VA One-Time Construction Loans

The VA one-time close construction loan lets an eligible borrower use their VA entitlement to build rather than buy. The loan funds the construction in draws and then converts to a permanent VA mortgage at completion, all under one closing. That structure matters on a build: you are not left carrying a short-term construction note while hoping a separate permanent loan comes together months later.

The core VA advantages carry over. There is no monthly mortgage insurance on a VA loan, and the program's down payment requirements are more generous than conventional financing for borrowers with full entitlement. Most VA loans include a one-time funding fee, which varies by service category, entitlement usage, and down payment, and is waived for certain borrowers such as those receiving VA compensation for a service-connected disability. The home must be intended as your primary residence.

The practical hurdle is usually the builder rather than the borrower. VA construction financing requires a licensed, VA-registered builder who is willing to work within the program's contract, warranty, inspection, and draw requirements, and not every builder is set up for that. Start those conversations early. Bring your Certificate of Eligibility, the builder you are considering, and the lot details to us before contracts are signed, and we will tell you plainly whether the pieces fit together.