VA loans are my favorite. There are so many ways to get a VA loan to the closing table where other types of loans might not work.
The Scenario:
James was referred to me by a banker friend for a VA construction loan. James is currently on active duty in the Army and was PCS’ing (permanent change of station) to a new base in a new state. He wanted to build a new home for his wife, five kids, and himself, and was in a hurry.
James already owned a home in his departing state that had a VA loan on it, but we were able to structure his new loan with zero down using bonus entitlement. In addition, we were able to use the fair market rent for his departing residence to ignore the PITI on that home so he could qualify for both homes, despite not having renters lined up yet (or even sure if he was going to rent out or sell it).
We coordinated with a modular home retailer and closed his VA one-time-close (OTC) construction loan in 40 days. The retailer was able to order the home from the factory and get started on site prep right away, and James moved into his completed home with his family less than 4 months after closing.
Why this might matter
Some lenders don’t love VA loans. Most banks and credit unions do construction lending very well, but few will do VA OTC construction loans.
If you run into a VA client who falls outside of your guidelines or needs a construction loan, I may be able to help.
Work with me
Do you have a deal that you think might be approvable but doesn’t fit in the box at your bank or credit union? Reply to this email or call/text me at 616.298.2743 for a same-day answer.
One case study per week showing scenarios we’ve been able to help with