Real Estate by Debbie Reynolds: Benefits of Using Your VA Loan on New Construction

Benefits of Using Your VA Loan on New Construction

VA Loan and the Advantages for Clarksville TN New Home Buyers 

Clarksville is right next to Ft. Campbell, KY and this means that many of the buyers want to use their VA Entitlement on their new home purchase. This is an excellent loan source to get into a home in the Clarksville TN area with no money down.

That is one of the major benefits of using a VA loan, no down payment. Even those Veterans that have previously used their VA benefits for a home purchase may be able to do it again with the expanded use of the entitlement that is now allowed. Prior or current military service and retired Veterans usually have VA Entitlement that they can use to finance a home.

VA loans on New Construction

Benefits of Using VA on New Construction- The VA loan helps many buyers buy instead of rent in Clarksville. With enough entitlement the Veteran can purchase the new home without having to invest in a down payment. This could save the Veteran up to 20% of the sales price for a traditional 80% loan to value conventional loan by allowing 100% of the sale price to be financed.

Are you eligible for a VA loan? Find out here. 

Buying Versus Renting- Believe it or not it is sometimes easier to buy than rent. When renting your credit may have to be better than buying on a VA loan. The upfront money may be staggering with first and last month rents, a hefty security deposit and pet fees and deposits required. You can buy a new construction home and not have to worry if a landlord will allow your pets. 

Builders Selling New Homes on VA Loans- They are very familiar with selling VA and actually encourage it. They start at the beginning by selecting plans that work and then building to codes knowing the chances that a VA buyer may come along. VA appraisers are not harder on these properties than they are on FHA loan appraisals. If it is built right, it will pass with flying colors.

The Appraisals- Safe, Sound and Secure are the standards that the appraisers look for. This is to protect the lender and to protect the Veteran. Recent comparable sales are used to evaluate and substantiate the value for the loan.

If the appraisal comes in below the sales price the following options are available:

  • The appraisal can be challenged with proof of better comps or that an error was made. This may or may not change the appraised value.
  • The buyer can pay the difference between the appraised value and sales price.
  • The seller can reduce the price to appraised price.
  • The buyer and seller can renegotiate price and terms.
  • Or the sale can be canceled.

Here are the benefits of using a VA loan on new construction.

  • No down payment if the Veteran has sufficient entitlement
  • No mortgage insurance (MIP or PMI) is collected
  • A Funding Fee may be required but Veterans collecting a VA disability do not pay this
  • Qualifying is easier with higher debt ratios allowed than on conventional financing
  • VA Entitlement doesn't expire
  • You can use your VA loan more than once
  • You may be able to have more than one VA loan at a time
  • You can sell your loan on an assumption to a person that qualifies for the payment and gets approval
  • If the person assuming the VA substitutes his entitlement the original borrowers entitlement is restored.
  • You can rent your home as long as you bought it as your principal resident with the intent to occupy
  • You can buy an investment property up to 4 units if you intend to live in one of the units. What a great way to get started as a landlord.

Buy with the Intent to Occupy- These loans are for your primary residence. If you are buying with the purpose to urn it immediately into a rental property then this is fraudulent. Lenders will require you to affirm you are buying it as a principal residence for yourself or a qualifying spouse.


Closing Costs and Prepaid Items- Builders and other sellers in Clarksville TN usually help pay most of these costs making it easy for the VA buyer to get into a home with very little investment. 

Accept the Responsibility- Using your VA loan means you are taking on a debt and the responsibility to maintain the home as good collateral for the loan. Take it seriously and even if you buy with no money down and get all your closing costs paid, you still will have monthly payments due on your mortgage and maintenance from time to time. Protect your investment and credit. If you default, it will severely hurt your credit and penalize you when you try to use your VA loan again.

Check out homes for sale that could sell on a VA Loan in Clarksville TN.

VA Funding Fee- Some VA buyers are exempt from paying this fee. Others must pay. If you are active duty you are probably not exempt as you are receiving military pay and not a disability. See who is exempt and learn more about the funding fee. 

See if you qualify for a VA loan on your New Home. Contact The Real Debbie REynolds at 931-320-6730.


 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

When you need Real Estate services in Clarksville TN

                  it would be my pleasure to assist you!                             

Debbie Reynolds
"The Real Debbie Reynolds"

Check out all Clarksville TN Real Estate on My Website

931-771-9070 Office | 931-320-6730 Cell

Clarksville TN Homes 


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Comment balloon 16 commentsDebbie Reynolds • March 15 2017 01:34AM


It is such a wonderful opportunity for Veterans to get a Brand New Home Debbie Reynolds 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) over 1 year ago

VA loans are great and it now has one of the lowest default rates even with zero down. We have the largest Air Force Base in the US in OKC, Tinker, so this works well here also.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) over 1 year ago

Debbie, such a well written post. A VA loan is a wonderful benefit and it's extra special to see our Military use it to purchase a brand new home. You did a superb job explaining the ins and outs of a VA loan. Anyone who wants to learn more about their VA benefit in the Clarksville area would be wise to contact you. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group) over 1 year ago

Hi Debbie- this is such good information to get out to those who have served.  With inventory limited in many areas, new home construction is a good option. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) over 1 year ago

Debbie excellent information for VA potential buyers in your area - and I know there are a lot of them as our son lived there 8 years ago and had a VA loan. Nothing more exciting for service people and their families to move into a brand new home in Clarksville TN!

Posted by Anna Banana Kruchten CRB, CRS 602-380-4886, Arizona's Top Banana! (Phoenix Property Shoppe) over 1 year ago

Hi Debbie,

Excellent post!  The VA Loan program is a great tool for both active military and Vets to become home owners.

Posted by Wayne and Jean Marie Zuhl, The Last Names You'll Ever Need in Real Estate (Samsel & Associates) over 1 year ago

Hi Debbie, great information to those who are eligible for VA loans. It's a great benefit to those who truly deserve it.

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) over 1 year ago

Hi Joe Pryor, it is so rewardig working with Veteran clients.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

I agree it is earned and glad they have it, Beth Atalay.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

Hi Wayne and Jean Marie Zuhl, our Veterans have earned this and other benefits.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

Did your son like it here, Anna Banana Kruchten? It has grown so much in 8 years time.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

I know these loans really well. So many of our buyers use them, Amanda S. Davidson.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

The Veterans like moving into new homes. I do too, Kathy Streib.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

It is so good to have this option for Vets, Scott Godzyk

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

This is excellent advice to share with prospective home buyers.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 1 year ago

Good morning Debbie.  Excellent advice for those eligible for a VA loan.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 1 year ago