VA Construction Loan/ One-Time Close (OTC)

Plan, develop and construct your dream home in a single VA Loan product.

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What is your branch of Service?

What is your branch of Service?

What is the VA Construction Loan?

VA Construction Loans are for military members who want to build a new home using a VA Loan. With this loan you can buy land (or an existing home) and pay for the planning, developing, and construction of the home all in a single loan product. It’s all done in one so there’s no need to buy land separately with a land loan and refinance to a VA Loan. You can also include the demolition of an already built house into the cost of the build.

What are the benefits of a VA Construction Loan?

  • You can build your dream home from the ground up
  • The demolition of an already built house can be bundled into the loan
  • Take advantage of the many VA Loan benefits
  • There is no private mortgage insurance (PMI)

VA Construction Loan Requirements

The property requirements are the same as those for a normal VA Loan purchase. The builder must also register with the VA in order to be approved. If this is a loan you’re interested in, an expert from our team can help get you started!

What is the Funding Fee for the VA Construction Loan?

The VA Construction Loan is subject to a funding fee which is added to the total loan. These fees are paid to the Department of Veterans Affairs and are collected in order to offset the bank or lender's losses if you were to default on your mortgage. These funding fees are the same as traditional VA Loans and are set at 2.3% for first time users and 3.6% for subsequent use. Exceptions are made when a veteran has 10% or greater disability or an active duty member has been awarded the purple heart.


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