Home Ownership
VA Construction Loan

VA Construction Loans- Start To Finish

The VA Construction Loan is a home loan program that provides financing for the purchase of land, home construction, and home additions. There are many benefits to obtaining a VA construction loan, like no down payment, making it an attractive option for those who qualify. However, some guidelines must be met before qualifying for this type of loan—we'll cover those in this article!

What Is A VA Construction Loan?

Our VA construction loan product allows qualified veterans or service members to purchase land and finance the entire cost of the construction into the loan in one closing. There are many benefits to this type of loan for service members or veterans who qualify for it.

VA Construction Loan Benefits

Benefits include: 

  • No down payment
  • Better terms and interest rates than conventional loans
  • Lower closing costs than regular mortgages
  • No mortgage insurance requirement

VA Construction Loan Requirements


  • You must be a an active-duty service member or veteran to qualify for a VA Construction loan
  • Have sufficient assets needed to retain a contractor

VA Construction Loan Approval Process

Find A Lender And Get Pre Approved

To get approved for a VA construction loan, you will need to apply through a bank, credit union or another kind of lender that offers VA loans. Finding a lender offering VA construction loans can be difficult, even if they provide standard VA purchase loans.

Once you find a lender, you’ll need to provide them with the following documents:

  • Pay stubs
  • Bank statements
  • Statements from any investment accounts or retirement accounts
  • Driver’s license or other photo ID
  • Deed to the land, survey, and settlement statement (if you already own the land)
  • The purchase agreement for the land (if you haven’t purchased it yet)
  • The construction contract with the builder

Find A Registered Builder

To qualify for a VA construction loan, you must work with a VA-registered licensed and insured builder. Your lender may have a list of approved builders, or you may ask your preferred builder to go through the VA registration process. You can search for a VA-registered builder through the Veterans Information Portal.

Once you find your builder, you’ll need to submit the plans for construction to your lender, including paperwork describing the home design, specs, building materials, lot, and the future home site.

Get A Home Appraisal

Even though your home isn’t built yet, you will still be required to get a VA home appraisal based on the project's plans. To ensure that the home meets the requirements, go for a home with designs and plans that align with the area's standards. 

Close The Loan

With all the extra paperwork required to get approval; it can take 45 to 60 days or longer to process a VA construction loan. Make sure your builder and/or owner of the land you intend to build on knows the timeline. 

Get A VA Inspection 

After construction is finished, you’ll need a VA inspection to certify that the home was built according to specifications.

Benefits Of Building A New Home

A new home is a great investment. It can be more expensive than an older home, but it has several advantages that make it worth the cost. Here are some of the benefits of building a new home:

  • Get a home that’s built for your family
  • Construct a home that’s perfect for you and your lifestyle
  • Have the exact floor plan you want
  • Avoid hidden maintenance costs
  • Build a home on the lot of your choice
  • New homes are cheaper to heat and cool
  • New homes are more energy efficient, which means lower utility bills for you
  • New homes are easy to maintain because they’re built with modern materials and techniques
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We hope that this article has given you a better understanding of the VA Construction Loan program. If you have any questions about the process or want to speak with someone from our team, please click here for more information on the VA construction loan.