Nailing Interest Rates For Veterans
We helped an armed forces veteran use a VA loan to build his dream home AND worked diligently to lock in his low interest rate as mortgage rates rose nationwide.
The Client
The Berlehners are a military family who were referred to the Lincoln Lending team by a friend of theirs. They were in the process of building their dream home in the Oklahoma City metro when they reached out to us.
Typically, when people build a new house, they begin with a special construction loan. When the house is 30-60 days away from being finished, they begin working with a mortgage lender to convert it to a traditional home loan.
The Berlehner family’s situation was a bit unique because they worked with a home building consultant who helped them act as their own contractor rather than hiring a professional contractor. Also, they wanted to take advantage of the VA home loan benefit offered to veterans.
The Challenge
Using a VA loan for a typical new construction home is usually simple and straightforward. However, the Veterans Administration has specific rules in place for military members who want to be their own contractors. Because of these rules, a little extra time was needed to work through the requirements with the VA on the behalf of our borrowers.
Due to rising interest rates, we needed to get their loan wrapped as quickly as possible to help them keep their low interest rate and affordable monthly payment.
The Process
For most buyers, it takes an average of 30-45 days to fully process and close their loan. However, with the complications that the Berlehner’s faced, it took us nearly three months to interface with the Veterans Administration, get all of the required documentation in order, and close their loan.
Before we finished up, their rate quote reached its 60-day limit. Interest rates were rising quickly, so we needed to obtain a rate lock extension to keep their great interest rate.
The Success
The VA loan requirements are tricky to navigate, especially in special circumstances like acting as your own contractor. We were fortunate that the Berlehners worked so well with us to meet the requirements and secure their VA benefit.
We also nailed the market timing and, with the extension lock in place, were able to save their low interest mortgage to keep their monthly payments comfortable. Now, the Berlehner family is living in their beautiful new dream home.
If you’re facing a tough situation with your mortgage and need a little guidance from a tenacious team, get in touch. We’d love to learn about your situation and see if we can help.
