For builders, realtors, and VA homebuyers
VA Construction Builder Checklist and Resources
The VA construction builder checklist gives builders, Veterans, and real estate professionals one place to estimate the project and organize our contractor and project requirements. It covers the plans, contract, budget, appraisal, insurance, prepaid items, and draw information we need for a VA one-time close construction review.
PBT’s contractor standards are our requirements, not universal VA rules. The VA eliminated the Builder ID requirement for ordinary VA-guaranteed new and proposed construction loans effective March 31, 2025. The builder must still meet state and local licensing rules and pass our separate contractor and project reviews. Builder ID rules for specially adapted housing grants and VA direct-loan programs are different.
- Current VA builder rule checked
- Separate contractor and project reviews
- Program details verified July 20, 2026
- PBT Bancorp NMLS #257781
Speak with a VA loan specialist about your loan options.
Send your name, email, and phone. A VA loan specialist will call you back and point you in the right direction. No credit pull.
What should we help you check?
Thanks. We will call you back shortly.
Prefer not to wait? Call 800-697-4371 or text us at (800) 697-4371.
How can you estimate a VA one-time close project?
Enter the land, construction contract, contingency, estimated interest reserve, rate, and appraised value to see the estimated total loan and permanent principal and interest payment. The affordability tab can then compare the payment with your income and debts.
Working files
Which construction resources should you use before project review?
The calculator provides an early estimate, and the worksheet and checklist show what we need for the contractor and project reviews.
Calculator
VA one-time close calculator
Run land, construction, contingency, interest reserve, funding fee, and permanent payment estimates.
Open calculator
Online worksheet
Interactive construction budget
Build an itemized budget that matches the signed construction contract and includes contingency, insurance, draw, and completion costs.
Open budget worksheet
Online checklist
Contractor and project checklist
Review the experience, PAYDEX, licensing, insurance, references, plans, contract, appraisal, and completion items before submission.
View checklist online
Printable PDF
Contractor and project checklist PDF
Download the branded checklist for you, the builder, the loan officer, and the project records.
Download checklist PDF
Printable PDF
Construction budget worksheet PDF
Download a clean worksheet with space for amounts and notes across every major project-cost category.
Download budget PDF
State comparison
VA construction costs by state
Compare permit valuation benchmarks with Redfin median sale prices before replacing the state estimate with a local builder quote.
View state data
Project review
Want us to review your financing, land, and builder together?
Send us the location, land status, estimated build amount, builder information, and expected completion date. We can tell you what needs to be verified next.
How we review the builder
What does the contractor need for approval?
The contractor review looks at the company, its construction history, business credit, licensing, insurance, references, identity, tax information, and the account used to receive draw funds.
Experience
Three years and ten completed homes
The contractor needs at least three years of experience and ten completed homes. At least five must be ground-up construction rather than renovation projects.
Business credit
Dun & Bradstreet PAYDEX score of 65 or higher
Provide the company’s Dun & Bradstreet number and business information so we can obtain the required credit report and verify a PAYDEX score of at least 65.
License and insurance
Active license, workers’ compensation, and liability coverage
Provide the active license for the state where the home will be built, workers’ compensation coverage or a valid exemption, and at least $1 million in general liability coverage.
Questionnaire and references
Completed company history and contactable references
Include the signed contractor questionnaire, three years of project history and gross sales, homeowner references from completed work, subcontractor references, a valid photo ID, current W-9, and wire instructions.
How we review the plans and budget
What documents are required for the construction project?
Project approval is separate from contractor approval, and every document below needs to describe the same home, scope of work, contract amount, budget, and expected completion schedule.
Plans
Floor plans, specifications, and all four elevations
Provide the complete floor plans and the north, south, east, and west elevations, along with the specifications and any supporting soils or engineering reports.
Contract
Fully executed construction agreement
You and the contractor must sign an agreement whose scope, total contract amount, allowances, payment terms, and completion date match the rest of the submission.
Budget
Itemized costs that match the contract
The budget must match the signed contract and include a 5% contingency, construction-period costs, builder’s risk insurance, inspections, and the applicable draw fees.
Property and funds
Appraisal, prepaids, permits, and draw information
Include the complete appraisal, permits when available, proof for prepaid items being credited, wire authorization, and a detailed request if the builder needs an eligible draw at closing.
What do current VA rules and PBT require from the builder?
VA Circular 26-25-1 eliminated the VA Builder ID requirement for ordinary VA-guaranteed new and proposed construction loans effective March 31, 2025. The 2025 Builder ID change did not apply to specially adapted housing grants or VA direct-loan programs, which follow their own identification rules. The builder must meet state and local licensing rules, and PBT’s current one-time close program separately reviews the contractor’s experience, business credit, licensing, insurance, references, identity, tax information, and draw account.
Plans, specifications, the signed contract, itemized budget, appraisal, permits, insurance, draw information, and completion documents must consistently describe the proposed home. VA Circular 26-25-1, the current VA Lenders Handbook Chapter 7, and the VA construction-loan overview explain the federal rules, while PBT’s checklist explains the current lender review.
What should builders know before signing the construction contract?
The construction agreement needs to match the program requirements before closing because later changes may require us to review the contractor or project again.
Owner-builders are not eligible
You cannot act as the general contractor under our current one-time close program because we must approve both the builder and the project.
The budget includes a contingency
Our current program requires a 5% contingency based on construction costs. Any amount remaining after the final draw is reconciled when the loan is modified to permanent financing.
Builder’s risk does not replace general liability
Builder’s risk protects the construction project, while contractor approval separately requires at least $1 million in general liability coverage, so we may need both documents.
A draw at closing needs its own request
If the builder needs money at closing, the amount and purpose must appear in the approved budget. Our current program limits that first payment to 10% of construction cost or $50,000, whichever is less.
Include draw fees in the budget
The budget must include the planned number of builder payments and the fees for administering those payments, inspecting the work, and updating title.
The project review fee is paid before review
A one-time $425 project review fee is required. The three-business-day review period begins after we receive the fee and a complete, accurate submission.
The contract cannot include rehab work
This program finances a newly constructed home rather than the renovation of an existing property. A completed foundation can also make the project ineligible or require additional review.
Prepaid items need proof
If you request credit for eligible costs paid before closing, we need the matching invoice and proof of payment. The same prepaid cost cannot also be reimbursed as cash back.
Review the plans and budget
Want us to check what is still missing?
Complete the callback form, and a PBT Bancorp VA construction specialist will call to review the builder, plans, budget, and documents that still need to be collected.
Why use PBT Bancorp for a VA construction project?
PBT Bancorp is an FDIC member bank and wholesale broker with access to more than 35 wholesale lenders. Our bank and wholesale access lets us match each project to a program whose contractor, property, budget, and draw requirements it can actually meet. Before we recommend a program, we compare the contractor approval, plans, budget, completed-value appraisal, and proposed loan terms and resolve any conflict among them.
Our current VA one-time-close option can consider credit scores as low as 580 and allows a construction period of up to 11 months before the permanent payment begins. We review your financing first, then separately review the builder, plans, budget, and finished-home appraisal. We may also consider modular and manufactured homes after we check the foundation, title, land, and permanent financing.
Program guidance
Which VA construction loan resources should you read next?
The program guide answers common financing questions, the state study helps with early budgeting, and the official VA sources explain builder registration and property requirements.
Construction guide
VA one-time close construction loan
Review eligibility, land equity, construction payments, appraisal, property types, and the complete PBT calculator.
View program guide
PBT process guide
How a VA construction loan works
Follow the builder approval, plans, appraisal, closing, draws, inspections, and completion process in more detail.
View process guide
Official VA source
VA construction and valuation guidance
Read the controlling March 31, 2025 rule eliminating the Builder ID requirement for ordinary VA-guaranteed new and proposed construction loans.
Read VA Circular 26-25-1
Start the review
Get pre-qualified
Begin your financing review while the land, builder, plans, and complete project budget are being organized.
Start your review
VA construction builder questions
Does a builder need a VA Builder ID for a construction loan?
A VA Builder ID is no longer required for ordinary VA-guaranteed new or proposed construction loans. VA Circular 26-25-1 eliminated that requirement effective March 31, 2025. Builder ID rules for specially adapted housing grants and VA direct-loan programs are different, and a lender can still require its own contractor approval, licensing, insurance, experience, credit, and project review.
What experience does the contractor need?
Our current program requires at least three years of experience and ten completed homes, including at least five ground-up construction projects. If the questionnaire does not show that history clearly, we may ask for a contractor resume or records from prior builds.
What insurance does the contractor need?
Contractor approval requires workers’ compensation coverage or a valid exemption and at least $1 million in general liability coverage. Builder’s risk insurance is a separate project requirement and cannot be used in place of general liability coverage.
Can the Veteran act as the builder?
No, owner-builders are not eligible under our current VA one-time close program. The project requires an approved builder or general contractor and a construction agreement that meets the program requirements.
How long can construction take?
Our current program requires construction to be completed in 11 months or less, followed by the modification to permanent financing. The contract, budget, draw schedule, and expected completion date need to support that timeline.
How long does the project approval review take?
We target a decision within three business days after receiving the one-time $425 review fee, final plans, signed contract, budget, appraisal, and required builder documents. Missing information or later changes to the plans, contract, budget, or appraisal can extend that timeline.
Can contractor approval start before I find land?
Yes, contractor approval can begin before the final property is selected. The contractor must still be approved before clear to close, and the separate project approval cannot be completed until the home, land, plans, contract, budget, appraisal, and related documents are ready for review.
Who pays for builder’s risk insurance?
Builder’s risk insurance must be effective at closing and meet the coverage requirements for the project. Under our current VA program, the builder pays the premium and includes it in the construction budget.
Can owned land count toward the VA construction project?
We can count documented land value after verifying ownership, existing liens, purchase details, and the appraisal. We then show how the land value accepted by PBT changes the construction budget, loan amount, and cash due at closing.
Can a manufactured or modular home use one-time close financing?
Manufactured and modular homes may be eligible under our current program when the builder, property, plans, foundation, title, appraisal, and all other loan requirements are satisfied.
Organize the project before construction begins
Call 800-697-4371 or complete the callback form. A dedicated VA construction specialist will call to discuss the location, land status, estimated build amount, builder information, expected completion date, and what still needs to be verified.
Last reviewed July 20, 2026.