A VA construction loan lets eligible veterans and service members build a home with no down payment in most cases. The VA sets no minimum credit score, but most lenders want at least 620, and the VA funding fee ranges from 1.25% to 3.3% unless you are exempt. The builder must be VA-registered, and fewer lenders offer VA construction loans than VA purchase loans.
VA construction loan requirements
| Requirement | VA construction loan |
|---|---|
| Down payment | usually none |
| Credit score | no VA minimum; most lenders require 620+ |
| Debt-to-income | generally 41% or less, plus VA residual income |
| Funding fee | 1.25%–3.3%, waived for some veterans (such as those with service-connected disabilities) |
| Eligibility | Certificate of Eligibility (COE) |
| Property | single-family primary residence; plans, specs and materials list required |
| Builder | VA-registered builder with a VA Builder ID |
| Warranty | at least one year from the builder, or an insured 10-year protection plan |
How does a VA construction loan work?
- Get your Certificate of Eligibility and find a lender that offers VA construction loans.
- Choose a VA-registered builder (unregistered builders can apply to register).
- The appraisal is based on the builder’s plans.
- Funds are released after each inspected milestone and paid to the builder.
- A final VA inspection confirms the home matches the approved plans, then the loan converts to a permanent VA mortgage.
Can I build with a VA loan if my lender doesn’t offer construction loans?
Some veterans use a conventional or bank construction loan and then refinance into a VA mortgage when the home is finished, which is a two-time close. You will have two sets of closing costs and must requalify at the end.
Frequently asked questions
Can a VA loan pay for land?
The land can usually be included when it is part of building the home you will live in.
Can I build a duplex with a VA construction loan?
VA construction lending generally covers single-family homes. Ask your lender about multi-unit options.
More on construction loans
- How construction loans work
- Construction loan rates
- Construction-to-permanent loans
- FHA construction loans
- VA construction loans
- USDA construction loans
- How to get a construction loan
- Construction loan calculator
Sources
- Bankrate: What is a VA construction loan? (last modified July 2025)
- The Lenders Network: Construction loan requirements (updated June 2026)
Loan terms change often and vary by lender. Nothing on this page is a loan offer or financial advice: confirm current rates, fees and eligibility with lenders before you apply.