Skip to comments.Can I? Should I? Use a VA Home Loan for a new construction log home?
Posted on 01/25/2012 10:52:30 AM PST by TSgt
My wife and I bought our first, current home, with a conventional loan. We have perfect credit and are not under water but owe pretty much what it's worth. Our debt to income ratio is very low.
We have a farm in Kentucky where we would like to build a log home and I'm eligible for a VA loan.
Can I and or should I use a VA loan to build our dream log home?
Can I do this while I'm living in my current home if the new log home will eventually be our primary residence or do I have to sell my house first?
I've Googled this but have found conflicting information related to VA loans and construction loans.
We used our VA loan for our house, but it wasn’t new construction. However, my loan officer (and since this is a military community, most loan officers here in Jacksonville) are VA loan knowledgable. I’d be happy to ask for you.
Log homes, unless they are in a neighborhood of other log homes that sell well, are often valued below the dull and standard fare for comparable square footage and features.
That said, best of luck with your log home. That would be my dream home.
There are a few around where we want to build and all are valued/priced much higher than the home we wish to build.
Our “Dream Home” is probably fairly conservative by most standards.
I can’t comment on how you finance your log home, but I do want to warn you to do a lot of homework on the construction of the LH. Friends who own one have gone through a huge amount of money and trouble because their LH has leaked from the get-go. Two factors to watch out for:
First, the logs are supposed to have super-hard heartwood at the center. This keeps naturally-occurring splits in the logs after prolonged exposure to the elements from splitting all the way through the log. In the LH in question, a subsequent exam by the latest of many fixers has found that many of their logs do not contain heartwood centers.
Secondly, the contractor who performs the inside finish work — any framing, flashing, caulking, insulation in ceilings, around windows and doors or the like — must know how to do this properly in a log home. Otherwise there will be leaks of heat and water and infestations by bugs or mice.
Hope this helps.
Many years ago
but not recently..
for the house I own now I didnt use a VA loan..
The VA loan used to be $99 down..
but just on new houses..
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I dont have THE answer but I can relate other’s experiences. I know of a vet who did a construction loan and then converted to a VA Loan.
Side thought, take a look at this web page http://everlogs.com/
They sell concrete logs and concrete log siding. Does not burn, rot and is resistant to insects so much easier on insurance. Our church is looking into a steel frame with concrete log siding exterior.
VA loan is $0 down, and the house we bought is over 20 years old. People use them on new homes, but older homes get a VA inspection, and as long as they pass, they can be financed. That I do know.
I would never recommend anyone us a VA loan. Ever! They are not a deal at all...
That said, you should not execute this plan. Don’t build until your current home sells. If you do, you will most likely end up making payments on two mortgages and that could be devestating for you. (Ok, taking my Dave Ramsey hat off.)