VA Construction Loan. Build with $0 Down
A VA construction-to-permanent loan is a one-time close for eligible veterans, active-duty members, and certain surviving spouses. With full entitlement it can be $0 down and has no monthly PMI. A VA-approved lender confirms how that lender structures the build.
See if you qualify with a lender
VA Construction-to-Permanent Loan at a Glance
Purchase-loan terms from the VA program: $0 down with full entitlement, no monthly PMI, and a one-time funding fee of 1.25%–3.3%. First use at $0 down is typically 2.3%. Veterans with VA disability compensation and certain surviving spouses are exempt.
Down payment
$0 with full entitlement
Monthly mortgage insurance
None
Funding fee
1.25%–3.3% one-time
Occupancy
Primary residence
Property standard
VA appraisal and MPRs
Eligibility document
Certificate of Eligibility
Connect with a VA Construction Lender
How the VA Construction-to-Permanent Loan Works
One closing before the build, then a permanent VA mortgage when the home is finished. Builder requirements and how construction funds are released are confirmed by a VA-approved lender.
Confirm VA eligibility
Borrower rules match a VA purchase loan. You need a qualifying service history, a discharge other than dishonorable, and a Certificate of Eligibility. A VA-approved lender can usually request the COE as part of the application.
One closing before construction
The product is a construction-to-permanent loan, also called a one-time close: construction financing and the permanent mortgage are one closing, before the build starts. A VA-approved lender confirms builder requirements and how that lender releases construction funds.
Permanent VA mortgage
When the home is finished, you occupy it as your primary residence. It must pass a VA appraisal and Minimum Property Requirements. With full entitlement the permanent loan can be $0 down and has no monthly PMI. A one-time funding fee applies unless you are exempt.
VA Construction-to-Permanent Loan Requirements
Borrower and property rules match a VA purchase loan. The construction structure itself is confirmed by the lender.
1. Borrower eligibility
The same service groups as the VA loan program. Basic training and AIT alone do not count toward the wartime or peacetime day counts.
- Wartime service of 90+ consecutive days
- Peacetime service of 181+ consecutive days
- Active duty after 90 days
- National Guard or Reserves with 6+ years
- Certain surviving spouses
- Discharge other than dishonorable
- Certificate of Eligibility required
2. Property requirements
- Primary residence — not a second home or investment property
- Must pass a VA appraisal
- Must meet Minimum Property Requirements (safety, soundness, and sanitation)
3. Construction structure
A VA-approved lender confirms builder requirements and how construction funds are released. Confirm that structure before you sign a builder contract.
- Whether that lender offers a VA one-time close
- Builder requirements for your project
- How construction funds are released during the build
- Your funding fee, including any exemption
VA, FHA, and USDA Construction
VA fits eligible veterans who want $0 down without a USDA location or income cap.
VA construction
$0 down, no monthly PMI
For eligible veterans, active-duty members, and certain surviving spouses. No USDA location or income cap.
Key Details
- $0 down with full entitlement
- No monthly PMI
- One-time funding fee of 1.25%–3.3%
FHA construction
3.5% down
A construction-to-permanent loan with 3.5% down. No USDA location or income cap.
Key Details
- 3.5% down
- Construction-to-permanent, same idea as VA
- No USDA location or income requirement
USDA construction
$0 down in eligible areas
A construction-to-permanent loan with $0 down where the property and household income both qualify.
Key Details
- $0 down
- Property must be in a USDA-eligible area
- Household income limits apply
More VA and Construction Resources
VA loan program
Purchase terms that carry over
Service requirements, the Certificate of Eligibility, the funding fee, and the appraisal rules behind this construction loan.
Key Details
- Who qualifies, including surviving spouses
- Funding fee range and exemptions
- Primary residence and Minimum Property Requirements
All construction loans
USDA, FHA, VA, and conventional
Side-by-side construction-to-permanent options if VA eligibility is still an open question.
Key Details
- VA, USDA, FHA, and conventional compared
- What a one-time close means
- Which program fits location and down payment
Build with $0 Down — If You Qualify
Fewer lenders offer VA construction than VA purchase. The form above connects you with a VA-approved lender who can confirm your Certificate of Eligibility, the one-time close, and how that lender structures the build.
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