Construction & Renovation Loan
VA One-Time Close Construction
Build the home you want with your VA benefit. One loan covers the land, the construction and your permanent VA mortgage, with one closing.
- CoversLot, construction and permanent loan
- ClosingsOne
- Down paymentNone for eligible borrowers with full entitlement
- BuilderLicensed and approved by the lender
How It Works
Build with your VA benefit.
A VA one-time close loan combines construction financing and your permanent VA mortgage. You qualify and close before the build begins, the builder is paid in stages, and the loan becomes a standard VA mortgage when you move in.
- 01
We confirm eligibility and your builder
Your Certificate of Eligibility shows your entitlement, and the lender handles requesting it. The builder must be licensed and approved by the lender, and registered with the VA where required.
- 02
Plans, budget and VA appraisal
The VA appraiser values the home from the plans and specifications, and the loan is sized from the land and the construction budget.
- 03
We find a lender that builds
Few lenders offer VA construction loans, and their requirements differ. We match your project with one that does and follow it through to move-in.
Program Highlights
Why veterans build with VA.
- One closing for the land, the construction and the permanent VA loan
- No down payment for eligible borrowers with full entitlement
- No monthly mortgage insurance
- Builder paid in stages as work is inspected and completed
- The funding fee can be financed, and exempt borrowers pay none
- Becomes a standard VA mortgage once you move in
Common Questions
What veterans ask about VA construction loans.
It is a VA-guaranteed loan that pays for building a new home and then becomes your permanent mortgage. With a one-time close, you close once before construction starts, rather than taking a separate construction loan and refinancing later.
Relatively few lenders do, and each sets its own rules for builders, credit and project size. As a broker, we know which of our wholesale lenders offer VA one-time close loans and which one fits your plans.
You need a Certificate of Eligibility, income and credit that meet the lender's standards, and the home must be your primary residence. The builder must be licensed and approved by the lender, and the plans and budget are reviewed before closing. Lenders often set higher credit minimums for construction than for a standard VA purchase.
For eligible borrowers with full entitlement, yes, as long as the total cost fits within the appraised value and the lender's limits. A one-time VA funding fee may apply unless you are exempt.
Not on its own. The VA does not finance vacant land with no home planned. A one-time close loan can include the purchase of the lot as part of building your home.
It depends on the lender. Some build interest into the loan during construction, and others ask for interest payments on what has been drawn. We will explain how your lender handles it before you commit.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Plan your VA build across our lender network.
Tell us about the land, the builder and the home you want to build. We will find a lender that offers VA construction and show you the path.