VA Loans for New Construction: What You Need to Know

Most veterans and current military members use VA loans to buy pre-built homes, but those homes aren’t always perfect. Sometimes, you just need to build things from the ground up and using a VA loan in Pueblo is a great way to finance the build. Here’s what you need to know about using VA loans for construction.

You Must Use an Approved Builder

To use a VA loan in Pueblo to build a new house, you’ll need to partner with a VA-approved builder. Your local VA office can help you find a suitable contractor. This helps ensure that the build meets all VA requirements. If you’re handy, you may be able to help in the construction provided your efforts are up to the current building code.

Loan Requirements Vary By Lender

The VA guarantees the loan, but they don’t set the loan requirements. Your lender is free to set a minimum credit score or set an interest rate for each construction loan. They’re also able to screen applicants more thoroughly to make sure you’re able to pay back the loan.

Payments Don’t Start Until the Work Is Done

VA loan payments for new construction won’t start until construction is finished and the house is ready to live in. You’ll have the remaining number of years of the loan term to pay off the loan in full.