HomeLander Mortgage

Tag: va loans

  • Yes, We Have Construction Loans for Veterans

    Yes, We Have Construction Loans for Veterans

    Veterans who retire from military service, active duty service members, and members of the National Guard and Reserves often can qualify for VA Construction Loans to help them build and finance a home from beginning to end. The VA Construction Loan is also known as the VA One-Time Close Loan (OTC) for a reason. This type of loan product allows qualified borrowers the ability to construct their own homes utilizing an all-in-one lending product. 

    The VA One-Time Close Construction loan program delivers interim construction financing, land purchase (or payoff), and the permanent mortgage loan – all wrapped into one. A single loan offers both the construction loan and the permanent mortgage within a single loan closing. This type of loan also allows veterans to lock in their interest rate at the time of approval before construction begins, and this rate is good until it converts to a permanent loan.

    Borrowers only need to qualify once. Instead of providing qualification documents such as pay stubs and tax returns twice, with this type of loan, veterans only have to prove that they can pay the construction loan and mortgage once.

    Importantly, since conventional mortgage loan closing costs can be a significant expense to borrowers, the ability to just close one loan saves thousands of dollars having to close a second time. A traditional construction loan usually requires two sets of appraisals – by separate appraisers. With a one-time close construction loan, one appraisal saves the borrower money. 

    In summation, since the permanent loan is closed before construction begins, there is no need for re-qualifying for financing when it comes time to move on from construction to the permanent loan. This also means that there is no need for re-appraising, there’s only one underwriting process, and one set of closing costs. As such, this loan product provides interim construction financing, lot/land purchase or payoff, and the mortgage loan all in one.

    In order to obtain this type of loan, qualifying veterans much follow this Loan Process:

    1. Make contact with VA Construction Loan Advisors to determine the best home loan for individual needs.  
    2. Complete an application
    3. Receive a Pre-Approval Letter
    4. Select a builder that is then approved by the lender
    5. Determine where to build
    6. Create the Construction Contract
    7. Submit to your Loan Advisor
    8. Processing/Underwriting
    9. Appraisal
    10. Project Review
    11. Final Loan Approval

    Other advantages of a VA Construction Loan include no down payment for qualifying veterans who have at least a 620 credit score, no required private mortgage insurance (PMI), 100% financing, low fixed rates locked for the life of the loan, and no mortgage payments while construction is ongoing. 

    As the VA does not lend directly, veterans need to find their own lender. HomeLander Mortgage is a one-stop-shop for all mortgage needs – including the VA Construction Loan. With so many advantages to this type of loan, HomeLander Mortgage can help and guide veterans every step of the way. Schedule a call to begin the process at www.homelandermortgage.com

  • What You Need To Know Before Renovating

    What You Need To Know Before Renovating

    Home renovation loans, also known as Home Improvement loans, are a way for homeowners to finance their fixer-uppers or older homes that need updating. These loans cover the entire renovation project – and yet many potential borrowers don’t know that they are an option – let alone how they work.

    Whether it’s a kitchen or bathroom renovation project, adding on a home office, or installing a new roof, major home improvements require a sound budget. Home renovation loans provide funding for renovating, remodeling, and repairing a home. It can be thought of as a mortgage that includes extra money for home improvements.

    Borrowers who may benefit from a home renovation loan are contemplating home improvement ideas.

    • Are you looking to modernize a kitchen or bathroom(s)?
    • Are you looking to remodel a home to fit your lifestyle and family needs?
    • Are you wanting to add one or more rooms to the house?
    • Are you contemplating the purchase of a home with a low asking price but in need of serious work?

    Additionally, these types of loans give more homeowners and/or borrowers more control over building equity. By making improvements and substantial upgrades, these projects will improve the value of the property in the long run.

    Some types of home renovation loans available include conventional renovation loans, FHA renovation loans, USDA renovation loans, and VA renovation loans.

    Conventional Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
    • Closing costs can be rolled into the loan.  Ask us how. 
    • 97% financing available
    • 620 minimum FICO score required

    FHA Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
    • Closing costs can be rolled into the loan. Ask us how.
    • Up to 96.5% financing available
    • 620 minimum FICO score required

    VA Renovation Loans at a glance: 

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI payments are due during the renovation period.
    • Closing costs can be rolled into the loan. Ask us how.
    • 100% financing available (90% on refinance transactions)
    • 620 minimum FICO required
    • Repairs must be non-structural

    USDA Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI payments are due during the renovation period.
    • Closing costs can be rolled into the loan. 
    • 100% financing available
    • 620 minimum FICO score required

    While they are similar in that banks and other approved lenders issue them, they differ greatly in type and who qualifies.

    The Federal Housing Administration insures FHA-Insured Loans. Though the FHA does not have income requirements, borrowers need to prove their income, and there are limits on loan amounts. 

    VA Loans are available to veterans who have served or are currently serving in the armed forces, reservist/national guard members, or an eligible surviving spouse. The Department of Veteran Affairs guarantees these types of loans. Borrowers must also have a Certificate of Eligibility (COE). The COE proves that the applicant officially meets the minimum military service requirements. This type of loan is only available through certain VA-approved lenders. 

    The U.S. Department of Agriculture (USDA) loans are for homes in rural areas, though many other suburban communities and locations are also able to qualify. The loan is subsidized through the USDA. Borrowers must demonstrate stable income and the ability to make payments without incident for at least 12 months based on assets, savings, and income. 

    HomeLander Mortgage will be there every step of the way to help borrowers determine which type of renovation loan is appropriate to their budget, needs, and qualifications. Schedule a call to begin the process at www.homelandermortgage.com