Can I do any of the construction work myself?

No. The builder must be solely responsible for the project from start to finish. Borrowers may not act as their own contractor or complete construction work themselves.

Is there a list of VA-approved builders?

Yes. There is an existing list of approved builders, that I will be glad to share with you once you are pre-approved for the loan. Additional builders may apply for VA approval if they meet licensing, insurance, and experience requirements. Please get with me for the VA builder request packet.

Are building permits and soft costs included in the loan?

Yes. The VA construction loan must include all construction-related costs, including permits, soft costs, site work, and required improvements.

Can I use land I’m purchasing from the builder or a third party?

Yes. You may purchase land from the builder or a third party as part of the VA construction loan.

Do I have to own the land for 6–12 months to use its equity?

No. VA loans do not have a land seasoning requirement. If the land was purchased within the last 12 months, value is based on the original purchase price. If owned longer than 12 months, value is based on appraised site value.

Who orders the appraisal?

The lender orders the appraisal through a third-party Appraisal Management Company or directly through the VA, when applicable.

Is there a limit on how much acreage I can purchase?

Preferably under 40 acres, though exceptions may be possible. The appraisal must support the value with comparable properties, and the home value should exceed the land value.

If land is gifted to me, can I start building immediately?

Yes. There is no seasoning requirement for gifted land, provided title is properly transferred.

What does the 3-day “cooling-off” period mean?

After closing, land and mortgage payoffs are funded immediately. All other construction funds are held for three business days before being disbursed.

Will adding soft costs affect the appraised value?

Possibly. The maximum loan amount is based on the lower of the appraised value or total project cost.

Can multiple steps in the process happen at the same time?

No. The VA One-Time Close process is linear. Each step must be completed before moving to the next.

Can I start construction before closing?

No. Construction may not begin before closing. Lot clearing by the owner is permitted, but no contractors may start work prior to closing due to title and insurance requirements.

How do interest rates work on a VA construction loan?

Rates fluctuate with the market. During construction, interest payments are included in the closing costs. The permanent mortgage rate is locked once the appraisal is received, with a one-time float-down option after the final draw if rates improve.

Who requests construction draws?

The builder requests draws through an online app. Funds are released only after a third-party inspection, updated title search, and borrower approval. Draws typically take 3–5 business days.

Can I stay in my current home while my new home is being built?

Yes, but you must qualify for both payments. In some VA cases, the departing residence may be excluded from qualifying, subject to entitlement and case-by-case approval.

What loan programs are available for a One-Time Close construction loan?

VA, Conventional, and FHA loan programs are available. Jumbo options are expected to be available in the future.

How much are closing costs on a VA construction loan?

Closing costs are finalized once land and construction prices are confirmed. They typically include construction interest holdback, contingency reserves, construction management fees, and standard loan costs. Total costs commonly range from 6%–13% of the total project, depending on loan type and structure.