Quote:
Originally Posted by Eaglewings1
Hi,
My husband is a Veteran & through him we are eligible for a VA loan. We are hoping to have a home build in upstate NY however I am not sure if VA loans allow this. Does anyone have any experience with a new build with a VA loan? Was it a hard process? So far the builder has said we will need to have 5% in order for them to start building. Which confused me since VA loans can be 0 down.
I look forward to your responses.
Thank you,
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I have. It was easy. On new construction tract homes, you don't close/pay until the home is built, so the process is basically the same as an already built house. The house is built at the time the VA loan finalizes. You can legally walk away once the house is built and not buy it, which might by why your builder wants money down- to minimize the risk you will walk away. This could be a local builder issue, and my guess is that it has nothing to do with the VA.
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