How to Build a Modular Home in Michigan with a VA Loan
Building your dream home is a possibility with a VA modular home loan. But it isn’t always an easy road.
This no-down payment program allows qualified borrowers to use their VA entitlement to obtain a mortgage for new construction. The issue is that it can be challenging for VA borrowers to locate a lender willing to issue a construction loan. The VA doesn’t actually make home loans; rather, it basically insures them. It’s up to individual VA-approved lenders to determine what kind of loans they’ll issue.
What’s increasingly common is that veterans need to secure a modular home construction loan from a builder or a local lending institution. As the home building process wraps up, qualified borrowers can then refinance that short-term construction loan into a permanent VA mortgage.
Getting a Modular Home Construction Loan
Because it’s tough to find VA loan lenders out there willing to pay the up-front costs of construction, many veterans wind up using a home builder or a local financial institution. That can present hurdles like a down payment, which may be required to secure a construction loan. You can and should talk with as many builders and local banks as possible. Look for the best possible terms out there in terms of down payment, closing costs and more.
Some builders may have programs or deals especially for veterans and military families to build a modular home through VA loan. Be sure to do your homework on the company and ensure it’s a legitimate builder with a track record of success and satisfied homeowners.
You can also check with lenders to see if they’ll actually do a true VA loan, where the lender pays draws to the builder as the project progresses. But know going in that you might struggle to locate one. Like so many other lenders, Veterans United does not make construction loans to build new homes.
You’ll have considerably better luck locating VA lenders willing to turn that short-term construction loan into a long-term VA loan. This is something Veterans United can help you with.
In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.
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