Can you build a house with a VA loan?

Yes. The VA one-time-close construction loan covers land acquisition, construction draws, and the permanent mortgage in one transaction with zero down payment for eligible veterans.

How does a one-time-close construction loan work?

You close once before construction starts. Funds are released to the builder in draws as work is completed, and when the home is finished the loan automatically converts to your permanent VA mortgage — no second closing or requalification.

Do I need a down payment for a VA construction loan?

No down payment is required with full entitlement, as long as the total loan does not exceed the appraised value of the completed home.

What builder requirements apply?

The builder must be VA-registered with a valid VA Builder ID, carry appropriate licensing and insurance, and provide a one-year warranty on the completed home.

How long does VA construction financing take?

Underwriting and closing usually take 30-45 days because plans, specs, and builder documents must be reviewed. Construction itself typically runs 6-12 months depending on the builder.

Can I use a VA loan to buy new construction in San Antonio?

Yes. Buying a completed or nearly completed home from a builder is a standard VA purchase, and it is the most common way JBSA families use the benefit on new construction. The builder and property must meet VA requirements and the home must pass a VA appraisal.

Does the builder have to be VA approved?

For a completed home purchase, the builder does not need special approval, though the property must meet VA Minimum Property Requirements. For a true VA construction-to-permanent loan, the builder must be VA registered and carry a valid builder ID.

Can I lock my rate while the home is being built?

Extended rate locks are available on many new-construction files, and some builders offer forward commitments through their affiliated lender. We compare our zero-lender-fee VA pricing against the builder incentive so you can see the true cost of each option.

VA Loan Guide

VA One-Time Close Construction Loans

Build your dream home with one closing, one set of fees, and no down payment using VA One-Time Close financing

✓Veteran-Owned

✓Top 1% Nationwide

✓2,500+ Families Served

Construction Loans

What is a VA Construction Loan?

A VA One-Time Close Construction Loan allows eligible Veterans to finance the building of a new home with just one closing and one set of fees. Enjoy all the benefits of a standard VA purchase loan—including no down payment and no PMI.

VA Construction-to-Permanent Loan

Single-close loan that covers both construction and permanent financing

One closing, one set of fees
Rate locked from start
Smoother process

VA Construction-Only Loan

Short-term loan for building, refinanced to permanent after completion

Two closings required
Rate set after construction
More flexibility

VA Construction Loan Benefits

No Down Payment

Finance 100% of the construction costs (land + building)

No PMI

Save hundreds per month with no private mortgage insurance

Competitive Rates

Enjoy lower interest rates than conventional construction loans

Custom Design

Build exactly what you want from the ground up

Energy Efficient

Include modern, energy-saving features from day one

New Home Warranty

Peace of mind with builder warranties on new construction

The VA Construction Loan Process

Find a VA-Approved Builder

Work with a builder experienced in VA construction loans

Get Pre-Approved

Submit your VA loan application with construction plans and builder contract

Appraisal & Plans Review

VA appraiser reviews plans and provides 'subject to completion' appraisal

Construction Begins

Funds are disbursed in draws as construction milestones are completed

Final Inspection

VA inspector verifies completion and compliance with VA standards

Conversion to Permanent Loan

Construction loan converts to standard VA mortgage

Requirements for VA Construction Loans

Detailed construction plans and specifications
Licensed, VA-approved general contractor
Builder's warranty and insurance
Timeline and milestone schedule
Itemized cost breakdown
Lot ownership or purchase agreement

Important: Not all lenders offer VA construction loans. Work with a lender experienced in VA construction financing.

Ready to Build Your Dream Home?

Connect with our VA construction loan specialists to start your custom home journey