VA Construction Loans: How to Build a Home with a VA Loan

Building your dream home is a possibility with a VA home loan. But it isn’t always an easy road.

This no-down payment program allows qualified borrowers to use their VA entitlement to obtain a mortgage for new construction. The issue is that it can be challenging for VA borrowers to locate a lender willing to issue a construction loan. The VA doesn’t actually make home loans; rather, it basically insures them. It’s up to individual VA-approved lenders to determine what kind of loans they’ll issue.

There’s a level of risk in new construction that many are shying away from in the wake of the housing market collapse.

What’s increasingly common is that veterans need to secure a construction loan from a builder or a local lending institution. As the homebuilding process wraps up, qualified borrowers can then refinance that short-term construction loan into a permanent VA mortgage.

Getting a Construction Loan

Because it’s tough to find VA lenders out there willing to pay the up-front costs of construction, many veterans wind up using a homebuilder or a local financial institution. That can present hurdles like a down payment, which may be required to secure a construction loan. You can and should talk with as many builders and local banks as possible. Look for the best possible terms out there in terms of down payment, closing costs and more.

Some builders may have programs or deals especially for veterans and military families to build a home. Be sure to do your homework on the company and ensure it’s a legitimate builder with a track record of success and satisfied homeowners.

You can also check with lenders to see if they’ll actually do a true VA construction loan, where the lender pays draws to the builder as the project progresses. But know going in that you might struggle to locate one. Like so many other lenders, Veterans United does not make construction loans to build new homes.

Refinancing a Construction Loan

You’ll have considerably better luck locating VA lenders willing to turn that short-term construction loan into a long-term VA loan. This is something Veterans United can help you with.

These loans are typically treated like purchase loans rather than refinances. That means prospective borrowers will need to meet the same credit, debt-to-income, residual income and other requirements as a veteran purchasing an existing home. VA lenders require builders to provide a one-year warranty.

The home will need to have a VA appraisal and be constructed by a builder with a valid VA builder ID. These are just a couple of reasons why it’s important to talk with a VA lender at the beginning of your new construction journey. Lining up a construction loan is obviously the critical first step, but you’ll need to be able to turn that short-term loan into a long-term mortgage once the home is built. That’s not something you want to wait to explore.

Talk with a Veterans United loan specialist at 855-870-8845 about turning a construction loan into a permanent VA mortgage. You can also fill out a VA loan application and get a call back.

Next step: Find Out Which Properties Are Eligible for VA Loans

120 responses to “VA Construction Loans: How to Build a Home with a VA Loan”

  1. francesca says:

    thank you for being there for the veterans !!!!!

  2. Super Thanks for your helping Our Veterans! |Nate +1

  3. That is great news. Why? My neice’s husband is a builder!

  4. Quinton Morris says:

    How can i add on or and remodel with my VA benefits? I have a small house and need updating and adding on is there a way??

  5. Megan says:

    I called BB&T and asked them if it was possible for them to do a construction to perm loan and allow me to use a va loan and they told me no. That i would only be allowed to usea conventional loan. Is there anymore information you can give as to what banks will do this? It’s upsetting to have a va loan we can use, but can’t actaully use it. 🙁

  6. David Johnson says:

    Do you offer VA Construction-to-Permanent Financing loans

    • Chris Birk says:

      @David: We do construction-to-perm. You can talk with a Veterans United loan specialist at 888-212-1958.

      • Jbear says:

        look gentlemen and lady’s i’ve built homes until I was unable to due so because of my health and am 100 % disabled military. I am planning on doing what a had done for many years for myself and that is “com-binding both the land and “new” construction loan into a loan package” there are ways to do this and it gets even much easier if you own “your property” (collateral) for construction loan also its easier to get an investor or Bank to put up money for the loan because you are owner of property your building on which means one of two things finish construction get loan done get the keys, D-fault you have a happy investor or bank that now owns “your” lot and home OCH! it happens FLY strait and good luck to all…….

        Mr. Birk,
        thanks for trying to help out the vets looking to build ! but in the end if you have no knowledge in the field of basic loan principles and or construction, your better off buying a listed home and be done ! wouldn’t you agree just saying……….I personally Know Lot of people who thought they knew, thought they could and tried , but in the end lost and destroyed there credit and lost $$$ . (beware of shoddy contractors ) and always figure 20-25% above contract for construction!!!! hope this helps …..

  7. […] tough to find VA lenders willing to actually do construction loans right now. It’s more common to get a short-term loan from the builder and then refinance that […]

  8. Logan says:

    Just called, basically I understand that if I buy a lot in a place and want to do a construction to perm loan, that veteran’s united cannot help with a VA loan under those circumstances.

    • Chris Birk says:

      @Logan: It depends — there are two variations on a construction-to-perm. We don’t finance the actual construction of the home by paying the builder directly — and neither do a lot of lenders. The type of construction-to-perm we do is more common and involves refinancing a construction loan (often from the builder) into a VA loan.

  9. Michael says:

    VA Loan Insider has misrepresented itself by advertising that they can do VA Construction Loans. I called today and was highly upset that no one could aid me in attaining a VA construction loan. This is false advertising!!!

    • Chris Birk says:

      @Michael: I’m sorry if you were confused by the post, but it doesn’t say that Veterans United does construction loans. The post says that there are two ways to do new construction with a VA loan, and one (construction-to-permanent financing) is more common than the other (having a lender actually fund the construction). Nowhere in the post does it say that we do either of these. As you learned after calling, Veterans United handles new construction through the construction-to-permanent financing method. Like most VA lenders out there, we don’t finance the actual construction of the property.

  10. Jimmy E. McMillian says:

    My spouse and I can not find anyone to give us a VA construction loan. Construction-to-Perm loans have a high LTV ratio and they want money in a reserve account along with a hefty down payment of 20% or higer regardless of your income or debt ratio. This is almost unaffordable depending on the cost of your home and savings account. It is really disappointing the VA does not have lenders veterans can consult for a potential VA construction loan. Not everyone purchases homes already standing and some cities where veterans live do not have builders willing to carry the construction loan until the project is complete and home ready for occupancy. Extremely frustrating and disappointing as the banks are doing everything to protect themselves from the mess they created during the housing bubble by offering bad loans to people with an inability repay the loans. While those of us that have the income, great credit scores and low debt ratios are penalized for thier lack of integrity in business practices.

  11. Tanner says:

    Can a buyer borrow the money and build the home himself/herself? or does it have to be through a licensed builder

    • Chris Birk says:

      @Tanner: The bigger issue is finding a VA lender that will actually pay for the construction up front. New construction is risky, and many VA lenders are no longer actually fronting the money for new homes. What’s increasingly more common is to get a short-term loan from a builder or lending institution and then refinance that short-term loan into a VA loan using what’s called a construction-to-permanent loan. You can talk with a Veterans United loan specialist about construction-to-permanent loans at 888-212-1958.

  12. […] to the rising price of homes. This is causing more people to think about selling their homes and new construction is starting to take off once again. The rising price of homes is also cutting back on the investor […]

  13. Keith Grove says:

    Stop using the term permanent to construction because all you are doing is a mortgage for new construction.

    • Chris Birk says:

      @Keith: I use the term because that’s what it is. It’s not a mortgage for new construction. The lender isn’t loaning you money to actually construct the home. You’re using a construction loan to build a home and then securing permanent financing, hence the name. Calling it a mortgage for new construction also needlessly confuses borrowers, as many VA lenders don’t finance the construction of a home — but they do offer construction-to-permanent financing.

  14. Chris Birk says:

    @Kevin: Talk with a lender and/or your builder about using the land as collateral. Since it’s tough to find VA lender that will actually pay for construction, you’re likely to have a down payment to a builder or local lending institution on a construction loan.

  15. Monica says:

    What if the land/lot needs to be financed as well?

  16. Angela Mcmillan says:

    i am just not understanding i guess.could you please detail it out for me just what (construction to permanent loan) means.you can start with the knowledge that i want a piece of property with a home i want built my way.and i am hoping it is va/1st time buyers zero down.

    • Chris Birk says:

      @Angela: It’s difficult to find VA lenders willing to actually provide a construction loan — to actually front the cost of building the house. It’s something allowed under the VA loan program, but most VA lenders don’t offer them right now. So what’s more common is that veterans get a construction loan from a builder or another financial institution. Then, once the home is built, they can look to refinance that construction loan into a VA loan. The issue with this route is that you’ll typically need a down payment to get a construction loan from a builder or bank.

      • Donna says:

        Hi Chris and others: I have my land bought and paid for and have about $70,000.00 total into project so far. I have not been able to find a lender to finance construction of my home. All want at least 20% down with added contingency. I have been working on this for 4 years now. All I want is my house built because I do not have so I can live in it and quit paying rent and an enormous amount to the IRS each year because I do not have a mortgage to offset income. Can your organization help?

      • Literally NoOne says:

        @ChrisBirk:disqus How much usually is the down payment from the builder or local bank? Does it depend on the total price of the completed home I am guessing?

        • Chris Birk says:

          It’ll vary depending on the lender/builder. Could range anywhere from 5 percent to 20 percent. Definitely a big reason to shop around and see what’s out there.

  17. Chris Birk says:

    @Ryan: What exactly is it you’re wanting to know? We help thousands of veterans obtain home financing every year as the nation’s largest dedicated VA lender. If you’re asking about construction loans in particular, as I said to Michael, like most VA lenders, we don’t make construction loans. But we do help veterans refinance them into permanent, fixed-rate VA loans.

  18. Q says:

    “The VA also allows lenders to finance the actual construction and pay builders and contractors as they work on the home. This path sidesteps the need for a construction loan.” This is right from your website. So I don’t understand why you say you can’t do this.

  19. Ana Banan says:

    When you take out a construction loan OR a ‘construction-to-perm” loan, the equity in the land you are developing on IS counted toward your down-payment.
    However, Chris is reiterating that each lender has a different set of criteria that this would apply (i.e. they may require a combination of cash and land equity based on your credit score, DTI, etc. — ALL of which have extremely stringent requirements for the borrower…which is a shame because Wall St is STILL de-regulated and it is those Americans who have paid their bills despite trying circumstances are being punished for that sectors complete and utter lack of integrity, pillaging of teacher/state worker/police-fireman pensions/trusts and shameless fraud and economic derailment of our nation’s financial standing/credit rating!)

  20. Ana Banan says:

    Nearly all lenders don’t wish to go thru the administrative bureaucracy of dealing with the VA during the construction process, you end up being limited to choosing from conventional loan packages called “construct-to-perm” where you agree to roll your construction loan into a conventional mortgage with that same lender who provided you with the construction loan. This smacks in the face of you being able to use your VA home loan benefit!
    Add to that the current state of our nation’s financial sector and the recent and more stringent standards to finance a home mortgage, Veterans are also impacted by many of the same tough qualifying criteria as the private sector (…and had Wall St been given equally stringent criteria by abiding by FDRs REGULATED markets, we wouldn’t be in this economic climate!)
    As a consumer, you must realize that by themselves, the construction loan is a high risk loan because it is based on a build that does not exist yet. So many lenders restrict the construction loans to a “construct-to-perm” loan, which means you will agree to “roll”/)finance your home mortgage with the lender at the end of the construction process.
    You can find a lender who offers (as separate loans) construction loans *and* VA home loans (– rare, but they do exist — and remember to check your local credit unions and military-affiliated credit unions as well!) or go the construct-to-perm loan type in the conventional realm and then refi as a VA home loan at a later time. One thing I’ve not yet vetted is if one can do a “construct-to-perm” loan and at the end of the construct loan phase, pursue a VA home loan from a new lender despite the construct-to-perm loan condition.

  21. Chris Birk says:

    @Pam: It can vary by lender. Some may do it as either a purchase or a cash-out, depending on the loan-to-value. But it wouldn’t have an impact on loan amount, and you could seek to recoup with either path.

  22. Chris Birk says:

    @Ryan: You wouldn’t be able to use a VA loan to purchase land alone, and there isn’t a refinance opportunity given that the loan is paid in full. You’d likely need to look at other loan options.

  23. savontb82 says:

    I am not sure why the term construction-to-permanent is so confusing and controversial. It simply means that the existing construction loan is being converted to a permanent loan. By definition, a construction loan is temporary, lasting long enough to complete the construction process. Unless the purchaser is in a financial position to pay that loan in full upon completion, another (long-term) loan is necessary. This would be the permanent loan/Mortgage.

    My husband and I are planning to build a house using the VA loan within the next year and we too are having difficulty finding a lender. We will probably end up getting a builder to finance construction, as Chris has suggested, then using a traditional lender for the mortgage. I am glad I found this site, which is very informative. My observation is that the site serves two main purposes: 1. to promote the financial services offered by Veterans United and 2. to provide information about the VA Loan Program. It seems that some readers are confusing the two. Just because the VA Loan Programs allows certain things does not mean that Veterans United or any other lender necessarily offers all of those services.

  24. jeremy vandegriffe says:

    I have land and a little bit of money saved up to build a house. I was looking at this construction to perm loan your talking about and the requirements say I have to have someone build my house that the VA says is qualified. What I take from this is that I can’t build my own house to save money and not have to pay ridiculous costs to builders to have there workers stand around and take there sweet time building the house. I can do that myself. If I build my own home could I have it inspected by a VA company instead?

    • Chris Birk says:

      @Jeremy: It is possible to build your own house with a VA loan. There is additional paperwork and exceptions, but you can absolutely look to do this. You can talk with a Veterans United loan specialist for more information at 888-212-1958.

  25. Chris Birk says:

    @James: Thanks for writing and for your service to our country. It’s difficult to find VA lenders out there willing to actually front the costs of new construction. Like most, this isn’t something we offer. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion.

    The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 888-212-1958 anytime.

  26. Chris Birk says:

    @Rebecca: Thanks for writing. Congrats on starting this journey. This post has a good explanation of the environment surrounding VA construction loans:

    http://www.veteransunited.com/valoans/how-to-build-a-home-with-a-va-loan/

    It’s difficult to find VA lenders out there willing to actually front the costs of new construction. Like most, this isn’t something we offer. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion. Construction loans often require a down payment.

    The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 888-212-1958 anytime.

    Let me know if you need anything else.

  27. Chris Birk says:

    Thanks for writing and for your service to our country. Costs are going to vary depending on the lender. You can talk with a Veterans United loan officer at 888-212-1958.

  28. Chris Birk says:

    @Chasidy: Thanks for writing and to your husband for his service to our country. I can understand the reaction, but it’s not a matter of questioning commitment. Lenders want to see stable, reliable income that’s likely to continue, so depending on the type of work he’s doing and how it relates to his previous work/education/experience, they may want to see a two-year history. Different lenders can have different requirements, so having less than two years may not be a problem for others.

    It’s hard to say about the down payment piece, as it can also depend on the lender. It’s tough to find VA lenders doing true $0 down construction financing.

    Like most, that’s not something we offer. But we do help veterans and military members refinance construction loans into permanent VA mortgages. You can talk in more detail with a loan officer here at 888-212-1958.

  29. Chris Birk says:

    Thanks for writing and for your service to our country. I’m sorry to hear about your situation. It can be tough to find VA lenders out there that will finance new construction. It’s more common to get a construction loan from a local lending institution and then look to basically refinance that short-term construction loan into a permanent VA mortgage. The latter part is something we do, but, like many lenders, we don’t finance the upfront costs of new construction. You can talk with a loan officer here at 888-212-1958 to see if they have any suggestions based on where you’re building and to learn more about how to handle the longterm aspects once you’re hopefully able to land a construction loan. Hope that helps. Let me know if you need anything else.

  30. Chris Birk says:

    @Adlee: You’d need to talk with individual builders and lenders about their down payment requirements for construction loans. It’s tough to find VA lenders who will do true $0 down construction financing.

  31. Chris Birk says:

    @Adlee: New construction can come with a fair bit of risk, and it’s something that many VA lenders have shied away from in recent years. Regarding your credit questions, you might talk with the Lighthouse Program here at Veterans United. If we’re not able to prequalify borrowers, they have the opportunity to work for free with our Lighthouse Program. They work with veterans, service members and their families for free to develop a plan to repair their credit and get on the path to loan prequalification. Visit https://lighthouse.veteransunited.com/ for more info.

  32. Chris Birk says:

    @Antonio: Thanks for writing and for your service to our country. Yes, the VA technically allows for these loans, but I don’t know any lenders that make them, unfortunately.

  33. Chris Birk says:

    @Joe: Thanks for writing and for your service to our country. I’d suggest you contact local lenders and builders in your community about their construction financing. You can also talk with larger national lenders and builders about what they offer. The National Association of Home Builders has a directory with contact information for its members. It may be difficult to find a lender or builder willing to do a true $0 down construction loan, so a down payment may be necessary. Hope that helps.

  34. Chris Birk says:

    Thanks for writing. Yes, this is something you may be able to obtain, but you’d need to check with individual builders and lenders about their policies and what’s possible.

  35. Chris Birk says:

    @Lauren: Thanks for writing and for your service to our country. It would probably be difficult. The home would need to be considered real property and affixed to a permanent foundation. It would also likely be tough from an appraisal perspective, as finding even one good recent comparable home sale may be challenging. You can talk with a Veterans United loan officer in more detail at 888-212-1958.

  36. Chris Birk says:

    @Charissa: Thanks for writing and to your husband for his service to our country. Yes, I believe we can help. If we’re not able to prequalify borrowers, they have the opportunity to work for free with our Lighthouse Program. They work with veterans, service members and their families for free to develop a plan to repair their credit and get on the path to loan prequalification. It’s an awesome service, and they’ve helped more than 6,000 people go on to boost their credit and close on a home loan. You can talk with Veterans United loan officer in more detail at 888-212-1958.

  37. Chris Birk says:

    @Elizabeth: Thanks for writing. I’m sorry to hear about your situation. Unfortunately, what you’re finding is the reality in the marketplace — it’s tough to find VA lenders out there who will do a true $0 down construction loan. You may need to seek a construction loan from a local lender or a builder. The VA backs loans, but it’s up to individual lenders to decide what properties they’ll finance — it’s not uncommon for lenders to avoid construction financing and manufactured homes, for example. Sorry I don’t have better news.

  38. Mike says:

    I own a home presently and would like to add an addition to the house. Can a VA construction loan help me with this?

    • Chris Birk says:

      @Mike: Thanks for writing and for your service to our country. You could look at pursuing a VA Cash-Out refi depending on your equity position and using the cash to make improvements. Otherwise, it’s tough to find VA lenders making remodel/rehab loans. You can talk with a loan officer here at Veterans United about potential options at 888-212-1958.

  39. Chris Birk says:

    @Robert: Thanks for writing and for your service to our country. In terms of max loan-to-value, 100 percent financing would be based on who secured the financing for the build. Generally, if you’re obtaining the construction loan, then the base loan amount is based on the appraised value of the home. Happy to put you in touch with someone here if you’d like to talk in more detail about the process. You can also call 888-212-1958 anytime.

  40. Chris Birk says:

    @Cynthia: Thanks for writing and for your service to our country. Ultimately, it would depend on the specific property in question. But, generally, yes, these tend to be mobile structures that aren’t classified as real property — so you wouldn’t be able to use a home loan.

  41. Chris Birk says:

    @Jessica: Thanks for writing. Yes, this may be possible. You can talk with a Veterans United loan officer in more detail at 888-212-1958. We don’t make construction loans, but we do refinance a lot of them.

  42. Chris Birk says:

    @Mathew: Thanks for writing. Generally, yes, this is the approach, typically refinancing a construction loan into a permanent VA loan upon the home’s completion. Your best bet is to talk with a loan officer here in more detail. You can call 888-212-1958 anytime, or drop me a line at chris@vu.com, and I’ll put you directly in touch with someone who can help.

  43. Chris Birk says:

    @Haley: Thanks for writing. It may be possible. You’d likely need to check with builders and local lenders regarding a construction loan, as it’s tough to find a VA lender making a $0 down construction loan. You’d also want to talk with VA lenders about whether this kind of home may pose problems for permanent financing. Finding good comparable home sales for the appraisal could be challenging. The home would also need to be classified as real property, so a mobile tiny home on wheels would be a problem.

  44. Am I to assume a VA buyer would also run into major hurdles if they first – do not own the land they want to build on? I do not see a way to get a loan to buy the land – and then build a home and have it all covered by the VA.

    • Gerald,
      In situations like this the buyer may consider doing a construction loan with another type of financing such as conventional and then rolling in the entire purchase (land and build) into a VA loan after the home is complete.
      – Samantha

  45. Chris Birk says:

    @Soleil: Thanks for writing. Unfortunately, no, I don’t know of any giant list of lenders. You might check with local lenders and builders in your area.

  46. Chris Birk says:

    @Joey: Thanks for writing. It would depend on a lot of specific factors, so there isn’t really a straight Yes or No here. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  47. Chris Birk says:

    @Mike: Thanks for writing. Unfortunately, no, you wouldn’t be able to add in money for renovation with a VA purchase loan. FHA does offer a loan product like this — it’s called a 203k loan. Hope that helps.

  48. Chris Birk says:

    @Jamie: Thanks for writing. Just so I understand, are there two homes on this one parcel of land? Assuming that’s the case but want to make sure.

  49. Chris Birk says:

    @tylerloder: Thanks for writing. Generally, you could look for a loan to cover both the acquisition of the land and the construction of the modular home. You could also look for separate land and construction loans. But the first path may be a bit easier in terms of financial outlay, although you’d want to talk with lenders in more detail. In either case, you may need a down payment to secure construction financing. Like a lot of VA lenders, we don’t make construction loans, but we do refinance a fair number of them once the home is built. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  50. Chris Birk says:

    @Nicole: Thanks for writing. You would still need to obtain construction financing, which can be tough to come by as a VA loan at the outset. You may be able to utilize the land, but you would want to talk with lenders about their policies for construction financing.

  51. Chris Birk says:

    @AD: Thanks for writing and for your service to our country. It’s tough to say from this vantage point. Guidelines and approaches to these kinds of loans can vary among lenders, in terms of treating as purchase v. refi. Generally, if it’s being treated as a refinance, we would allow a documented construction deposit to reduce the funding fee when applicable. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  52. Lisa says:

    If I’m just choosing a floor plan and just going from there, do I still need a construction loan? We don’t need to pay the builders as they go, as far as I know.

    • Chris Birk says:

      @Lisa: Thanks for writing. It’s hard to say without more information. You can talk with a Veterans United loan specialist for more information at 855-544-8023.

  53. Chris Birk says:

    @Laura: Thanks for writing. We do not.

  54. Chris Birk says:

    Thanks for writing. There could be several challenges with this. This would need to be classified as real property, and you may also run into issues with the appraisal, in terms of finding at least one good recent comparable home sale. We would need to know more about your goals and what kind of home you’re hoping to build. We don’t make construction loans, but the permanent financing would still potentially face these challenges. You can talk with a Veterans United loan officer at 855-544-8023.

  55. Chris Birk says:

    @D Kidd: Thank for writing and for your service to our country. Appreciate your kind words. I don’t know of any VA lenders out there doing a single-close, $0 down payment VA construction loan. So you would likely be finding a builder or a local lender and looking for construction financing, which often comes with a down payment. Then you’d look to basically refinance that construction loan into a long-term VA loan upon its completion. And, yes, depending on the appraised value of the home, you could look to basically recoup the down payment if you wanted to. We don’t make construction loans, but we refinance a lot of them every year. We can walk you through the process at 855-544-8023.

  56. Dale says:

    I have land and have built a platform for a dome structure. There is no power or water, but have solved those problems. My question is what can the VA do for me at this point?

    • Chris Birk says:

      @Dale: Thanks for writing. You could talk with local lenders and builders about construction financing, but getting a permanent VA mortgage post-construction may be challenging given the unique nature of the property. You would want to talk with lenders about their guidelines for a home like this. It could be tough to find a least one good recent comparable home sale for the appraisal.

  57. Chris Birk says:

    @Tiffany: Thanks for writing. Generally, you will likely want to look for construction financing from a builder or a local lender. You may need a down payment, but that’s a key question when you’re talking with them. They will walk you through their construction process. At the same time, you can talk with someone here at Veterans United about how best to turn that construction loan into a permanent VA mortgage. The builder will need a VA builder ID, which isn’t difficult to obtain: http://www.benefits.va.gov/homeloans/appraiser_cv_builder_info.asp. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  58. Chris Birk says:

    @HR: Thanks for writing. Unfortunately, you would need to have an active mortgage on the property to pursue a VA refinance.

  59. Chris Birk says:

    @Chaquetta: Thanks for writing. This is possible, yes. But it can be tough to find VA lenders that will make a true $0 down construction loan. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion.

    The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 855-544-8023 anytime.

  60. Chris Birk says:

    @David: Thanks for writing and for you and your wife for your service to our country. Not separately, no. You wouldn’t be able to purchase only land with a VA loan. Hope that helps. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  61. Chris Birk says:

    @TT: Thanks for writing and for your service to our country. Generally, yes, it could be a good investment, but a lot depends on your specific situation, the property, the real estate market in your area, your current mortgage and financial profile and more. I know a loan officer here would be happy to dig into the details and give you a sense of your options and what might be possible. You can call 855-544-8023 anytime.

  62. Chris Birk says:

    @Tim: Thanks for writing and for your service to our country. Yes, you can absolutely look to do this. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  63. niurka says:

    can i use va loan to purchase 24 acres land with a manufactured house for 225000?

  64. Chris Birk says:

    @Don: Thanks for writing and for your service to our country. The challenge is I don’t know of any lenders out there making a true, no-down payment VA construction loan.

  65. Chris Birk says:

    @Ginny: Thanks for writing. It’ll likely make life easier when it comes to finding a construction loan, but I don’t know of any lenders out there making a true VA construction loan.

  66. Chris Birk says:

    @Laura: Generally, yes, you could look to wrap it all into one permanent VA loan upon the project’s completion. As the article notes, it’s tough to find lenders making true VA construction loans, so you may need to obtain a construction loan from a local lender/builder and a separate VA loan to take care of the permanent financing post-construction. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  67. Dustan Batton says:

    I understand that finding a lender for a new construction loan utilizing my VA loan guaranty can be a difficult process. However, if I do find one, am I able to buy a parcel of land AND have a new home built on that parcel all under the same loan covered by the VA loan guaranty?

    • Chris Birk says:

      @Dustan: Thanks for writing and for your service to our country. Yes, this may be possible. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  68. Chris Birk says:

    @Robert: Thanks for writing and for your service to our country. I’m happy to put you in touch with a loan officer here. Would just need to know in which state you’re buying. You can reach me at chris@vu.com.

  69. Chris Birk says:

    @Mertha: Thanks for writing. Generally, yes, this is possible. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  70. Chris Birk says:

    @Rich: Thanks for writing. Generally, yes, you could look to borrow funds for home improvement/rehab work and then seek a VA Cash-Out refinance. The max loan-to-value ratio on a VA Cash-Out refinance may change depending on how much cash you want back, and there are no guarantees when it comes to the how the property appraises. Financing the VA Funding Fee on the original purchase can also be a factor. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  71. Chris Birk says:

    Thanks for writing. Drop me a line at chris@vu.com, and I can send you a list of lenders that might be able to help.

  72. Chris Birk says:

    @Jake: Thanks for writing and for your service to our country. Generally, yes, this is an acceptable use of the VA loan program. As the article notes, though, it can be challenging to find a true $0 down VA loan. Like most, this isn’t something we offer. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion.

    The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 855-544-8023 anytime.

  73. Chris Birk says:

    @Shelby: Thanks for writing. Yes, that’s typically what you will need to get going. As the article notes, it’s difficult to find VA lenders out there willing to actually front the costs of new construction. Like most, this isn’t something we offer. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion.

    The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 855-544-8023 anytime.

  74. Chris Birk says:

    @Michael: Thanks for writing and for your service to our country. Unfortunately, it’s going to be tough to find a lender willing to make a true VA construction loan. You could still look to purchase a fixer-upper with a traditional VA purchase loan, but a lot would depend on what kind of shape it’s in and what needs to be done before the loan could close. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  75. Chris Birk says:

    @Carrie: Thanks for writing. Generally, you’d likely be looking for a builder or local lender in Arizona to finance the construction, and then you could look to turn that construction loan into a permanent VA mortgage. We can walk you through the steps. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  76. Chris Birk says:

    @Antonio: Thanks for writing and for your service to our country. You’d want to ask individual lenders, but I imagine you’ll need a down payment, hard to say just how much. Your current loan would have an impact on how much VA loan entitlement you have remaining, which can lead to you needing a down payment on the longterm financing. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  77. Chris Birk says:

    @Theresa: Thanks for writing. Generally, yes, you may need to have two closings with two sets of closing costs. You’d want to talk with individual lenders about how it would work in practice with them. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  78. Chris Birk says:

    @Carol: Thanks for writing. We don’t make construction loans, but we could take a look at the permanent financing piece here. Would need to take a closer look at your specific situation. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  79. Chris Birk says:

    @Ryan: Thanks for writing. Generally, yes, but it can be difficult to find VA lenders out there willing to actually front the costs of new construction. Like most, this isn’t something we offer. You may need to find a builder or local lending institution to provide a short-term construction loan, then you would look to refinance that into a long-term VA loan upon the home’s completion. The latter piece — basically turning a construction loan into a permanent VA loan once the home is built — is something we do. Happy to put you in touch with a loan specialist here if you’d like to talk more in detail. You can also call 855-544-8023 anytime.

  80. Chris Birk says:

    @Mark: Thanks for writing. You can talk with a Veterans United loan officer about preapproval and turning that construction loan into a permanent VA mortgage at 855-544-8023.

  81. YV says:

    Hello! Can we use a VA loan to buy a house that is currently under construction?

  82. Chris Birk says:

    @Steve: Thanks for writing and for your service to our country. Getting the VA builder ID isn’t difficult, and here’s more info on that: https://www.benefits.va.gov/HOMELOANS/appraiser_cv_builder_info.asp. In terms of getting a VA loan, we would need to take a closer look at your overall credit, debt and income situation. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  83. Chris Birk says:

    @Scott: Thanks for writing. You can talk with a Veterans United loan specialist in more detail at 855-544-8023.

  84. Sandra Longoria says:

    I have a lot I would like to build on, however my credit is poor due to medical bills.What’s the best route here.

    • Chris Birk says:

      @Sandra: Thanks for writing and for your service to our country. Right now VA lenders are generally looking for a score of at least 620. If we’re not able to prequalify borrowers, they have the opportunity to work for free with our Lighthouse Program. They work with veterans, service members and their families for free to develop a plan to strengthen their credit and finances and get on the path to loan prequalification. It’s an awesome service, and they’ve helped more than 17,000 people go on to boost their credit and close on a home loan. You can talk with Veterans United loan officer in more detail at 855-544-8023.

  85. Skyfyr says:

    Dear Mr Birk ~ The answers you have responded with to all the questions people have written in have been so very helpful. Thank you so much. Your time and patience is greatly appreciated.