How VA one-time-close construction works
The construction and permanent financing are established together before the build begins. Funds are then released through the construction process according to the program's draw and inspection requirements, with the loan transitioning into the permanent VA mortgage after completion.
Why it is different from a standard VA purchase
The borrower is not simply buying a completed home. The builder, land, plans, budget, appraisal, draw process and completed property all become part of the approval.
What needs to be reviewed early
- VA eligibility and entitlement.
- Builder participation and project requirements.
- Lot ownership or lot acquisition.
- Plans, specifications and construction contract.
- Construction budget and completed appraised value.
- Borrower income, credit, assets and qualifying requirements.
Can land be included?
Depending on the specific structure and eligibility, land ownership or an eligible lot purchase may be part of the construction analysis. Existing liens, equity and project value need to be reviewed.
Builder participation matters
Not every builder or project is automatically eligible for VA construction financing. Confirming the builder and loan structure before committing to a lot, contract or build schedule can prevent problems later.