Is it possible to get a VA construction loan?


VA construction loans are financed by VA lenders on a regular basis. Usually the builder is required to carry the cost of the new construction until the home is completed. If you own the land of the home, the builder may not be willing to carry construction costs and you may need a bridge loan until a permanent VA mortgage is obtained.

VA New Construction Loans vs. Traditional Mortgages

Construction loan terms vary widely. A pure construction home loan will be short-term (6 months to 2 years) and will be replaced by another long-term mortgage upon completion. New home construction loans sometimes have reduced application and loan processing fees.

VA loans allow for no down payment and have a high LTV. Therefore, some banks wouldn't work directly with veterans. A separate interim VA construction mortgage loan will be available for property built by VA approved home builders and through real estate agents specializing in VA construction loans. VA new construction home loans are easier to locate.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: