Building a shipping container home is a great way to get your perfect custom dream home for less money. One of the downsides of trying to build your own house is the fact that it is so expensive. That’s why building a shipping container home is such a fantastic alternative. Plus, you can save even more money if you decide to get a shipping container home VA loan.
The United States Department of Veterans Affairs offers all kinds of benefits to veterans of the armed services. If you qualify for VA benefits, you might be able to build your home using a loan from the association. There are all kinds of advantages to these types of loans. Knowing how to get a shipping container home VA loan can help you build your home and save money.
What is a VA Loan?
VA loans are home loans offered by the Department of Veterans Affairs to help veterans buy homes. However, they also offer construction loans that can help you build a custom home and buy land. These loans have the benefit of needing no money down. If you have been having trouble raising the 20 percent needed for most construction loans, this could be a good option.
When you get a VA loan, you are not actually getting a loan from the Department of Veterans Affairs. Instead, you will be getting the loan from a private lender such as a bank or credit union. These loans are guaranteed by the VA, which makes the whole process much easier. You can get the loan from the same place you would get a car loan or traditional mortgage.
Can You Get a Shipping Container Home VA Loan?
One of the downsides of getting a shipping container home VA loan is the fact that it can be very difficult. Not all lending entities will allow you to use the VA loan to build a container home. There are strict rules when it comes to the things you can build using one of these loans. Because of this, you will have to be as prepared as possible.
You also need to know that you absolutely have to be a veteran to get a shipping container home VA loan. If you are not, there are other government-guaranteed options. These include things like a USDA loan or an FHA loan. Being registered with the VA is always going to be your first step when getting a shipping container home VA loan.
How to Get a Shipping Container Home VA Loan
The first step you should make when looking for a shipping container home VA loan is to look for a private lender. For the most part, the private lender will be able to walk you through the whole process. They will also let you know if you will be allowed to build a shipping container home. If you make this your first step, you can be sure that you will be able to move on to the next ones.
There are several important qualifications for a shipping container home VA loan. Firstly, you have to have served at least 90 days in active duty or 181 consecutive days during peacetime. You will also qualify if you have spent at least six years in the National Guard. You will also need to pay a funding fee of anywhere between 1.25 percent and 3.3 percent.
Finding a Builder for Your Shipping Container Home VA Loan
When you get a shipping container home VA loan, you also have to use an approved builder. This can be detrimental to people building container homes. For the most part, many people will want to work on their custom houses themselves. Because of this, getting a VA loan may not be the cheapest option in the long run.
The private lender that you choose will be able to tell you which builders are in the VA network. Make sure you interview all the builders on the list and see what their experience is like. Not all builders will be qualified to build a shipping container home. However, even if a builder has some experience with alternative housing, they may still be a good choice.
Choosing a Type of Shipping Container Home VA Loan
When you get a shipping container home VA loan, you have a few different options. You can either get a one-time closing loan or a separate loan for your land and your construction. For the most part, you will probably want to get a one-time closing loan. This way, you can save money on closing costs throughout the whole process.
If you want to get a separate loan for your land, this will not be your VA loan. It will have to be from a private lender and you will have to qualify for it on your own. You can also possibly take the money you would normally spend on a down payment and purchase land. However, keep in mind that you will have to pay the closing costs on both the construction and land loans.
Limits of a Shipping Container Home VA Loan
Aside from the fact that you may not be able to get a shipping container home VA loan, there are other limits. If you are in a standard housing market, you can get a loan of up to $647,200. If you live in a more expensive housing market, the limit is $970,800. If you get one of these larger loans, you may still have to put down a down payment of 20 percent.
Getting a shipping container home VA loan is a great way to build your custom dream home. Knowing how you can qualify and what you need to do to get one can make the process much easier. By being prepared and searching for the right lender, you can build your home without a large down payment.
If you would like more helpful guides like this one, check out the rest of ContainerHomeHub.com. There, you will find all kinds of tips and tricks from the pros. You will also find featured container homes to help get you inspired and thinking about your own project.