What Builders Need to Know About the VA Construction Loan

A practical guide for builders who want to better understand the VA construction loan, how it works, and how Marshall Sparkman helps veteran buyers build with confidence.

The builder acceptance package is super simple. Once the package is complete, please send back to our team and we will forward it to our construction team who will have it approved within 48 hrs. We have built out the smoothest construction process in the industry. Once you close the first deal with us, you will love how smoothly it flows.

VA Construction Loan Description of materials

This form is needed for all VA loans once we begin the process

Quick Video for builders

If you are a builder working with veteran buyers, this page was built for you. I specialize in VA loans and construction financing, and my goal is to help builders better understand how the VA One-Time Close construction loan works, what is typically needed from the builder, and how this program can become a powerful way to serve eligible veterans and military families.

VA One-Time Close Construction Loan Highlights for Builders

  • $0 down available for eligible borrowers

  • Minimum 620 credit score

  • Loan amounts from $250,000 to $2,000,000

  • Land, construction, and permanent mortgage all wrapped into one loan

  • One closing

  • No interest payments during construction for the borrower

  • Closing costs and financed loan fees may be rolled into the loan as long as the final value supports it

  • No reserve requirements

  • 1–4 unit properties allowed

  • Must be owner-occupied

  • 30-year fixed term

  • Owner/builder DIY is not allowed

  • Available for eligible veterans and military borrowers

  • Builder must be approved

  • Plans, specs, contract, permits, and builder documentation are required

  • Designed for new construction only

  • Permanent financing is built in from the beginning, rather than using separate construction and end loans

  • Helps eligible veterans build on their own land or finance land in the transaction, depending on the scenario

  • Can be a strong solution for buyers who want to build a custom home instead of buying resale

  • The project must appraise and meet lender/VA property and program guidelines

Builder Approval Requirements for VA Construction Loan

  • Builder Acceptance Package required

  • 3+ years in construction-related business

  • 3 ground-up builds in the last 12 months

  • 5 ground-up builds in the last 24 months

  • Valid licensing/registration required

  • Certificate of Good Standing may be required

  • General liability insurance required

  • No unresolved liens or judgments

  • No bankruptcy in the last 12 months

  • No foreclosure in the last 24 months

  • Additional financial documents may be requested

  • Final approval issued through a Builder Acceptance Letter

Why Builders Trust Marshall Sparkman

My father was a builder, and my grandfather was a builder, so I have been around construction my entire life. After serving in the military, I entered mortgage lending, and since 2008 I have specialized in VA loans and construction financing.

Over the years, I have helped many families finance custom home builds, and I understand how important it is for builders to have clarity and confidence on the financing side. I am passionate about helping veterans use one of the greatest benefits available to them while helping builders better understand how to navigate the process from the front end.

I am here to serve, and I would be honored to help you and your team better understand whether this program could be a fit for your buyers.

  • Serving builders and veteran buyers since 2008

  • Specializing in VA and construction financing

  • Loans available in any state

  • Builder-friendly guidance from the front end

Why the VA Construction Loan Matters for Builders

Many veteran buyers want to build a home, but they often do not understand the financing options available to them. In many cases, builders do not want to spend valuable time trying to explain loan structures, approvals, or lender requirements.

That is where the right lending partner can make a big difference.

When a qualified borrower, an approved builder, and an eligible project come together the right way, the VA One-Time Close construction loan can be an incredible opportunity for the veteran and a strong business opportunity for the builder.

  • Helps eligible veterans finance land, construction, and permanent financing in one loan structure

  • Gives builders a financing partner who can educate the buyer clearly

  • Reduces confusion around builder documents and expectations

  • Helps sales teams feel more confident when speaking with veteran buyers

  • Creates an additional path for qualified buyers who want to build

  • Supports military and veteran families with a meaningful loan benefit

What Is the VA One-Time Close Construction Loan?

The VA One-Time Close construction loan is designed to help eligible veteran and military borrowers finance the construction of a home and move into permanent financing through one loan structure rather than separate construction and end loans.

That does not mean every project qualifies automatically. The borrower, builder, property, plans, and documentation all have to meet lender and program requirements.

But when the process is handled correctly on the front end, this can be an outstanding loan product for veterans and for the builders who serve them.

In simple terms, this loan may allow an eligible buyer to:

  • purchase land or use owned land, depending on the scenario

  • finance construction

  • move into permanent financing after completion

  • avoid the complexity of separate construction and end financing