If you’re a veteran or active-duty service member, building your dream home is more than just a possibility—it’s a benefit you’ve earned. In a housing market defined by low inventory and high competition, VA construction loans offer a strategic path forward. These loans allow you to finance both the land and the home you plan to build with a single mortgage and no down payment.
VA loans are backed by the U.S. Department of Veterans Affairs and known for lenient credit requirements, low rates, and no private mortgage insurance (PMI). Using a VA loan for land purchase and construction is an ideal solution for those who want customization, value, and long-term savings.
Your Best Mortgage Options — Instantly
Get matched with vetted mortgage lenders in minutes
Save time with one simple form — no need to shop dozens of sites
No credit impact. No sales pressure. Just the best fit for your goals
Veteran lending specialist available to you, no matter where you are
In-house processing and underwriting
Express Loan Approval program, which allows you to be done with the whole process (minus the contract and appraisal), so you can focus on finding your home.
Rate Protect (Lock & Shop) lock in your rate before you even find a home!
According to recent data from the Mortgage Bankers Association, VA loan applications for new construction have increased—even as conventional construction loans have slowed. The primary driver? Scarcity of move-in ready homes.
Rather than waiting months or overbidding on existing homes, many veterans are choosing to build. This approach lets them design homes tailored to their lifestyle and avoid intense bidding wars.
Top Reasons to Build with a VA Loan:
Customization: Choose everything from layout to energy-efficient upgrades.
Equity Upside: Build in areas with rising property values and create instant equity.
Long-Term Savings: Avoid costly renovations and get a home built to last.
What Is a VA Construction Loan?
A VA construction loan is a short-term mortgage that transitions into a traditional VA loan once the home is complete. Also known as a “single-close” or “one-time close” loan, this product is specifically designed to fund land acquisition and home construction under one umbrella.
How It Works:
Pre-Approval: Determine how much you can borrow and lock in a rate.
Land Acquisition: Use the loan to purchase land (if not already owned).
Builder Selection: Choose a VA-registered builder.
Construction Phase: The lender disburses funds in stages, known as “draws.”
Final Inspection: A VA appraiser confirms the home meets VA standards.
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.