Use your VA home loan benefit to build, with one loan and one closing.
A VA one-time close construction loan lets eligible veterans, service members, and surviving spouses finance the lot (if needed), the build, and the permanent VA mortgage with one closing. Ken Clark Jr. helps veterans in Sacramento, Northern California, New Jersey, and nationwide where licensing permits plan VA construction through PRMG programs.
Short answer: it is a VA home loan used to build a new home, most often structured as a one-time close loan that covers construction and the permanent VA mortgage in one closing.
You close once at the start. Construction funds are held and released to your builder as work is completed and inspected. When the home is finished and passes final inspection, the loan converts to your permanent VA mortgage. Learn how one-time close works in general on the one-time close guide.
Short answer: eligible veterans with full entitlement may finance up to 100 percent, meaning no down payment, subject to the appraisal, entitlement, and program guidelines.
The VA funding fee applies unless you are exempt, for example because of a service-connected disability rating. VA loans do not have monthly mortgage insurance. If you have used your entitlement before, see VA second use.
Short answer: in most cases, none. On FHA and VA one-time close loans, the interim interest during construction is typically paid by the builder and built into the contract price, so your first mortgage payment is due after the home is finished.
You are typically responsible for property taxes that come due during construction. If you are renting while you build, that is usually your main housing cost during the build.
Short answer: eligible veterans, service members, and surviving spouses with a Certificate of Eligibility who meet credit and income guidelines and are building a one-unit primary residence.
| Requirement | Generally |
|---|---|
| Eligibility | VA Certificate of Eligibility |
| Credit | Minimum scores for one-time close commonly start around 620 with an automated approval, and higher for manufactured homes, depending on program guidelines |
| Income and DTI | Automated underwriting and VA residual income guidelines |
| Occupancy | Primary residence, one unit |
| Loan amount | Program loan limits and entitlement apply |
Short answer: yes. The lot can be purchased at closing, or a lot you already own can be included, with any land loan paid off at closing.
If the land was a gift or you have owned it for a required period (commonly 12 months on VA), its current value rather than your purchase price may be used. See using land equity and buying land and building.
| Home type | Generally |
|---|---|
| Site-built (including panelized) | Eligible |
| Modular | Eligible |
| Multi-section manufactured on a permanent foundation | May be eligible, with added requirements |
| Single-wide manufactured | Commonly ineligible |
| Barndominium, post-frame, log, metal, container | Commonly ineligible on government one-time close |
One-unit, owner-occupied homes. Acreage limits may apply, commonly around 10 acres for manufactured homes.
Short answer: your builder must be licensed, act as the general contractor under a fixed-price, turnkey contract, and complete builder registration. Owner-builder and do-it-yourself projects are not eligible.
VA also requires the builder to have a VA builder ID.
Builder registration is a documentation review for program eligibility, not an endorsement of the builder. It is commonly completed once, before the first project. Details: builder registration.
Short answer: construction commonly needs to be completed within about 9 months of closing, with up to 12 months considered case by case, depending on the program.
Build in a cushion for weather, inspections, and permits. If construction runs past the allowed period, pricing and costs can change, so a realistic builder schedule matters.
From application to closing commonly takes about 60 to 75 days or more, because the builder, plans, and appraisal all have to come together.
Where available: PRMG one-time close programs are available in every state where PRMG is licensed, which is all states except New York, subject to eligibility and program guidelines. In California, building, well, and septic permits are typically required before closing.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
Yes. Eligible veterans may use a VA one-time close construction loan to finance land, construction, and the permanent VA mortgage with one closing, subject to entitlement, builder requirements, appraisal, and program guidelines.
Eligible veterans with full entitlement may finance up to 100 percent, subject to the appraisal and program guidelines.
In most cases, no. The interim interest is typically paid by the builder and built into the contract price, so your first payment is due after the home is finished. You typically pay property taxes that come due during construction.
Yes. VA requires builders on VA construction loans to have a VA builder identification number, in addition to lender builder registration.
No. VA one-time close requires a licensed builder acting as the general contractor under a fixed-price contract.
Yes, the lot can be purchased at closing as part of the loan, or a lot you already own can be included.
Multi-section manufactured homes on a permanent foundation may be eligible, with added requirements. Single-wide homes are commonly ineligible.
Barndominiums and post-frame homes are commonly ineligible on government one-time close programs.
Yes, the VA funding fee applies unless you are exempt, such as veterans receiving compensation for a service-connected disability.
Commonly about 60 to 75 days or more from application, because builder registration, plans, and the appraisal must be completed.
No. The loan converts to the permanent VA mortgage without requalifying. You sign a modification document at completion.
Yes. PRMG one-time close programs are available in California and every other state where PRMG is licensed (all states except New York), subject to eligibility and program guidelines. In California, permits are typically required before closing.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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