VA Home Loans for Home Construction: Factors to Consider

Buying a home is perfectly fine, but one drawback is that the home has been lived in before. To some people, that takes away the feeling that the new home is theirs. But a construction loan makes it possible to have the ideal home built. For American veterans, VA home loan for home construction make it possible to build their own homes.

There are some clear advantages to constructing a home from scratch compared to occupying a pre-built home. The design opportunities are the most obvious to us all, but others relate to a more manageable repayment structure and the lower interest charged.

Financing home construction is a complicated process, but by speaking to the relevant people, and finding out the specific differences in loan distribution and payments that exist, the full advantages of a VA home loan can be enjoyed.

The VA Financing Option

Finding the funds to build a new home might be more complicated than looking for funds to buy an established house. This is because a VA home loan for home construction has more facets than a typical home loan, which is used to just buy the deeds to the home. A construction projects is a live thing, with delays and changes to design plans commonly experienced.

As a different loan animal, financing home construction is accomplished with different criteria, and even after the mortgage is approved, there are strict guidelines to take into account. Some of them work in the favor of the borrower, like the loan preventing borrowers from paying the construction fee, thus keeping the cost down.

However, in contrast, a funding fee is applicable, and needs to be paid just 15 days after the home purchase deal has been closed – though it can be paid before the deal is struck too. Some VA loan borrowers are exempt from the fees, such as wheelchair-bound veterans.

Advantages of Construction Loans

Normally, the advantages of getting a mortgage from the VA are that the interest rate is lower, with a percentage of the loan itself being subsidized by the government. Another is that once the loan is used to purchase the home, the borrower has 30 days before repayments begin. But it is different for a VA home loan for home construction.

Once the mortgage is approved and spent, it will take several months for the first repayment to be made. This is because financing home construction is very different to financing the purchase of a completely, pre-constructed home. The basic rule is that repayments should not begin until after the borrower has moved into the property.

So, if it takes 6 months to build the home, the borrower has 6 months to wait before repayments are made. There is a limit to this delay, however, with 12 months the maximum period of grace on the VA home loan.

Finding the Right Contractor

The process of finding a contractor to build your new home normally involves seeking a reputable builder in your area. But when getting VA home loans for home construction, it is important that only one of the registered contractors are hired to do the job. These builders must be recognized by the Department of Veteran Affairs, so look out for the VA builder ID number.

Even in general terms, financing home construction is a major deal. Budgetary concerns mean that quotes and rates have to be studied. While the VA might detail a short list of registered construction companies, it is still necessary to identify the one that works for the lowest cost.

However, keep in mind that a VA home loan has to be secured before work begins, and written confirmation of the sum agreed must also clearly state the loan is dedicated to building the new home, and no other funding is being provided.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com

Article Source: http://EzineArticles.com/expert/Mark_Venite/1134449

The Top 5 Reasons to Consider Residential Home Construction

When you’re looking at residential home construction, you have to figure out why it’s better than a pre-owned home. Regardless of where you’re thinking about moving in, there are advantages to choosing new home construction. Whether you’re focused on certain features or trying to stay under a certain price, you may be surprised by how easy it is to find a newly constructed home that fits all of your requirement.

Better neighborhood. With residential home construction, you may be able to look at some different communities that are newly constructed. Some of the new communities make better neighborhoods because they are just being established. The neighborhoods are likely going to have paved sidewalks as well as many other features. You may find tennis courts, community swimming pools, playgrounds and much more as well.

More amenities. There are going to be more amenities within the residential home construction. This includes better carpet, larger tiles, state of the art appliances, garden tubs and much more. You will be able to choose the amenities to your standards as well. This means you can select the tile you want, the appliances you want and even the colors of your counters and cabinets. With more amenities and more choices for you to make, you get the ability to customize your home in many different ways. When you buy a pre-owned home, you don’t get these advantages – you have to deal with what someone else chose for you. Think about what’s important in a new home and then locate a builder that can provide you with those amenities.

Fewer problems. There are going to be fewer problems in residential home construction. The electric has already been tested out. You have a new roof. All of the drywall has just been installed. This means that you don’t have to worry about such things as mold, mildew or other problems throughout the house. This will be more cost effective because you don’t have to fix problems. If there are problems, you’re under warranty, saving you money because you can just call up the builder to file a complaint.

New plumbing. One of the biggest problems outside of residential home construction is the plumbing. If you buy a pre-owned home, you don’t know what has gone down the drains and been flushed down the toilets. Everything may look okay but as you continue to live in the house, someone else’s problems may start to surface – literally. With new home construction, it’s all new plumbing.

Cleanliness. All of the carpet, all of the counters and all of the tubs and showers are brand new in residential home construction. This means that you have the cleanliness you want in a new home. You don’t have to worry about someone else’s stains, kids or pets left behind for you to deal with. The home will look and smell new, which is one of the many reasons to buy a new home instead of a pre-owned one.

As a new home builder, Gateway Homes is dedicated to building homes of enduring value that our homeowners, the community and employees can be proud of. This commitment is witnessed in the quality of products that we use in home construction and the precise standards we maintain throughout the entire residential home construction process.

Article Source: http://EzineArticles.com/expert/Britton_Connell/1448882

Article Source: http://EzineArticles.com/7620979

Home Construction Financing

Although having the exact home you want is an outstanding benefit, financing home construction can be a different matter. If you’re working with a custom builder, you will need to assume something known as a “construction loan”. This is the loan that pays off the builder while they build your home. Construction loans are typically short term loans that pack a higher interest rate than your traditional mortgage.

If you’re purchasing a starter home, this might thankfully not apply to you. Builders of “starter homes” understand that a lot of their potential buyers are not able to qualify for a high rate construction loan nor do they understand or care to acquire a short term loan then a long term loan. For this reason, entry-level homes are frequently financed by the builder or else the builder merely builds the homes out of pocket, handling the lot and all of the construction costs of the house. If this is the case with your builder, you will need nothing more than a traditional loan.

If it does turn out that you will require home construction financing, it definitely pays to browse around for best rates and lender with which to obtain one. As construction loans are generally fixed at a higher rate than conventional home loans, you’ll want to pay off the construction loan as promptly as possible.

Some banks will offer you a package deal called a “combination c and p” loan with just one set of closing costs. This makes up both a construction loan and a conventional mortgage loan wrapped up in to one. A combination C&P loan will save you time and hassle in the long run.

Traditionally, a construction loan works as follows. You apply through a lender for a construction loan secured by the home that is being built. Because the home is not yet built, the lender is taking on additional risk by financing you and this will be reflected in your rates.

As the house is constructed, the builder will ask for a “draw” or percentage of the cost based upon the level of completion of the home. This will come about at several stages during the construction of your new home. The bank that’s financing your construction loan will compensate the builder for these draws and construction will progress to the next stage.

Around thirty days prior to the home being completed, you will want to apply for a traditional mortgage subject to the house being complete. This way, the construction loan is paid back and the permanent financing is put in place as quickly as possible after the house is built.

Whether you’re looking to Get a Home Mortgage Loan, Finance a little Home Construction or learn about the Different Types of Home Mortgage Loans, you can find it at our Website at http://www.gethomemortgageloan.com/.

Article Source: http://EzineArticles.com/expert/Josh_Spaulding/29759

What You Need to Know About Home Construction Price

Undoubtedly before you embark on any home construction project whether it be home remodeling for an existing house, new home construction, kitchen remodeling or room addition, you would wisely research how pricing construction and home construction rate work. Assessing and pricing construction projects are not too complicated to understand and are definitely not quantum mechanics science. As an experienced general contractor in Los Angeles I know how my clients think and what would make them happy, they basically want the best of the best in terms of quality and materials for as low as possible. Sometimes I can almost hear them think what they don’t dare ask – “do it for free “. Well unfortunately and as the old saying goes, nothing is free in life. Knowing that home construction price is the main factor in the decision making process of most people; I tend to explain how “prices construction” works and how I actually calculate estimations.

In general the factors a home contractor takes into account are: materials, labor, equipment, licenses and permits, office expenses, time and scope of work. All these elements must be considered very carefully and thoroughly before the final building cost is presented to the client. Any home construction rate may also vary according to the quality of the materials and the subcontractor’s credentials, as well as the area and state where the project is done because of differences in permits costs and charges. To avoid over-charging or under-charging the experienced home contractor also studies and reviews past projects and current costs of materials to come up with an accurate answer to the “prices construction” question, as it is often asked by my clients.

To elaborate a little on the cost of materials let us start with the fact that on any single home construction or home remodeling project, builders use more then one kind of material, whether it be just tile installation, counter top replacement, bath room remodeling or even painting a house, the materials and equipment necessary are many and the accumulative cost of all of them can be very expensive for the contractor, thus making the home construction price high in the eyes of the home owner. Many a times the contractor would need to rent heavy machinery and equipment for the job and this too can bring the home construction rate higher. The cost of specific materials can change according to the quality, the strength and brands. For instance tile varies in price tremendously, depending on the kind and brand, therefore a bathroom remodeling can change considerably from one project to anther, while wood price for framing is relatively the same. Of course it is not the place or the scope of this information to detail the prices of materials, but rather to give an idea of what is involved in pricing construction jobs.

Professional labor, as mentioned before is another significant aspect in the equation of home construction rate a general contractor will place in the estimate. Crews of trained, experienced and licensed professionals have earned their expertise with a lot of sweat and years of hard work in the field and therefore legitimately deserve a fair salary for the high-end job they deliver. When it comes to home construction and home remodeling, precision and craftsmanship is crucial and should not be under estimated by home owners because the difference between an expert and an amateur is huge.
Furthermore, cutting corners and hiring non professionals is going to cost more in the long run and needless to say that many of them are unlicensed which makes it also illegal. A good home contractor will chose a craftsman who has the know-how and over of brand named materials if he needs to keep the budget low in the pricing construction process.

Home construction is regulated by the CSLB and city municipalities and almost every home remodeling requires some type of permit from the city. It is something that a builder will calculate and add to the home construction price, unless it is agreed with the home owner that expenses for permits are covered by the client.

And last but not least, like any other business, a general contractor must have an office and other over head expenses that add a small percentage to the over all home construction rate estimation given to the home owner.

All of the above is meant to sum-up in very general terms the basics of construction price estimation, and is the first article in a series of articles on the subject of pricing construction or as home owners tend to say “prices construction”.

Moshe C is a general contractor specializing in green building please visit us for more info http://www.greenfutureconstruction.com

Article Source: http://EzineArticles.com/expert/Moshe_C/605209

They Don’t Build ‘Em Like They Used to! Women Who Project Manage Their Home Construction

It’s well known that project managing the construction of a home will save you money – and give you more decision making control. What is less widely known is that many successful project managers are women – who have no construction experience whatsoever.

My company has been selling cedar homes for 18 years. Over the years, I’ve had the opportunity to work with all kinds of home buyers. Their backgrounds and experiences are as varied as the houses they build. However, I’ve noticed that the women who elect to project manage the construction of their homes share similar characteristics that uniquely qualify them for the job.

What women lack in home construction knowledge, they more than make up for in natural curiosity and organizational skills – or as some prefer to say, “multi-tasking abilities.” Anita Legaspi and her husband Ray (neither of whom had construction experience) built a 3,600 sf custom cedar home near Lake Stevens, WA about 5 years ago. At the time, Anita was a stay-at-home mom who enjoyed sewing and Ray was employed at Boeing. They realized early on that “they could get more house for their money if they did it themselves.”

Of the pair, Anita had more time available to organize the project and research their options. She realized that her experience with soliciting items for school auctions would also be helpful in obtaining subcontractor bids for their home. “I wasn’t afraid to talk to people and ask questions. I had the ability to communicate on the phone,” commented Anita.

With the help of a timeline (outlining tasks and deadlines), Anita obtained bids and contracted out: the foundation, shell construction, electrical, plumbing, roofing and deck installation. Anita, Ray and their son Christian did much of the painting and finish work themselves.

Anita admits that the time spent building the home was difficult for their family. Ray and Anita chose to live onsite by utilizing their small trailer and a camper. She remembers the initial fun of “camping,” complete with bonfires (to burn up the stumps) and hot dog roasts. However, the summer fun dissipated when wet weather set in. Ray and Anita realized that their trailer was becoming more claustrophobic than cozy – and it wasn’t very well insulated..

Looking back on their house building days, Anita offers this advice:

Decide what’s important to you. If you really want that special kitchen – go for it.
You can never go wrong with quality.
Develop a cost breakdown sheet to help you compare bids and expenses.
Big name companies don’t always offer the support you’ll need. You need to be able to communicate with a dealer, subcontractor, etc. You should feel like you can call them any time.

Nancy and Paul Davis knew that they wanted a cedar home for their mountain retreat near Cle Elum, WA. Neither Paul nor Nancy had bought property before and the whole process of developing the property and building a home was new to them.

In an effort to learn more about the process, Paul and Nancy attended a Log Home Seminar and also researched companies and products on the internet. According to Nancy, “The seminar was good for us. It brought up all the things we hadn’t thought about.”

Prior to staying home with their son Cory, Nancy had been a foundry supervisor and had also worked in a human resources department. She knew a few things about interviewing, hiring and managing people. She also knew that if she and Paul were to build the cabin themselves, “it could take years!” Their solution was to put Nancy at the helm and have her manage the construction of the cabin.

Paul and Nancy elected to undertake the finish work themselves, but hired separate subcontractors to handle the foundation, shell construction, electrical, plumbing and roofing. At one point, Nancy put together a work party with three girlfriends. Together they installed the wood flooring in the great room and kitchen. However, Nancy noted that this was done “only after we had dinner out on Friday night to discuss our approach – and of course, a great breakfast with lots of chit chat before we actually began.”

A low point for Nancy came when she was the only person onsite and “the cabinet people dumped all our kitchen cabinets right in the middle of our driveway.” It was up to Nancy to figure out how to get them all inside by herself. Nancy called for back up and said, “I had to be really assertive, which is totally out of my personality.”

Today, the Davis’ are very proud of their 2,300 sf cabin retreat. “We knew we could do it with the support of knowledgeable people in the industry.” Based on her recently acquired construction management skills, Nancy offers the following tips:

Find your own system to stay organized. Nancy used a notebook divided into tasks, i.e. electrical, plumbing, and roofing, etc.
Network with other people within the construction community and seek their advice
It’s OK to be assertive – especially when you are trying to track down answers and make decisions.

“Everybody is blown away by how beautiful my home is,” says Diane Weibling who project managed the construction of her own 1,200 sf cedar home in North Bend, WA. For ten years, Diane, a family support worker for the Seattle public school system, read “how to build your own home” books at the North Bend library. The librarian finally told her she was going to have to stop reading and start building her own home. And that’s exactly what she did.

In addition to her library research, Diane attended open houses and talked with other homeowners. She says that the idea of project managing the construction her home evolved slowly. “I felt like if I wanted it done right, I’d have to do it myself.”

She obviously did a lot of things right. Her home has a panoramic view of Mt. Si – in the foothills of the Cascade Mountains. People drive slowly past her home so that they can appreciate her unique setting and beautiful home.

Diane took time to look for bargains on cabinets and appliances for her new home. She said, “I got all my solid maple kitchen cabinets for $1,200. Someone had ordered these and never picked them up. I went to the Sears Outlet and checked out their scratch & dent models. I bought a fridge with a broken plastic handle that I easily replaced. I bought a demo wood stove at the fair and saved $600.”

Her project managing experience has taught her a few more things, including:

Try not to micromanage the subcontractors. It’ll drive you (and them) crazy.
Ask the builder how many projects they have under construction. It may mean they won’t have blocks of time to give to your project – and this could extend your timeline.
Ask for contractor prices

Each of these women brought unique skills to their home projects – none of which was a background in construction. What motivated them to manage their home construction? Certainly money was a factor. By project managing the construction of their own homes, each woman realized many thousands of dollars in savings. The savings could result in a lower mortgage payment – or it could mean having a larger home for less money – or both! In some cases, project managing is a way for the homeowner to maintain more control over all aspects of the home’s construction.

Project managing home construction is not an option for everyone. The state of Washington allows homeowners to serve as their own general contractors (or project managers) – but not all states will permit this. Bear in mind also that not all banks will finance owner-built homes. Lastly, remember that when the plumber doesn’t show up on schedule, you’re responsible for keeping the project moving forward and on budget. Some subcontractors are aware that your home is a one-time project for them – whereas a contractor will be calling them for other jobs in the future. This may affect the quality and timeliness of their work which in turn may adversely affect your timeline and budget.

None of the women interviewed for this article had building background and none of them had ever project managed the construction of a home. However, all three women had a natural curiosity about the process and were willing to step out of their comfort zone and try something new. Certainly, the end result for each of these project managers is a beautiful home and many thousands of dollars saved. The most unexpected outcome has been a change within each woman. When asked, “What did you learn about yourself” all three women project managers responded, “I learned I can do anything I set my mind to.”

Judy Flanagan and her husband, Mike, are the owners of Cedar Homes of Washington, Inc. in Snohomish, WA. She also serves as an industry consultant to new dealers and conducts informational seminars for cedar home buyers.

Article Source: http://EzineArticles.com/expert/Judy_K_Flanagan/1038211

Article Source: http://EzineArticles.com/6218521