What is a VA OTC Construction loan?

Question: When it comes to getting a VA Loan, who is eligible?

Answer: Veterans, active-duty service members, and many surviving spouses who meet service requirements and obtain a Certificate of Eligibility.

Question: Is it true that VA loans can require $0 down?

Answer: Yes, eligible borrowers can purchase with no down payment, keep in mind this is subject to the individual's entitlement and lender approval. Some lenders may have overlays, meaning additional requirements.

Question: Is there private mortgage insurance on a VA loan?

Answer: No. VA loans have no private mortgage insurance; a VA funding fee may apply, depending on the borrower. Every individual is different.

Question: Can someone reuse their VA loan benefit?

Answer: Yes. Entitlement can be restored and reused for future purchases.

Question: What is a VA OTC construction loan?

Answer: A VA one-time-close construction loan finances the building of a new home and converts to a permanent VA mortgage with one closing, one approval and one set of closing costs, with $0 down options for eligible borrowers.

Question: Where can I build with a VA loan?

Answer: VA borrowers can build a home anywhere in the state of Florida using a VA One-Time Close (OTC) Construction Loan, provided the property meets specific VA and local rules.

Keep in mind, the location and project must satisfy several core requirements:

Where You Can Build

• Any County in Florida: You can build across any county or city in Florida, subject to finding a lender that offers VA construction-to-permanent loans and a builder willing to work with VA financing. We work with dozens of lenders, so our job is to hook you up with the best lender for you and your situation.

• Land Ownership Options: You can build on land you already own, land you purchase simultaneously with the construction loan, or land gifted by a family member.

Rules & Restrictions (Why "Anywhere" Has Limits) in Florida:

• Must Be a Primary Residence: You must intend to live in the home as your main, full-time residence. You cannot use a VA loan to build a vacation home, a second home, or a pure investment/rental property in Florida.

• No Bare or Unimproved Land Alone: You cannot use a VA loan to buy raw, bare land or farm land unless the land purchase is tied directly to starting home construction immediately.

• VA Minimum Property Requirements (MPRs): The site and completed home must meet VA safety, structural, and sanitation standards, as well as local Florida building codes (which often include strict wind-mitigation and flood zone regulations).

• Builder Approval: The contractor or builder you choose generally must complete lender acceptance vetting and approval before closing. Not all builders accept VA construction loans because of the draw-inspection process.

• Appraisal & Permits: The project requires approved local Florida building permits and a valid VA appraisal prior to final approval.

Call us to talk more about your needs. 321-972-6468