Eligible veterans can finance new construction with little to no down payment and transition into a permanent loan.
VA Construction Loans provide eligible veterans, active-duty service members, and certain military spouses with the opportunity to finance the construction of a new home using their VA loan benefits. This allows borrowers to build a custom home while taking advantage of flexible terms and potentially little to no down payment.
These loans can be structured as a one-time close, where the construction loan converts into a permanent mortgage after completion, or as a two-time close depending on the lender and project. During construction, funds are typically disbursed in stages as the project progresses.
This program is best suited for borrowers who want to build rather than purchase an existing property and are working with licensed, approved builders. Borrowers must meet VA eligibility requirements, demonstrate the ability to repay the loan, and have plans and budgets approved prior to closing.
VA Construction Loans offer significant advantages, including no private mortgage insurance (PMI) and flexible credit guidelines compared to many conventional construction loans. However, the process is more detailed and requires coordination between the borrower, builder, and lender.
We offer VA Construction Loan programs in Washington, Oregon, California, and Arizona, and guide borrowers through every stage—from land acquisition and planning to construction and final loan conversion.