build custom home veteran home loan

VA Loans

Using a Veteran Home Loan to Build a Custom Home

Are you wondering if you can use a veteran home loan to build a custom home? Maybe you’ve been home shopping for a while and have been disappointed by the already-built homes in your area. Or perhaps you’ve just returned from deployment and are looking to settle down in a home that suits your lifestyle and needs. Well, good news! You’re in luck! You can use your VA financing for more than just an existing home; you can also use it to build your dream home! Here’s what you need to know.


VA Construction Loans for Custom Homes

If you’re looking to build a custom home, you’ll most likely need to apply for a VA construction loan. VA construction loans allow eligible veterans and active-duty service members to finance the construction of new homes. 

These loans are unique because they combine two types of financing: a short-term construction loan to cover the costs of building the home and a long-term mortgage loan that will be used to pay off the construction loan once the home is completed. 

With a VA construction loan, borrowers can usually borrow up to 100% of the total cost of the home, including the land and construction costs, which means that no down payment is required.


Buying Land with a VA Construction Loan

It’s important to note that the VA has restrictions on using VA loans to buy land alone. If you’re planning to buy land with a VA loan, you must build a home on it. Additionally, that home must be used as your primary residence.


Benefits of Building a Custom Home with a VA Loan

Building a custom home can offer a range of benefits for veterans and their family members. Custom homes allow personalization, accessibility for veterans with disabilities, energy-efficient upgrades, and other perks. Since interest rates are competitive and there’s no down payment required, VA loans are an affordable way to finance a custom home.


Steps for Building a Custom Home with a VA Loan

The process for building a custom home with a veteran home loan tends to be a little more involved than buying an existing home. But trust us, it’s worth it! In the end, you’ll have a beautiful new home that’s fully personalized according to your preferences and needs. Here are the steps involved:

  1. Find a lender that offers VA construction loans.
  2. Find a custom home builder.
  3. Wait for the VA to submit an appraisal based on the building plans.
  4. The builder constructs the home according to the details you two have worked out.
  5. The VA conducts a final inspection to ensure that the property meets its requirements and is safe, sanitary, and sound.


Apply for a Veteran Home Loan

Get started with the application process today or call our office to speak to one of our mortgage experts directly.