VA Construction Loans
Build your dream home with zero down payment — exclusively for eligible veterans, active-duty service members, and surviving spouses.
Program Overview
VA construction loans combine VA-guaranteed construction financing with a permanent VA mortgage. Eligible veterans and active-duty service members can build a new home with zero down payment, no mortgage insurance, and competitive VA rates. The one-time close structure means one application, one closing, and one set of fees.
Who Is This Loan For?
- ✓ Veterans building a new custom home
- ✓ Active-duty service members
- ✓ National Guard and Reserve members
- ✓ Surviving spouses of veterans
Key Benefits
Zero Down Payment
Build your home with 100% financing — no down payment required.
No Mortgage Insurance
VA loans do not require monthly mortgage insurance premiums.
Competitive VA Rates
VA loans often offer among the most competitive mortgage rates available.
One-Time Close
Single closing for construction and permanent financing.
Qualification at a Glance
General Requirements
- Certificate of Eligibility (COE)
- Licensed VA-approved builder
- Approved plans, specs, and budget
- Credit requirements per lender (typically 620+)
- VA appraisal based on plans
- VA funding fee applies (can be waived for disabled veterans)
Advantages
- ✓ Zero down payment
- ✓ No monthly mortgage insurance
- ✓ Competitive VA rates
- ✓ One-time close option
- ✓ Funding fee can be waived or financed
Tradeoffs to Consider
- ↔ Fewer lenders offer VA construction
- ↔ VA-approved builder required
- ↔ Primary residence only
- ↔ VA funding fee applies
- ↔ Construction timeline requirements
Common Scenarios
Veteran Building in Rural Area
A retired Army veteran on 5 acres builds a custom 2,500 sq ft home with zero down, no PMI, and a competitive 30-year fixed rate.
Documents Typically Needed
- Certificate of Eligibility (COE)
- DD-214 or military service records
- Builder qualifications and VA approval
- Construction plans and budget
- Standard income/asset documentation
Frequently Asked Questions
Yes. The builder must be registered with VA and meet their requirements. Your advisor can help verify builder eligibility.
Broker Disclosure: Scout Financial Group Inc DBA Airus Lending is a licensed mortgage broker (NMLS #2187418) and does not make loans or credit decisions. Airus Lending works with multiple wholesale lenders to help borrowers compare available loan options. Final approval depends on the lender, automated underwriting findings, documentation, state requirements, and overall borrower profile. Not all applicants will qualify.