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How to Find the Best VA Construction Loan For You

If you’ve ever dreamt of building the home of your dreams, there’s good news: VA home loans can be used for new construction and renovations. Those who have struggled to find a home that appeals to them will find new and exciting opportunities to make their dreams of homeownership come true. The process for applying for such a loan is similar to any other type of VA home loan. Shopping around for VA construction loans can help you make the best choice for your home ownership goals.

VA Construction Loans

If you’re hoping to get a VA construction loan, you’ll want to start by getting preapproved for a home loan through a VA home loan specialist. Because it is often hard to know how much a construction project might cost, it’s a good idea to find out the maximum amount you can borrow. Preapproval requires Veterans to submit their credit information, tax information and proof of income and employment.

Next, you’ll need to find a builder and begin working on a floor plan. Not all builders are licensed, insured and registered with the VA, so you’ll want to do your research before committing to a particular builder. In order to qualify for a VA home construction loan, you’ll need to provide all of your plans for the renovations or building you and your general contractor have created.

With blueprints in hand, you can apply for VA home construction loan. This process can take up to 60 days, so patience is a must. An appraisal will be ordered for both the property and the plans for the home. The good news? VA construction loans can include the purchase price of the property you plan to build upon, which means that you don’t need to own land in order to begin this process. Finally, plans to disburse funding for the project will be created during this underwriting period.

VA Construction Loan Lenders

Contrary to popular belief, VA home loans are not offered by the Department of Veterans Affairs. The VA does not make loans directly. Though the government guarantees these loans, Veterans will want to search for an institutional lender when searching for a VA construction loan. Both national and local lenders are good options. Your bank, credit union or other financial institution may indeed offer VA construction loans.

In your search, ask about a lender’s experience with VA construction loans. Their history can help inform your decision about whether or not to partner with them. It’s also worth asking about any lender-specific down payment requirements as not every lender will offer zero down options. It’s a good idea to know what you’re getting into before deciding to go with one lender over another. Also ask about closing costs and other expenses that might arise so that you’re not caught off guard by surprise costs.

Of course, we believe SoCal VA Homes is the ideal lender for most military servicemen and women who are hoping to buy a home. We specialize in finding the right property at the right price for each Veteran with whom we work. Whether you’re just beginning your research on VA construction loan lenders or are a seasoned expert in all things homebuying, you’ll appreciate our offerings. SoCal VA offers three different programs for Veterans, one of which allows for 100 percent financing of new construction. With zero down and zero closing costs often available, there’s no reason not to explore your options!

Curious about whether or not you’d qualify for a VA construction loan? Our website’s FAQ section handles this question and many more also recommend using our VA mortgage loan calculator to determine how much house you can afford. These tools are just a few of the many resources available to you thanks to SoCal VA! Should you decide to move forward with your decision to get a VA construction loan, our team of experts is ready to take your call and get you one step closer to your dream home.


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