The Short Answer
You can absolutely use a VA loan on a new build in Schertz, Cibolo, Boerne or anywhere along Loop 1604 and US-281 — you are financing a completed home at closing, exactly like a resale. The traps are builder incentive strings, long build timelines against a rate lock, and signing a contract before a lender reviews it.
Two different things get called a 'VA construction loan'
The first is a true VA one-time-close construction loan, where VA finances the build itself. It exists, but it is rare and few builders will work with it.
The second — and what almost every San Antonio buyer actually does — is buying a builder's spec or to-be-built home with a standard VA purchase loan that funds at completion. The builder carries their own construction financing; you close on a finished house.
Builder incentives and the lender requirement
Most production builders offer closing cost credits only if you use their in-house lender. That is legal, and you are still free to decline. Run the math on the whole deal: an incentive can be worth less than the rate and fee structure you get elsewhere, and we charge no lender fees at all.
Rate locks on a nine-month build
If your home completes in eight months, a 30-day lock is useless. Extended locks and float-down options exist, and they carry cost. Have that conversation at contract signing, not at month six.
Do not skip your own inspection
A new build passes the VA appraisal easily in most cases, and buyers take that as proof of quality. It is not. The VA appraisal confirms value and minimum property requirements, not workmanship. Hire an independent inspector for a pre-drywall walk and a final walk.
Written and reviewed by Jonathan Mullins, Founder & Chief Mortgage Officer at Valor Home Mortgage · NMLS #94015 · U.S. Army Veteran · 23+ years in mortgage lending.
Last updated .