let me talk to Jeff. They'll get us to you, all right? Or they'll give you our cell phone numbers. I mean, believe me, you can have them and call us. We use those things all the time. So they'll get you with this. But any of our VA specialists can help you. Again, subscribe. I think we, Jason told us where it's going to be, but it's going to be right here in one of these four here. Right there. Somewhere. There. There, there it is. So subscribe and you can stay current with all the up-to-date information for any VA loan out there, any VA, any type of VA construction, one-time flows, or the renovation loan. And of course, just our VA purchases and refinances. Which by the way, right now is a great time to refinance. Just letting everyone know. Anyway, it's 855-956-4040. We thank you guys for your service. Thank you for what you did for our country. We know we wouldn't be here without you. Josh, thank you for your service. And you were just complaining the other day. On my board in my office says, today, thank a veteran. He comes in. He's been here two minutes. You haven't thanked me yet. I'm like, bro, get out. Was it for other people? Yes, it is for us. It's for you. We thank you. And I thank you too. All right, guys. Thank you so much. 855-956-4040. Give us a call. We'll be happy to answer any questions you can. God bless.