Quick Answer
A VA one-time close construction loan enables eligible veterans to build a home with no down payment and a single closing. It combines land, construction, and permanent financing into a single loan, locks in your mortgage rate from the start, and converts to a standard VA loan after the home is completed.
Build a home with zero down using your VA benefits
If you’re a veteran or active-duty service member, the VA one-time close construction loan offers a powerful way to build your dream home, with no down payment required.
Unlike traditional construction loans, this VA-backed option lets you finance land, construction, and your permanent mortgage through a single loan, with one application and one closing.
This guide explains how the VA one-time close loan works, who qualifies, and why it’s one of the most affordable ways for eligible veterans to build a home in 2025.
Get qualified for a VA single-close construction loan with GO Mortgage.
What is a VA one-time close construction loan?
A VA one-time close loan (also called a VA construction-to-permanent loan) is a mortgage product that allows qualified veterans to:
- Purchase land (if needed
- Finance the cost of construction
- Automatically convert the loan to a standard 15- or 30-year VA mortgage once the home is complete
Unlike traditional two-time close loans, you don’t need to refinance or requalify after construction. You close once, lock in your rate upfront, and avoid the stress of multiple loan approvals.
Key benefits of a VA one-time close loan
- Zero down payment required: Most eligible veterans can finance 100% of the land, construction, and permanent loan. No down payment is needed
- No private mortgage insurance (PMI): You won’t pay monthly mortgage insurance premiums, even with 100% financing
- Locked interest rate before construction: Secure your mortgage rate at closing to protect against future market increases
- Only one loan closing: Reduces paperwork, fees, and complexity compared to two-time close options
- Supports custom or modular homes: You can build a stick-built, modular, or panelized home as long as it meets VA standards and local code
Who qualifies for a VA construction loan in 2025
To be eligible for a VA one-time close loan, you must meet the following criteria:
- Be an eligible veteran, active-duty service member, or surviving spouse
- Have a valid Certificate of Eligibility (COE)
- Use the loan to build a primary residence
- Meet minimum credit and income standards (typically 620+ FICO)
- Work with a VA-approved builder
- Build on land that you own or are purchasing through the loan
2025 VA entitlement and loan limits
As of 2025, veterans with full entitlement no longer face traditional loan limits. This means you can borrow above conforming limits without a down payment, as long as your income and credit support the loan.
For veterans with partial entitlement (due to previous VA loans or active guarantees), standard conforming limits may apply.
In most areas, that’s:
- $806,500 for a single-family home
- Higher limits in high-cost counties (up to $1,209,750)
GO Mortgage can help determine your entitlement status and confirm how much you can borrow.
How does a VA one-time close construction loan work
| Step | Description |
| 1 → Get prequalified | Submit your Certificate of Eligibility (COE), income, and credit details to a VA-approved lender like GoMortgage. |
| 2 → Choose a builder | Work with a VA-approved contractor. Your lender will verify licensing, insurance, and past performance. |
| 3 → Submit home plans | Provide blueprints, specs, and a detailed cost breakdown. These documents are used for appraisal. |
| 4 → Appraisal and underwriting | The lender orders an appraisal based on the projected value of the completed home. Underwriters review your file for final approval. |
| 5 → Close the loan | You close once, covering land (if needed), construction, and the permanent mortgage. Interest rate and terms are locked. |
| 6 → Construction begins | Funds are released to the builder in stages (draws) after inspections confirm work progress. |
| 7 → Final inspection and occupancy | Once the home is complete, the local municipality issues a certificate of occupancy. |
| 8 → Loan converts to mortgage | Your construction loan automatically becomes a standard VA loan with no second closing or refinance needed. |
FAQ: VA construction loan for veterans
Q: Can I build a modular or manufactured home with a VA construction loan?
A: Yes, modular and panelized homes are eligible if they meet VA guidelines and are placed on a permanent foundation. Manufactured homes may be allowed with restrictions. Check with your lender to determine if there are any restrictions or limitations.
Q: Is the VA funding fee required on construction loans?
A: Yes. The VA funding fee applies, but it can be rolled into the loan amount. Veterans with service-connected disabilities may be eligible for an exemption.
Q: What if I already own the land?
A: You can use the land’s equity as your down payment—even though most VA loans don’t require one. The land must meet VA property standards.
Q: How long does the construction loan process take?
A: Closing usually takes 30–45 days. Construction timelines vary significantly but typically range from 4 to 8 months, depending on the project scope and builder availability.
Q: Can I include closing costs in the loan?
A: Yes, closing costs and the VA funding fee can be financed into your total loan amount, as long as you stay within program guidelines and your appraisal supports the value.
Build with confidence using your VA benefits
A VA one-time close construction loan lets you take full advantage of your military service by financing a custom-built home with no down payment and no PMI.
As a veteran-focused lender, GoMortgage helps you:
- Verify your VA entitlement and eligibility
- Select an approved builder
- Understand your budget and loan limits
- Manage appraisals, draw schedules, and close
- Build a custom or modular home using your earned benefits
Take the next step toward building your home. Get started today with GoMortgage and put your VA benefits to work for your future.