USDA No Down Payment New Construction Loan UPDATES!
Since we began offering the USDA No Down Payment Construction to Permanent loan program we have received tremendous interest and I just wanted to take a moment to quickly share our newest updates and some reminders.
However, before we get started, don’t forget to take advantage of our Second Chance Service which is a great way to get access to an expert second opinion and can be especially helpful for those recent loan denials or if you are just in need of guidance on how to make the most out of your home loan qualification.
Construction Loan Highlights
• In addition to our existing USDA construction to permanent loan program, we are now also able to work with VA construction loans as well!
• There is No Down Payment requirement for both USDA and VA new construction loans!
• Builder approval is required under both programs
• Building can occur on land that is already owned by the borrower or on land being purchased through the construction loan.
• Closing occurs first and then the construction phase begins after.
Eligible Property Types:
• USDA and VA will require that the borrower occupy the property as his or her primary residence
• While Single Family Residences continue to be eligible, we now also offer USDA and VA No Down Payment construction loans for both Manufactured and Modular homes!
• However, remember that when working with manufactured or modular homes, those respective dealers also need to gain the appropriate approvals.
• While many banks and credit unions require a 20% down payment or more on their construction loans, when working with USDA and VA new construction programs there is NO Down Payment required, but potential homebuyers must still be prepared for any applicable closing costs, deposits, and appraisals.
• Minimum credit conditions will apply, but USDA and VA both provide for flexible credit qualifying which provides an alternative to the traditional construction loan bank requirements.
Don’t forget! Metroplex Mortgage Services is both a USDA and VA approved lender licensed in Florida, Texas, Tennessee, and Alabama and we are here as a resource to help and answer your USDA and VA new construction questions.
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