VA construction financing
VA One-Time Close Construction Loans
PBT Bancorp offers VA one-time close construction loans for eligible Veterans, active-duty service members, and surviving spouses who want to build a primary home. One loan can cover an eligible lot, the construction budget, and the permanent VA mortgage, with one closing at the start. Our program can work with a credit score as low as 580 when the borrower, builder, property, plans, budget, and appraisal all fit the program.
Need more information?
Speak with a VA loan specialist about your loan options.
No credit pull, no obligation. We can usually tell you the next step in a few minutes.
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?
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Prefer not to wait? Call 800-697-4371 or text us at (800) 697-4371.
Who offers VA construction loans?
Not every lender that advertises VA loans offers a true construction-to-permanent loan. Many lenders can close a normal VA purchase after a home is finished, but construction requires them to approve the borrower, builder, lot, plans, budget, appraisal, draw schedule, insurance, and final completion before the loan closes.
We offer VA one-time close construction loans through PBT Bancorp and work with more than 35 wholesale lenders, which gives us a wider view of the available options than a lender with only one set of guidelines. We are an FDIC member bank and a wholesale broker licensed in all 50 states, and we can usually tell you early whether the build looks like it fits before you spend more money on plans or deposits.
What is a VA one-time close construction loan?
A VA one-time close construction loan is one mortgage that can pay for an eligible lot, the cost to build the home, and the permanent financing you keep after construction. You close before the work starts, the builder receives funds in approved draws as construction moves forward, and the loan changes to regular principal and interest payments after the home is complete.
Our current program can finance up to 100 percent of whichever is lower, the eligible acquisition cost or the finished appraised value, subject to VA entitlement and the full loan review. The home must be your primary residence, no cash back is allowed, and the VA loan does not require monthly private mortgage insurance (PMI).
Use the calculator to estimate the eligible land cost, builder’s bid, 5 percent contingency, construction interest reserve, VA funding fee, finished value, and possible cash needed before you request a full quote.
Can you buy land and build with the same VA loan?
Yes, an eligible lot purchase can usually be included with the construction budget in the same one-time close loan. If you already own the lot, we review the current land value, any balance still owed, the construction contract, and the finished appraisal to see how the equity fits into the transaction.
What many Veterans may not realize is that owning land does not automatically remove every cash requirement. The loan is still limited by the lower eligible project cost or finished value, and items that cannot be financed may still be due at closing. We put those numbers together before you commit so you can see whether the land value helps cover the difference or whether the budget needs to change.
Want us to review the land, builder, and budget?
A VA specialist can look at the basic numbers with no credit pull and explain what we would need next.
What does your builder need for a VA construction loan?
Your builder must be approved by the construction lender and meet the licensing requirements that apply where the home is being built. We usually review the builder’s experience, license, insurance, signed construction contract, plans, specifications, budget, timeline, draw schedule, warranty, and permit plan before the file is ready to close.
- State and local license when required
- Insurance that meets the construction program
- Detailed plans and material specifications
- Signed contract and complete cost breakdown
- Realistic construction and draw schedule
- Builder’s risk coverage effective at closing
- Required new construction warranty
- Local permit and inspection plan
VA removed the Builder ID requirement for regular VA-guaranteed new and proposed construction on March 31, 2025. Your builder does not need a VA Builder ID for this type of loan, but the lender still has to approve the builder and the project.
Review VA Circular 26-25-1 for the official change.
What can slow down a VA construction loan?
The delays we see usually start before construction, not during it. An incomplete set of plans, a builder who is not ready for lender review, missing insurance, permits that are still pending, or a budget that does not match the appraisal can stop the file before closing.
Change orders can also cause trouble after the build starts, particularly if they increase cost or change the finished value without approval. We have streamlined our review around these items because fixing them early is usually much easier than changing the loan after the construction documents are signed.
- Incomplete plans or cost breakdown
- Builder approval or insurance not ready
- Appraisal below the full project cost
- Permits or local approvals still pending
- Unapproved change orders after closing
- Unusual property without good comparable sales
What costs are built into the construction budget?
The construction budget typically includes the builder’s contract, eligible land cost or land balance, a 5 percent contingency, an interest reserve for the construction period, required insurance, draw administration, permits, the VA funding fee when it applies, and other approved costs. Some items may still be due in cash, and we show those separately before closing.
Any unused contingency reduces the principal balance when construction is complete under our current program. The interest reserve helps cover interest while the home is being built, which is why regular principal and interest payments generally begin after construction and the permanent loan modification are finished.
Why work with PBT Bancorp for your build?
Our team has decades of experience working with Veterans and has helped over 3,000 families buy, build, or refinance a home. A VA construction loan is a specialty product, and it helps to work with a team that can explain the borrower side and the builder side before anyone signs a contract.
PBT Bancorp is an FDIC member bank and a wholesale broker licensed in all 50 states. We work with more than 35 wholesale lenders, and our current VA one-time close program can work with a 580 minimum credit score when the rest of the loan qualifies.
- A dedicated VA specialist from the first review through closing
- Construction lender access beyond one retail program
- 580 minimum credit score under our current program
- Nationwide licensing for eligible builds in all 50 states
- Clear review of land, builder, budget, appraisal, and cash needed
VA construction loan questions
Who offers VA construction loans?
PBT Bancorp offers VA one-time close construction loans for eligible borrowers nationwide. Not every VA lender offers construction financing because the lender must also review the builder, lot, plans, budget, appraisal, draws, insurance, and final completion.
How much do I need to put down on a VA construction loan?
Eligible borrowers may finance up to 100 percent of whichever is lower, the eligible project cost or the finished appraised value, subject to entitlement and full approval. If the project costs more than the supported value or includes a non-financeable item, the difference may be due in cash.
Can I buy land and build with the same VA construction loan?
Yes, an eligible lot purchase can often be included with the construction budget in one loan. We review the purchase contract, lot, builder’s contract, plans, budget, and completed appraisal together before confirming the final structure.
Can I use land I already own?
Yes, land you already own can be part of the transaction, and its value may help when we compare the eligible acquisition cost against the completed appraisal. Any existing land balance and title requirements also have to be included in the review.
Does my builder need a VA Builder ID?
No, your builder does not need a VA Builder ID for this type of loan. VA Circular 26-25-1 removed that requirement for regular VA-guaranteed new and proposed construction, while state and local licensing rules and construction lender approval still apply.
Can I act as my own builder?
No, owner-builders are not allowed under our current VA one-time close program. The project needs an approved builder who can provide the required construction documents, insurance, warranty, budget, and draw schedule.
What credit score do I need for a VA construction loan?
The VA does not publish one universal minimum credit score, but construction lenders set their own requirements. Our current VA one-time close program can work with a 580 minimum credit score when the borrower and the full project qualify.
When do my mortgage payments begin?
Our current program includes an interest reserve in the construction budget, so regular principal and interest payments begin after construction and the permanent loan modification are complete. We show the interest reserve and expected payment start before you close.
Does the VA require a final inspection?
Yes, the lender requires final completion documentation, which includes a final inspection or other approved evidence that the home was completed according to the plans and applicable requirements. A certificate of occupancy and any remaining survey or title items may also be required.
Can change orders be added after closing?
Change orders must be reviewed before the builder completes the changed work because they can affect the approved budget, appraisal, contingency, timeline, and borrower funds. An unapproved increase is not automatically added to the loan.
What happens to an unused 5 percent contingency?
Under our current program, any unused contingency is applied as a principal reduction after construction is complete. It is not paid back to the borrower as cash.
Do I need a local VA construction lender?
You need a local builder who meets the rules where the home is being built, but the lender does not have to be down the street. PBT Bancorp is licensed in all 50 states and can coordinate with your builder, appraiser, title company, and local inspectors.
Ready to see whether your build fits?
Give us a call at 800-697-4371 or complete our online pre-qualification form to get started. We will review your eligibility, land, builder, budget, and estimated finished value before you decide whether to move forward.
Last reviewed July 10, 2026. Builder ID guidance verified against VA Circular 26-25-1. PBT Bancorp NMLS #257781.