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    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 $0 down and no PMI, subject to VA loan eligibility requirements.

    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

    1

    Find a VA-Approved Builder

    Work with a builder experienced in VA construction loans

    2

    Get Pre-Approved

    Submit your VA loan application with construction plans and builder contract

    3

    Appraisal & Plans Review

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

    4

    Construction Begins

    Funds are disbursed in draws as construction milestones are completed

    5

    Final Inspection

    VA inspector verifies completion and compliance with VA standards

    6

    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

    FAQs

    Frequently Asked Questions

    Quick Answer

    A VA one-time-close construction loan finances the lot, the build, and the permanent mortgage in a single closing with $0 down and no PMI. You lock your rate once, pay one set of closing costs, and make no principal payments during construction. Valor Home Mortgage offers it to veterans building in San Antonio, Schertz, Cibolo, Boerne, and New Braunfels.

    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.

    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.

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

    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.

    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.

    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.

    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.

    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.
    Related Resources

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    Reviewed by Jonathan Mullins, Founder & Mortgage Loan Originator, NMLS #94015Last updated