VA construction loan
Build a home with a VA one-time close construction loan.
The VA one-time close construction loan combines the lot, construction, and permanent financing into a single closing. You lock your rate, protect against construction-period cost overruns, and move to permanent financing seamlessly—no second closing, no rate uncertainty.
- $8.6B+volume in the last five years
- 85%of our closed loans are VA
- 500K+military families educated
Why one-time close matters
Traditional construction financing requires two closings: one for the construction loan and one to convert to permanent financing. Two closings means two sets of closing costs, two underwriting processes, and rate uncertainty—because your permanent rate is not set until you convert. The VA one-time close eliminates that risk and cost.
How the process works
Phase 1: Pre-close
Approve the plans, builder, and lot. VA appraisal is based on plans and specifications—not the finished structure. Underwrite your file as a permanent mortgage.
Phase 2: Single closing
One signing, one set of closing costs. Your permanent rate is locked at this point. Construction draws begin.
Phase 3: Construction period
Interest-only payments during the build (typically 6–12 months). Draws released to builder at verified milestones by an inspector.
Phase 4: Permanent phase
Automatically converts to your permanent loan once construction is certified complete. No second closing, no rate reset.
Requirements to plan around
- Licensed general contractor required—VA does not approve owner-builder construction in most programs.
- VA appraisal based on plans and specifications before breaking ground.
- Property must be your primary residence on completion.
- VA funding fee applies as it does on a purchase loan.
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