What is a VA construction loan?

A VA construction loan allows eligible veterans to build a new home with zero down payment. It combines construction financing and permanent mortgage into a single loan with one closing, making it easier and more affordable than traditional construction loans.

Do VA construction loans require a down payment?

No, VA construction loans require zero down payment for qualified veterans. This is one of the key benefits that makes VA construction loans more affordable than traditional construction loans, which typically require 20-25% down payment.

What are the eligibility requirements for VA construction loans?

To be eligible for a VA construction loan, you must meet VA service requirements (90 days active duty during wartime, 181 days during peacetime, or 6 years in National Guard/Reserves), have a valid Certificate of Eligibility (COE), use a VA-approved builder, and the property must be your primary residence.

How does the VA construction loan process work?

The VA construction loan process involves: 1) Pre-qualification and getting your COE, 2) Selecting a VA-approved builder, 3) Construction phase with regular inspections, 4) Final closing where the construction loan converts to a permanent VA mortgage. The entire process uses a single closing, making it simpler than traditional two-close construction loans.

What is the VA funding fee for construction loans?

The VA funding fee for construction loans is typically 2.3% for first-time use with no down payment, 3.6% for subsequent use with no down payment, 1.65% with 5-10% down payment, or 1.4% with 10% or more down payment. The funding fee can be financed into the loan amount.

Can I use any builder for a VA construction loan?

No, you must use a VA-approved builder for VA construction loans. The builder must meet VA requirements and be approved by the VA. Your lender can help you find VA-approved builders in your area.

Exclusive Veteran Benefits

VA Construction LoansBuild Your Dream Home with Zero Down Payment

The only construction loan program that allows veterans to build their perfect home with no down payment, single close process, and competitive rates.

Down Payment Required

Single Close Process

Government Backed

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VA Loan Hub: Explore All VA Loan Programs

Comprehensive VA loan resources organized by topic. Navigate through our complete collection of VA loan programs and guides.

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VA Construction Loans

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Build your dream home with VA loan benefits, including land purchase and construction.

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All VA loan programs are designed exclusively for veterans, active duty military, and eligible spouses.

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Page Contents

Navigate to any section below to learn more about VA construction loans

VA Construction Overview

How VA construction loans work

Eligibility Requirements

Who qualifies for VA construction loans

Construction Calculator

Calculate your loan amount

Construction Process

Step-by-step building process

Key Benefits

Advantages of VA construction loans

Builder Requirements

VA-approved builder criteria

VA vs Traditional

Compare construction loan options

FAQ

Common questions answered

VA Construction Loans

VA construction loans combine VA loan benefits with construction financing, allowing eligible veterans to build their dream home with no down payment. This program covers both the construction costs and permanent mortgage in a single loan.

Key Benefits

No down payment required
Single closing process
VA funding fee can be financed
Competitive interest rates
No monthly mortgage insurance

Eligible Projects

New home construction
Major renovations
Energy-efficient improvements
Site preparations
Manufactured home installation

VA Construction Loans: Build your perfect home with zero down payment

Down Payment

For qualified veterans

Closing

Single close process

12mo

Build Time

Maximum timeline

Builder

Must be approved

VA Construction Loan Calculator

Calculate your construction loan amount, monthly payments, and total project costs

Loan Details

Home Value (After Construction)

Construction Cost

Interest Rate (%)

Loan Term (Years)

VA Funding Fee (%)

Auto-Calculating

Results update automatically as you change the inputs above.

Loan Calculation Results

Total Loan Amount

$408,000

Including VA funding fee & closing costs

Monthly Payment

$2,576

Principal & interest

VA Funding Fee

$8,000

Can be financed

Down Payment

Zero down required

Loan Breakdown

Construction Cost$400,000

VA Funding Fee (2.3%)$8,000

Closing Costs (Est. 2.5%)$10,000

Total Loan Amount$408,000

Important Note

This calculator provides estimates only. Actual loan terms and amounts may vary based on your specific financial situation, credit score, and VA loan eligibility. Contact us for a personalized pre-qualification.

Everything You Need to Know

Comprehensive information about VA construction loans, requirements, and the building process

Requirements

Eligibility & qualifications

Builder Requirements

VA-approved builder registration
Valid builder's license
Minimum 2 years experience
Strong financial position
Good reputation and references

Property Requirements

Meet VA property standards
Primary residence only
Detailed construction plans
Building permits secured
Approved construction timeline

Required Documentation

Builder VA registration
Construction contract
Building plans/specs
Cost breakdown
Construction timeline

Building permits
Builder's risk insurance
VA Certificate of Eligibility
Standard loan documents
Property appraisal

Important Considerations

Construction must be completed within 12 months
Changes to plans require VA approval
Regular inspections required during construction
Contingency reserve may be required
Builder must provide warranty

Construction Process

Step-by-step timeline

Pre-Approval

1-2 weeks

Verify VA eligibility

Credit & income review

Builder approval check

Preliminary approval

Plan Review

2-3 weeks

Submit construction plans

Cost breakdown analysis

Builder documentation

VA plan approval

Construction Phase

6-12 months

Draw schedule setup

Construction inspections

Progress payments

Change order management

Final Conversion

2-3 weeks

Final inspection

Certificate of occupancy

Permanent loan conversion

Move-in coordination

VA vs Traditional

Key differences

VA Construction Loans

• Zero down payment
• Single closing
• Lower credit requirements

Traditional Loans

• 20-25% down payment
• Two closings
• Stricter requirements

Explore All VA Loan Programs

Browse our complete collection of VA loan options

VA Purchase Loans

Buy your home with no down payment and competitive VA loan rates.

View Guide

VA IRRRL (Streamline)

Refinance your existing VA loan with minimal paperwork and reduced documentation.

Learn More

VA Cash-Out Refinance

Access your home's equity while refinancing with up to 100% of your home value.

Explore Option

VA Renovation Loans

Renovate or improve your existing home with VA benefits and renovation financing.

Renovate Now

VA Loan Calculator

Calculate your monthly payments, funding fees, and total loan costs.

Calculate Now