A construction loan in Florida finances the build of a new home, releasing money to your builder in stages and converting to a permanent mortgage when the home is complete. For eligible veterans, the strongest version in the state is the VA one-time close construction loan: $0 down with full entitlement, no mortgage insurance, one closing, and no payments during construction. Conventional and FHA construction loans cover everyone else.
Security America Mortgage has specialized in construction lending for two decades, and Florida is one of our busiest states. Most Florida banks quote a conventional construction loan with 20 to 25 percent down and two closings. This page covers what the stronger structures look like, the 2026 numbers, and the Florida-specific rules that decide whether a build goes smoothly. Also see our VA one-time close guide, Florida builders, and mortgage calculators.
Comparing lenders? See what to look for in VA construction loan lenders, and estimate your loan amount and monthly payment with our VA construction loan calculator.
| VA One-Time Close | Conventional Construction | FHA Construction | |
|---|---|---|---|
| Down payment | $0 with full entitlement | As little as 5% with our one-time close (many banks ask 20 to 25%) | 3.5% minimum |
| Mortgage insurance | None | Required under 20% down | UFMIP plus monthly MIP |
| Closings | One | One with our one-time close (often two at banks) | One with FHA OTC |
| Credit (our program) | 620 minimum (640+ typical) | From 620, subject to underwriting approval | 650 |
| Payments during construction | None, builder carries interest | Usually interest payments | Varies |
| Who it fits | Veterans and active duty | Strong-credit civilian buyers | Lower down payment, no military service |
All three can combine the land purchase and the build into one transaction. The rest of this page focuses on the VA version because it is the one almost no Florida lender offers, then covers the conventional and FHA paths.
A construction loan is short-term financing that pays for a home build in draws as work passes inspection, instead of handing over the full amount at closing. In Florida these loans fund custom homes, new builds in growing suburbs, land-plus-construction purchases, and modular homes on permanent foundations.
The structure that matters is the one-time close, also called construction-to-permanent. You qualify once, close once, and when the home is finished the same loan becomes your permanent 30-year mortgage. The old two-time close structure means a second closing, a second set of fees, and a second underwrite after the build, and if rates jump or your finances change during construction, that second approval is not guaranteed. The one-time close construction loan removes that risk.
Eligible veterans can build anywhere in Florida with no down payment, no PMI, and one closing. The program at Security America Mortgage:
The VA funding fee applies instead of a down payment: 2.15 percent for first use, 3.3 percent for subsequent use, and it rolls into the loan. Veterans receiving VA disability compensation are exempt from the funding fee entirely, which in Florida is a large share of the borrowers we close.
With full VA entitlement, there is no VA-imposed loan limit in Florida. The loan amount is governed by income, debts, and the appraised value of the completed home, not a county cap. Many Florida lender pages still quote loan limits, and several are showing figures that are years out of date.
County limits only matter with reduced entitlement, meaning you already carry an active VA loan or lost entitlement to a foreclosure. In that case, 66 of Florida's 67 counties use the 2026 baseline conforming limit of $832,750. Monroe County, covering the Florida Keys, is the state's one high-cost county and carries a higher limit. Building with partial entitlement? Run your exact number in our VA loan limits calculator or call us.
Conventional construction loans follow the same $832,750 conforming limit in 2026, with jumbo construction available above it. FHA limits run lower and vary by county.
On a $450,000 Florida build, the conventional down payment is $90,000 to $112,500. The VA one-time close asks for nothing down.
| $450,000 build | VA One-Time Close | Typical Florida Conventional |
|---|---|---|
| Cash down | $0 | $90,000 to $112,500 |
| Monthly mortgage insurance | $0 | Required under 20% down |
| Closings and fee sets | One | Often two |
| Payments during the build | None in our program | Interest during construction |
| Rate at completion | Structure set at closing | Permanent rate often unknown until the second close |
Construction rates on two-time close loans also typically run 0.5 to 1.5 percent above permanent mortgage rates, which the one-time close structure avoids entirely.
No. The VA eliminated the Builder ID requirement in March 2025, so your builder does not need VA registration. This is the most misunderstood part of Florida construction lending right now. Veterans are still posting in Florida Facebook groups hunting for contractors with a "VA certified builder number," and builders still turn away VA buyers over a requirement that no longer exists. Under VA Circular 26-25-01, it is gone.
What your builder actually needs:
That describes most established Florida builders. If yours has never done a VA construction loan, we walk them through the draw process directly, and it is simpler than they expect. Still choosing? Start with our Florida builders resource and we will tell you which builders we have already closed with in your county.
The loan can buy the lot and fund the build in one transaction, or build on land you already own. With Florida resale inventory tight and buildable land still available, this is how most of our Florida builds start. If you already own the lot, its value works as equity at underwriting and can replace cash you would otherwise bring. If you carry a lot loan, the construction loan can pay it off at closing.
What a VA loan cannot do is buy raw land alone with no construction plan attached. The lot also has to clear VA property requirements: legal access, utilities or an approved plan for well and septic, and zoning that allows a residential build.
Before you go under contract on land, have us check three things: the FEMA flood determination, utility availability, and zoning. Five minutes of checking prevents the two most common ways Florida land deals fall apart in underwriting.
Florida adds three considerations most states do not have: wind code, flood zones, and insurance during construction.
Every new Florida home is engineered to the current Florida Building Code wind-load requirements for its zone, and the High-Velocity Hurricane Zone (Miami-Dade and Broward) meets a stricter standard still. This is a quiet advantage of building new: wind mitigation credits are built in rather than retrofitted, which typically means better windstorm insurance pricing than a comparable older home.
If the lot sits in a FEMA special flood hazard area, flood insurance is required and the finished floor elevation must meet or exceed the base flood elevation. We check this on the lot before you are deep in the deal.
The structure must be insured while it goes up. In our program the builder carries this during construction and your homeowner's policy takes over at completion. Whoever you borrow from, confirm that split is written into the construction contract.
None of these are reasons not to build in Florida. They are reasons to use a lender that builds in Florida every month.
Florida has the third largest veteran population in the country, and construction activity follows the bases and the affordable land. We close across all 67 counties, heaviest in these corridors:
Jacksonville, St. Johns, Clay, and Nassau counties, driven by NAS Jacksonville and NS Mayport
Pensacola, Navarre, Crestview, and Panama City, serving NAS Pensacola, Eglin AFB, Hurlburt Field, and Tyndall AFB, with some of the best land value in the state
Pasco, Hernando, and Polk counties around MacDill AFB, where building often beats the existing-home market on price
Ocala, Palm Coast, and The Villages corridor, popular with retiring veterans who buy land first and build second
Brevard County around Patrick Space Force Base
Stationed at a Florida base and comparing areas? Our military bases in Florida guide covers each installation's surrounding market.
Application to closing typically runs 45 to 60 days, and the build itself up to 11 months.
For VA loans we pull most Certificates of Eligibility same day, then set your build budget from income, credit, and entitlement before you sign anything with a builder.
Fixed-price contract, full plans and specs, line-item budget.
The appraiser values the completed home from the plans, land included.
Land purchase (if needed) and construction financing close together, and the permanent structure is set.
The builder is paid in stages as work passes inspection. In our VA program you make no payments during this period.
Final inspection, and the loan converts automatically to the permanent 30-year mortgage. Your first regular payment begins after the home is done.
Estimate your numbers first with the construction loan calculator.
Not VA eligible? Florida builds still work with two other structures. The conventional construction loan fits buyers with stronger credit and cash: most Florida banks ask for 20 to 25 percent down, while our conventional one-time close can go as low as 5 percent down with credit scores starting at 620, subject to underwriting approval, and mortgage insurance applies below 20 percent down. The FHA one-time close brings the down payment to 3.5 percent with a 650 minimum score, in exchange for upfront and monthly mortgage insurance. Both can combine land and construction in one loan, and both convert to a permanent mortgage at completion. We quote all three side by side so the comparison is in writing, not in a sales pitch.
Qualifying is no harder than a regular purchase loan. The hard part is finding a lender that offers the program, especially the VA version. The VA guarantees construction loans but does not require lenders to offer them, so most Florida banks and the big national VA shops do not. That is why searches for this loan surface Facebook threads of veterans saying their builder is ready but they cannot find a lender. The actual bar with us: 640 score for VA, acceptable debt-to-income, a valid COE, a licensed Florida builder, and a complete construction package.
During construction, nothing in our VA program, because the builder carries the interest. After conversion, a $200,000 loan at recent 30-year rates runs roughly $1,300 to $1,450 per month in principal and interest, before Florida property taxes and insurance. We give you the exact figure with a live quote before you commit to anything.
The land purchase must be part of a project to build a primary residence; a VA loan does not finance vacant land to hold indefinitely. Buy-and-hold needs a land loan or cash, and the construction loan can then pay off that lot loan when you are ready to build. If the build starts now, land and construction combine into one VA loan with one closing.
The builder must be properly licensed and insured for the work in Florida and meet our builder-acceptance requirements. VA registration is no longer one of them. Most borrowers choose a local builder who knows county permitting and the wind code, which saves time in practice even though it is not a rule.
Modular on a permanent foundation, yes. Barndominium, sometimes. The completed home must be residential property the appraiser can value against comparable sales. Modular and site-built homes clear that easily. A barndominium works when the design is primarily residential and the county has comparable sales, which is more common in North Florida and the Panhandle than in metro areas. Send us the plans and county and we will give you a straight answer before you pay for drawings.
Not necessarily. If the previous home sold and entitlement was restored, you are back to $0 down. If you still hold a VA loan, a down payment applies only when the new loan exceeds what your remaining entitlement covers. Our VA loan limits calculator shows your number in about a minute.
For VA with full entitlement, no cap applies. With reduced entitlement, every Florida county uses the $832,750 baseline in 2026 except Monroe County in the Keys, which runs higher. Conventional conforming follows the same $832,750, with jumbo construction above it.
Determine how much home you can afford.
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Calculate your Basic Housing Allowance.
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Estimate your loan preapproval amount based on your income and expenses.
See if refinancing makes sense for you.
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