Build Your Home.
$0 Down.
One Close.
VA construction-to-permanent financing — you design and build the home you want, with your VA benefit doing the heavy lifting. One closing, no second appraisal, no PMI. Ever.
The Product
What Is a Construction Loan?
A construction loan is a short-term loan used to finance the building of a new home or major renovation. Once construction is complete, the loan is either paid off or converted into a permanent mortgage, depending on the loan type you choose. At The Veteran Alliance, we offer:
One-Time-Close Loans
A single loan that covers both construction and your permanent mortgage. You'll close once, lock your rate early, and reduce fees and paperwork.
Two-Time-Close Loans
Separate loans for construction and your long-term mortgage. This gives you added flexibility, especially if you're unsure of your permanent financing needs upfront.
The Build Process
Dirt to Drywall.
From eligibility check to keys — one banker, one closing, zero surprises.
We pull your Certificate of Eligibility and verify VA construction loan eligibility — some lenders can't do this product at all.
The VA dropped its Builder ID / formal-approval requirement in March 2025 — any properly licensed builder qualifies. We still vet your builder's insurance, financial capacity, and experience, and confirm they'll provide the required 1-year or 10-year warranty.
The VA appraises your home based on the construction plans, not an existing structure. We manage this process completely.
Construction-to-permanent financing in a single closing. No second appraisal, no second loan, no second set of closing costs when construction ends.
Funds are released in draws as construction milestones are reached. Your banker coordinates with your builder throughout.
When construction is complete, the loan automatically converts to a standard VA mortgage. Same rate. Same terms. No paperwork.
Eligibility
Do You Qualify for a Construction Loan?
We'll help you determine which option fits your build and budget best, whether you need a construction-to-permanent loan, new construction loan, or a two-time-close alternative. You'll typically need:
- A licensed builder and signed contract
- A solid credit score and manageable debt-to-income ratio
- Verified income, assets, and down payment funds
- A valid VA Certificate of Eligibility (COE)
- Complete architectural plans and specs
Not sure what you need? No problem — we'll guide you from plans to keys.
The Difference
Why Build with The Veteran Alliance?
Rate Protection
Lock in your permanent rate before or during the build process.
Streamlined Process
With one-time-close options, finance everything from dirt to drywall under one approval.
Flexible Terms
Choose from fixed or adjustable-rate options and a range of loan terms.
Construction Loan Expertise
Our construction specialists understand the unique ins and outs of building loans and timelines.
Builder Relationships
We work directly with trusted builders and contractors to keep everything on track.
Build the Home You Designed.
At The Veteran Alliance, we believe the building process should be exciting, not overwhelming. We'll bring clarity, transparency, and a whole lot of peace of mind to your project.
Let's build something incredible together.
Construction Payment Calculator
Estimate Your Build Payment.
Run the numbers on your build. Adjust the purchase price to match your construction budget.
VA Loan Payment
Loan Details
VA loans allow $0 down
VA Loan Status
Monthly Payment
per month (PITI)
VA Funding Fee
Ready to get started?
Talk to a VA Loan SpecialistAll calculations are estimates and for informational purposes only. Please consult a financial advisor for personalized advice.
Construction Loan FAQs:
Straight answers to the most common VA construction loan questions.
A VA construction loan finances the building of a new home from the ground up using your VA benefit. It covers the cost of land (if not already owned), construction, and the permanent mortgage. With a One-Time-Close (OTC) loan, all three are rolled into a single loan with one closing, saving you time and money.
One-Time-Close (OTC) combines your construction financing and permanent mortgage into a single loan with one closing, one set of fees, and one rate lock. Two-Time-Close uses separate loans for construction and permanent financing, giving you more flexibility to shop rates later but requiring two closings and two sets of closing costs.
In most cases, no. VA loans allow 100% financing, which means zero down payment. However, some lenders may require a small down payment for construction loans depending on the complexity of the project. We'll walk you through your specific situation during pre-qualification.
In most cases, yes. As of March 31, 2025, the VA eliminated the requirement for builders to carry a separate VA Builder ID or go through a formal VA approval process for standard purchase and construction loans — any builder who meets your state and local licensing requirements can build your home. Your builder still needs to carry the appropriate liability and workers' compensation insurance and provide either a one-year workmanship warranty or an accepted 10-year insured protection plan, which the VA still requires on new construction. We vet every builder's licensing, insurance, financial capacity, and experience before we move forward. (The old VA Builder ID requirement still applies to Specially Adapted Housing grants and Native American Direct Loans — a narrow exception that doesn't affect most veterans building with this loan.)
During construction, your builder requests funds at predetermined milestones (foundation pour, framing complete, mechanical rough-in, etc.). Before each draw is released, an inspector verifies the work is completed to spec. This protects you from paying for work that hasn't been done.
The loan approval process typically takes 45-60 days. Construction timelines vary based on the project scope, but most single-family homes take 6-12 months to build. Your permanent mortgage payments don't start until construction is complete and the loan converts.
Cost overruns are addressed through a change order process. Minor overruns may be absorbed within the contingency reserve (typically 5-10% built into the budget). Significant overruns require a formal change order, re-appraisal, and potentially additional financing. We build in safeguards to minimize surprises.
Yes. If you already own the land free and clear, its appraised value can count as your equity in the project. This can reduce or eliminate any potential down payment requirement and lower your VA funding fee. Land equity is one of the strongest positions you can be in for a construction loan.