One Loan · One Closing · $0 Down

Build new construction with your VA benefit.

A VA One-Time Close construction loan wraps the land, the build, and your permanent mortgage into a single loan and a single closing — no separate construction loan, no second closing once the home is finished.

Key Facts

Understanding the One-Time Close construction loan.

Six things worth knowing up front — no fine print you have to dig for.

1

One Loan, One Closing

The land (purchase or payoff), the construction costs, and the permanent mortgage are all combined into a single loan, closed once — before construction even begins. No separate construction loan, no second closing when the home is finished.

2

$0 Down for Eligible Veterans

The same VA benefit that makes purchase loans possible with no down payment applies here — qualified veterans can finance 100% of the land and construction costs.

3

Your Rate Locks at Closing

Because everything closes upfront, your rate is locked before construction starts — protecting you from rate changes during the build, which is a real risk with a separate construction loan you'd later refinance.

4

Builder Requirements Have Gotten Simpler

The VA no longer requires builders to register for a VA Builder ID. Your builder still needs to be licensed, insured, and experienced — I verify that as part of the process — but this removed a real bottleneck for veterans working with a builder who hasn't done a VA project before.

5

Funds Are Released in Draws

Construction funds aren't handed over all at once — they're released in stages as work is completed and inspected, the same protective structure used on VA and FHA renovation loans.

6

Recently Standardized Nationwide

The VA formalized a standardized single-close construction loan process nationwide in August 2026 — clarifying builder standards, draw schedules, and inspection requirements. This is a genuinely good time to explore this option; it's more consistent and accessible than it's been in years.

Go Deeper

A couple more things worth knowing.

One-Time Close vs. Two-Time CloseThere are two ways to finance new construction with a VA loan

One-Time Close combines construction and permanent financing into a single closing — you apply once, close once, and the loan automatically converts to a permanent VA mortgage once the home is complete and passes final inspection. This is the more common path, and generally means fewer fees and less rate risk.

Two-Time Close separates the transactions — a short-term construction loan first, then a second closing into permanent VA financing once building is done. This means two sets of closing costs and two underwriting processes, and your rate isn't locked until the second closing.

What Happens During ConstructionPayments, timelines, and what to expect

You generally don't make mortgage payments during the build — your first payment is typically due once the home is complete. Your repayment schedule adjusts to reflect the construction period, so if building takes six months on a 30-year loan, you'd repay over the remaining 29 years and six months, not a fresh 30-year clock.

Progress inspections happen before each draw is released to your builder, which protects you from paying for work that wasn't actually completed to plan.

Try It Yourself

Construction Loan Estimate

Enter your land and construction costs. This shows your estimated total loan, funding fee, and future monthly payment once the home is complete.

Estimated Results

Total Project Cost
Down Payment
Base Loan Amount
Funding Fee
Total Financed Amount
Est. Payment After Completion (P&I)

Estimate only. You generally won't make this payment during construction — it begins once the home is complete. Excludes taxes, insurance, and HOA. I'll confirm your exact numbers, builder requirements, and timeline together.

Myths vs. Facts

VA Construction Loan Myths vs. Facts

Common misconceptions about building new with a VA loan, corrected one at a time.

Myth: A VA construction loan always means two separate closings
Myth

Building a home with a VA loan means a construction loan first, then a completely separate closing to refinance into a permanent mortgage.

Truth

With a One-Time Close construction loan, it's a single closing — the loan automatically converts to a permanent VA mortgage once the home is complete. Two-Time Close still exists as an alternative, but it's the less common path and generally costs more.

Myth: Any contractor can build a VA construction home
Myth

Since the VA dropped its builder registration requirement, any contractor can now build a VA-financed new construction home.

Truth

The formal VA Builder ID requirement was eliminated, which removed a real bottleneck — but your builder still has to be licensed, insured, and experienced enough to meet lender standards. I verify this as part of the process, it's just less paperwork than it used to be.

Common Questions

Frequently asked, honestly answered.

Do I make mortgage payments while the home is being built?
Generally no — your first payment is typically due once the home is complete. This is a genuine advantage over some construction financing structures where you're carrying payments during the build.
What if construction takes longer than planned?
Your repayment schedule adjusts to reflect the actual construction period, rather than resetting your loan term from scratch once building wraps up.
Can I use land I already own?
Yes — if you already own the lot, that equity can typically be used as part of your down payment or included in the transaction, rather than needing to purchase land separately.
What's the funding fee on a construction loan?
The same tiers as a standard VA purchase loan, and it can be waived entirely if you receive VA disability compensation. I'll confirm your exact fee based on your down payment and usage history.
Do I need to find a special "VA-approved" builder?
Not in the way you may have heard — the formal VA Builder ID requirement was eliminated. Your builder does need to meet licensing, insurance, and experience standards, which I help verify as part of the loan process.
Get In Touch

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No pressure, no jargon — just a real conversation about your project.

(903) 636-7651
viola@violahomeloans.com

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