Bank Of America Construction Loans Article

When you first hear about VA construction loans, you may think it means construction loans in Virginia which isn't the case. VA construction loans aren't about a state, but are loans for veterans of war. VA loans were originally put into the GI Bill or Rights president Franklin D. Roosevelt started. This bill of rights helps people who served in a war so they get extra privileges. It's a thank you for all of their great service.

The main difference between VA construction loans and regular construction loans is the down payment. Most people have to pay a large down payment when applying for a construction loan. This is usually 3% or 5% of the full loan amount. VA loans are different since they allow a veteran to get a loan without having to pay a down payment. This provides more opportunities for them to build their own home. Not everyone has the money needed to afford a down payment. VA loans help by eliminating this requirement for people who served their country in the armed forces.

There are some restrictions when it comes to VA construction loans, however. You can't just be in the army and expect to reap the benefits of this loan. For example, you need to have served in active duty. You can't have a dishonorable discharge under your name. You also need to have served for 90 days in wartime or 181 consecutive days in peacetime.

There are several other requirements for you to be eligible for this benefit. If you're considering a VA construction loan, you should contact a lending company who offers this option. They'll be able to run you through all of the qualifications to determine if you can take advantage of these provisions.

These VA loans are very helpful for people who qualify. It helps them buy or build their own home when they may not have been able to otherwise. This is just one of the many ways the government has stepped up to make life better for people who've served their country in any one of the many recent wars.

If you were in the forces, definitely look into getting VA construction loans. They're very helpful and will give you a better chance to own your own home for the first time.