February 3, 2026
10 minutes
For many eligible homebuyers, including veterans and active-duty service members, the idea of building a custom home may seem out of reach. Traditional financing? Often includes high fees, confusing terms, and long wait times.
But what if your VA loan benefits could help you do more than just purchase an existing property?
That’s where VA construction loans come in - and why real estate tools like reAlpha and VA-expert lenders at reAlpha Mortgage are working to simplify the process with transparent, supportive services.
Key Takeaways
- Yes, you may be able to build a home using a VA loan benefit.
- VA construction loans offer eligible borrowers zero-down financing for new construction.
- The builder and lender must be approved by the U.S. Department of Veterans Affairs (VA).
- reAlpha Mortgage assists qualified borrowers in navigating the VA construction loan process.
- reAlpha provides commission-free real estate tools to help you search for land and properties, potentially reducing upfront expenses.
Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
What is a VA Construction Loan?
A VA construction loan lets eligible veterans, active-duty members, and some surviving spouses finance the building of a new primary home. Unlike a standard VA loan for buying an existing house, this option can cover land and construction costs. Some lenders even offer it as a one-time close loan, combining everything into a single transaction.
VA Construction Loan vs. VA Purchase Loan
| Feature | VA Construction Loan | VA Purchase Loan |
|---|---|---|
| Purpose | Build a new home | Buy an existing home |
| Down Payment | $0 (if eligible) | $0 (if eligible) |
| Closing | Often one-time close | Single close |
| Lender Flexibility | Fewer VA-approved lenders | More widely available |
Can You Build a House with a VA Loan?
This is a common misconception. YES, under certain conditions, you can use your VA loan benefit to finance new home construction.
According to the VA Lender's Handbook (Chapter 7), VA-guaranteed loans may be used for construction purposes, provided the lender offers construction financing and the builder is VA-registered.
While some lenders may not offer VA construction loans, they are available through VA-approved partners. The key is working with experienced, qualified professionals.
Pro Tip: Need help? Speak with a VA construction loan specialist at reAlpha Mortgage. Their team supports eligible buyers through every step - from eligibility to closing - helping you maximize your VA benefits with $0 down.
Step-by-Step: How to Secure a VA Construction Loan?
Step 1: Get Your Certificate of Eligibility (COE)
This document verifies your eligibility for VA loan benefits. You can request it via the VA eBenefits portal, or a participating VA lender can obtain it for you.
Step 2: Choose a VA-Approved Builder
Only builders registered with the VA may be used. Confirm your builder's approval status and ensure they understand VA-specific documentation.
Step 3: Work with a VA Construction Loan Lender
Not all lenders offer VA construction financing. reAlpha Mortgage connects borrowers with VA-approved lenders that specialize in this unique product.
Step 4: Understand Loan Terms & Phases
Funds are typically distributed in construction "draws" as the build progresses. Lenders will conduct inspections at each phase before releasing additional funds.
Step 5: Close & Convert to Permanent Loan
Most VA construction loans are structured as a one-time close, converting automatically into a traditional VA mortgage once the home is completed.
Pros and Cons of a VA Construction Loan
Pros:
- $0 Down Payment (if eligible)
- One-Time Close Option (reduces fees and simplifies process)
- Competitive Interest Rates
- No Private Mortgage Insurance (PMI)
- Flexible Credit Guidelines (may vary by lender)
Cons:
- A limited number of participating VA-approved builders and lenders
- Longer construction timelines compared to existing home purchases
- Additional documentation and inspection requirements
Veterans Can Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together.
Common Mistakes First-Time Buyers Make (and How to Avoid Them)
Mistake #1: Choosing a Non-VA-Approved BuilderSolution: Confirm your builder’s VA registration. Ask your lender for a list of verified options.
Mistake #2: Not Budgeting for Land, Permits & Site PrepSolution: VA loans may not cover all pre-construction costs. Reserve funds for surveys, permits, and land improvements.
Mistake #3: Forgetting the Post-Construction ConversionSolution: Understand how and when your construction loan transitions into a permanent VA-backed mortgage.
Why Choose reAlpha + reAlpha Mortgage?
reAlpha: Real Estate Platform with Buyer Rebate Offers
Search for land or new listings and save at closing with our buyer rebate model-earning back a substantial portion of your agent’s commission.
reAlpha Mortgage: VA Mortgage Specialists
Our VA loan experts guide eligible borrowers through every step of the construction loan journey - from builder selection to funding and final mortgage conversion.
“We’re not just mortgage professionals - we’re veterans too. We understand how to navigate the VA process and help you build your future with confidence.”
Ready to Build with VA Benefits and Keep Thousands in Your Pocket?
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
The smartest VA buyers are saving big. Are you ready to join them?
Start building smarter with reAlpha Mortgage →
FAQs
Can I use a VA loan to buy land and build?
Yes, if land is part of the overall construction plan and you work with a VA-approved lender that offers construction financing.
How long does a VA construction loan take?
On average, 6–12 months, depending on builder timelines, inspections, and permit approvals.
What credit score is needed?
Minimum scores vary, but many lenders may accept 620+. Higher scores may improve your loan terms.
Is there a VA one-time close loan?
Yes. Some VA lenders offer a single-close option that covers both construction and the permanent mortgage phase.
reAlpha Mortgage, LLC (NMLS #1743790) | Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval and underwriting review. Loan terms, availability, and eligibility requirements are subject to change without notice. Not all applicants will qualify. Please consult your licensed mortgage professional for personalized guidance.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.