Depending on your budget and location, buying your dream home can be challenging. Sometimes, the best way to get a house that meets your exact needs and preferences is to build it from the ground up. Enter construction financing.
Military servicemembers have three options for obtaining a construction loan: paying cash, builder financing, and lender financing. For many, paying cash is not a feasible option. And builder financing can become problematic depending on the contractor you’re working with, and often ends with hidden fees. Lender financing is usually the best option for military servicemembers, but finding the right construction loan has not always been an easy task — until now.
AAFMAA’s new Construction Advantage One Loan℠, introduced in 2021, can provide the financing needed to build your perfect home. This new VA construction-to-permanent loan program is designed exclusively for servicemembers and Veterans to cover buying the land, constructing the home, and getting a permanent mortgage for your home — all with a simple one-time close construction loan.
How Does the New Construction Advantage One Loan Work?
The Construction Advantage One Loan is available to active duty servicemembers and Veterans who have at least a 620 credit score. Like any VA Loan, the home can only be one unit and must be a stick-built, new manufactured, or a modular home. The home must also be used as your primary residence.
The Construction Advantage One Loan is a VA one-time close construction loan, which means you only need to apply once, saving you both time and money. Single-close construction loans let you apply at the same time for both the land and the house, and you may be able to finance up to 100%. Just like with a VA Home Loan, there’s no down payment needed, and you don’t make any payments until construction is finished.
Construction is paid using an escrow department that works directly with your builder. However, the builder must provide a VA Builder’s warranty on the home and provide periodic inspections of the home while it’s under construction. You also must close on the loan before construction can begin, which takes about 60 days to finalize. The single construction admin fee includes construction interest, draw inspections, closing coordination, construction underwriting, and title updates.
Speak to a Mortgage Expert About Our Construction Advantage One Loan
The Construction Advantage One single-close construction loan from AAFMAA Mortgage Services LLC (AMS) lets you buy your lot, build your home, and finance your house with one easy step. Call 844-422-3622 or contact one of our Military Mortgage Advisors online today to learn more about our construction loan options, including the Construction Advantage One Loan.