My wife owns our current home in the heights bought before we were together. I'm a veteran. We found a lot in Cypress to build on. Is it possible to do a local $0 down lot + construction loan, pay interest only during construction then do a VA permanent loan to encompass the total sum for which we'd be guaranteed & pre-approved? TIA.

Yes Contact info is in my profile

You can actually get a one time close with a VA loan with 0% down. One time close limits your expenses, lower your interest rate risk and you only have to qualify once. We do quite a few of them. http://va-construction-loan.com/

SoTheySay,


Just curious, what made you skeptical? It is interesting that agents are often skeptical of VA financing but not sure why as it is actually one of the easier loan programs to qualify for (and they perform quite as well). And if done correctly, the non allowable are no issue at all so the sellers do not have to pay a dime more then any other loan.

Jay@AgsReward.com said:

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SoTheySay,


Just curious, what made you skeptical? It is interesting that agents are often skeptical of VA financing but not sure why as it is actually one of the easier loan programs to qualify for (and they perform quite as well). And if done correctly, the non allowable are no issue at all so the sellers do not have to pay a dime more then any other loan.

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I'd like to hear as well. I had a listing agent call me today because my borrower is going to be on a VA loan and the seller didn't like the idea of selling to them. To quote her follow up email "VA loan is very much not attractive to seller, especially $0 down."

I had just never done a VA loan at that amount. (Over $500k) There really wasn't a reason. I guess I just didn't know what to expect.

And probably a little something to do with the fact that my client joined Costco to get the loan. I'm going to have to double check that - it may be that he was a Costco member but had to join something else.

I hear this a lot as well. With VA rates around 3.25% why not put nothing or very little down. Does not mean the borrower has nothing to put down or is a bad borrower.

Jay@AgsReward.com said:

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I hear this a lot as well. With VA rates around 3.25% why not put nothing or very little down. Does not mean the borrower has nothing to put down or is a bad borrower.

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Where are you seeing 3.25%? Or was this pre-election? We are doing VA loan and rates have been around 3.75% since then.

Could be his bank as he is a lender......

cagwell10 said:

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Jay@AgsReward.com said:

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SoTheySay,


Just curious, what made you skeptical? It is interesting that agents are often skeptical of VA financing but not sure why as it is actually one of the easier loan programs to qualify for (and they perform quite as well). And if done correctly, the non allowable are no issue at all so the sellers do not have to pay a dime more then any other loan.

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I'd like to hear as well. I had a listing agent call me today because my borrower is going to be on a VA loan and the seller didn't like the idea of selling to them. To quote her follow up email "VA loan is very much not attractive to seller, especially $0 down."

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Did they put down any earnest money since no down payment? Did they ask for any closing costs?

My borrower did end up getting that contract. Yep, put down appx 1% earnest and $150 option fee. The only seller concessions are title policy, nothing in addition to that.