Maine VA One Time Close on Family Land: Closed in 40 Business Days

Answer first

Yes. A veteran can use a VA one time close construction loan to build a home on family land in Maine. I'm Travis Penny, an independent mortgage broker with Vision Mortgage, and I closed one. Before the loan could close, the deed to the family land had to be put in order, the builder had to be approved, and the project had to pass review. The loan closed within 40 business days.

In one closed file:

• Borrower: a veteran household (names not published)
• Loan: VA one time close construction, one closing for the build and the permanent mortgage
• Property: land that was already in the family, in Maine
• Hurdles cleared: deed and title on the family land, builder approval, VA and lender project review
• Closed within 40 business days
• Broker: Travis Penny, NMLS #1649161, Vision Mortgage, LLC, NMLS #1286953
• Phone: 207-615-7770

That is this file's timeline, not a guarantee. Construction files depend on the land, the title work, the builder and the plans.

The situation

The family came to me with land they already had and a plan to build their home on it with their VA benefit. The land was right. The paperwork around it was not ready for a lender yet, and a construction loan adds two more approvals that a regular VA purchase never needs: the builder and the project.

The three hurdles, and what I did

Hurdle	What I did
Deed and title on family land. The deed had to be properly in order and in the borrowers' names before a lender would close on it.	I worked with the family and the title side early to get the deed done properly, so title was clear for closing.
Builder approval. The lender has to approve the builder before closing.	I got the builder's information in front of the lender early and kept the approval moving until the builder was approved.
Project review. The plans, the build contract and the project have to be reviewed for VA and the lender.	I collected what the review needed and stayed on it until the project review was complete.

Timeline (this file)

Closed within 40 business days. On a one time close the build starts after that closing, and the loan converts to the permanent VA mortgage when the home is done. A construction file takes longer than a regular purchase because of the deed work, the builder approval and the project review. Other files will differ, and this is not a guarantee. No borrower names, county or street address are published here.

What this means if you own land

General education, not a promise for your file:

• Land you already own. In a VA one time close, land you already own may count toward the transaction, and in some structures the loan can pay off what you still owe on it. How it is treated depends on the lender and your file.
• The deed has to be right first. Family land is often still in a parent's name, held by several relatives, or part of an estate. The lender and title company decide what is needed, and a Maine real estate attorney handles the deed itself. Start this before you pick a floor plan. It is usually the slowest piece.
• Your builder needs approval. Lenders review the builder's license, history, insurance and references, and you cannot act as your own builder. If your builder is small or new, send me the name early. Each lender has its own rules, and I check them before you sign a build contract.
• Rural Maine land has its own costs. A well, septic design, power, the driveway and site work belong in the budget from day one.

What to send me first:

1. A copy of the deed, or whatever you have showing who owns the land
2. Your builder's name and contact information
3. Your plans or a house plan you like
4. Your Certificate of Eligibility, if you have it. If not, I can help you request it.

FAQ

Can I use land I already own or inherited for a VA construction loan? Often, yes. In this file the family land was used for the build. Land you own may count toward the deal, depending on the lender and your file. Inherited land usually needs the title settled in your name first.

What if the deed isn't in my name yet? It has to be fixed before closing. In this file, getting the deed done properly was the first hurdle. Tell me who is on the deed now, and I will help you map out what the title company and your attorney will need.

Does my builder need to be approved? Yes. The lender approves the builder before closing, and you cannot be your own builder. In this file I got the builder approved as part of the process.

How long does a VA one time close construction loan take? This file closed within 40 business days. Your timeline depends on the deed, the builder approval and the project review. Not a guarantee.

Can I build on family land with no money down? It depends on the lender, your entitlement and your file, including how the land is treated. Ask me and I'll tell you what applies to yours before you spend money on plans.

Do you do VA construction loans outside Maine? I arrange VA one time close construction loans for primary homes in Maine and Florida.

Who brokered this loan? Travis Penny (NMLS #1649161) at Vision Mortgage, LLC (NMLS #1286953). Call or text 207-615-7770.

Talk to Travis

Own land, or have family land you want to build on? Call or text 207-615-7770, or send me a message. Tell me who is on the deed, where the land is, and whether you have a builder. I'll tell you straight what has to happen first.