VA One Time Close Construction Loan

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Our goal is to give our clients the product that match best with their interest. We offer many different kinds of loans, such as VA Home Loans, Conventional, FHA, USDA Loans, and non-conforming loans. We have many years in experience delivering out clients the best service so they can have a hassle free loan buying experience. Our Loan Officers are highly trained to deal with every kind of loan that we offer.

Experienced, Professional VA One-Time Close Construction Loan Experts Supporting Veterans Throughout The Nation

Security America Mortgage is a company that specializes in offering VA mortgages to veterans with more lenient credit requirements and more competitive interest rates. We take pride in providing 0 down payment loans to veterans that give them the chance to build or purchase their own homes regardless of their financial situation. We serve those who have served us.

Security America Mortgage offers a hands-on and personalized experience, and we have a team of experts to guide you through every step in your loan process. Our expert team has experience in helping countless veterans to get their dream home, and we offer a variety of services to bring you the help you need.

VA One Time Construction Loan - Security America Mortgage

What Is A VA One-Time Close Construction Loan (VA OTC) ?

A VA one-time construction loan is generally a construction loan designed to help veterans purchase land and build their own homes. There is no required downpayment with a VA construction loan – you can finance 100% of the cost.

VA construction loans are sanctioned by private lenders and are guaranteed by the US Department Of Veterans Affairs.

FHA Loans Vs VA OTC Lines

FHA loans are construction loans that do not require a 20% down payment and can offer loans for a down payment as low as 3.5%. FHA loans also provide lenient credit score requirements of 580. However, with a VA OTC construction loan, you can obtain the loan without a downpayment, and the credit score requirements are lenient. You are also exempt from PMI payments as a VA construction loan borrower.

The types of properties you can build with an FHA construction loan include single-family homes, condominium units in approved projects, and manufactured homes. There is a limit to how much you can borrow with an FHA loan.

Property Construction On A VA OTC Loan

The VA one-time close construction loan is designed to help veterans build single-family homes. Suppose you wish to develop an alternate property type, such as a condominium. In that case, it is recommended that you finance the project using a traditional construction loan and then refinance using a VA loan.

The VA one-time close construction loan covers purchasing land and construction costs. You will need to hire a VA-approved builder in the VA OTC loan process. You are not required to make any repayments on your VA construction loan until the construction process is finished.

VA OTC Loan Process

The VA OTC loan process requires the borrower to invest time into providing the necessary information to qualify for the loan, including their credit history, certificate of eligibility, and construction plans. It’s best to enlist the help and services of a professional to guide you through each step.

VA OTC Loan Additional Properties/Information

With a VA OTC loan, the borrower will not receive all funds in one installment after closing. Instead, the funds will be given to the borrower in installments in line with their construction timeline and plans.

What Is A VA Construction Loan?

VA construction loans are generally down payment loans for veterans. VA construction loans are available to veterans, active service members, and military spouses. This includes members of the national guard. VA one-time close construction loans are similar to VA home loans; only they cover the cost of building a home instead of purchasing a home.

VA construction loans are short-term loans with a maximum repayment period of 30 years and 32 days. VA construction loans can be used to partially fund or completely fund the construction of your home, covering the cost of purchasing the land and constructing the home.

When veterans opt for a VA construction loan, they can access better mortgage terms and avoid PMI (private mortgage insurance). Private mortgage insurance is an insurance scheme for borrowers who do not possess the 20% down payment for the loan. PMI is designed to protect the interests of the borrower.

PMI for a $250,000 home costs around $150 and can contribute significantly to your monthly payments, on top of your mortgage payments, home insurance, and property tax payments. VA construction loans do not require the borrower to invest in PMI.

In addition to this, many homeowners who opt for a VA construction loan are exempt from providing a VA funding fee.

How Long Does It Take To Close On A VA Construction Loan?

Closing a VA construction loan usually takes between 3 and 6 months. However, in some instances, the closing process could take longer, up to a year. Once you have closed your construction loan, you will receive your funds in installments. You are not required to make repayments until the construction process is complete.

Can You Get A VA Loan To Build A Home If You Do Not Own Land?

You can get a VA home loan if you do not own land. This is because the VA construction loan covers the cost of both purchasing the land and constructing the property. You aren’t required to make a down payment on a VA home loan, so there is no need to worry about paying any upfront costs for land.

VA Construction Loan Guidelines And Requirements

There are specific guidelines and requirements that you must meet to qualify for a VA construction loan and complete the application process.

Here are some of the requirements you will need to meet to qualify for a VA construction loan:

  • You will need a certificate of eligibility, which you can obtain by submitting your statement of service.
  • You will need a credit score of 620 and above.
  • You will need a DTI (debt-to-income ratio) of at least 40-55%. Your DTI ratio summarizes your current debts and whether you would be able to comfortably take on additional debt.
  • You will need a VA licensed and approved builder.
  • You will need to submit your blueprints and construction plans.
  • You will need to perform a property appraisal.
  • You will need a minimum FICO score of 550 – a FICO score is an alternative type of credit score that lenders can use to understand your financial viability.
  • There must be a minimum FICO score of 620 for all qualifying borrowers. There must be at least 2 FICO scores submitted for all qualifying borrowers. If 2 scores are submitted, the lower score will be used by the lender. If 3 scores are submitted, the middle score will be used. If your score is above 660, you are only required to submit 1 score.

What Is A Statement of Service?

A statement of service is a letter provided by your commanding officer denoting the details of your service. Once you have submitted your statement of service, you will receive a certificate of eligibility for your loan.

The statement of service should include your current status and the number of active and peacetime days you have served. National Guard members, veterans, and active service members can qualify for a VA construction loan based on the duration of their service.

Military spouses are only eligible under special circumstances if their spouse died in the field of duty or died from a service-related disability or injury.

VA Loan Credit Requirements

To be eligible for a VA construction loan, you must have a credit score of 620 or above. Lenders will generally only look at the past 12 months of your credit history for analysis unless there are highly relevant credit incidents in your past, such as bankruptcy, tax liens, and collections. There is far more leniency offered in credit score with a VA loan than traditional construction loans.

VA OTC And Construction Loan Benefits

There are many benefits to choosing a VA construction loan over a conventional one. If you are eligible for a VA loan as a veteran, active duty service member, or military spouse, consider whether a VA construction loan suits your needs.

Why Choose A VA Construction Loan Over A Conventional One?

With a VA construction loan, you can receive better mortgage terms. If you do not have the funds for a downpayment on a conventional loan, you can opt for a VA construction loan that will cover 100% of the costs.

VA loans are much more flexible and lenient for your credit score and credit history, making them more accessible. When you opt for a VA construction loan over a conventional one, you will be offered more competitive interest rates and not be required to make monthly PMI payments.

VA loans also give you the ability to refinance to a lower rate without having to re-qualify for the loan, a process known as a VA Streamline Refinance, or IRRRL. Getting started on your VA Loan is easy; simply contact a VA Loan Specialist at 1-855-824-6727.

0% Down Payment

With a VA construction loan, you do not need money saved up to make a down payment. VA lenders can finance 100% of the costs, meaning there is no need to make a down payment.

Suppose you have money to contribute to a down payment. In that case, however, it is recommended that you do opt to make a downpayment, as this will reduce the interest you have to pay on your loan. You will benefit even more from the competitive interest rates offered with a VA construction loan.

Extremely Competitive Interest Rates

VA construction loans offer highly competitive interest rates. The repayment period for a VA construction loan is a maximum of 30 years and 32 days. For this repayment period, you can generally expect to pay between 3 and 6% in interest for this repayment period, depending on the lender you opt for.

No Mortgage Insurance

PMI payments can contribute significantly to your monthly overheads. If you opt for a VA construction loan, you will not be required to invest in private mortgage insurance.

PMI can cost around $150 per month for a $250,000 house, and so you could save a lot of money each month without this cost. You can save this money and stash it in your rainy-day fund or use it for more groceries and meals out each month!

Qualification Standards

There is much more flexibility offered in credit score and credit history with a VA loan than a conventional construction loan.

If you have a blemish in your credit history or a lower credit score, you could still be viable for a VA construction loan. A traditional lender will also require a debt-to-income ratio of 45-50%, but with a VA lender, you will be afforded a much higher one.

Seller Contribution To Closing Costs

You can get financing for the closing costs with a VA loan, which means you will not have to make any hefty upfront payments. The closing costs will be rolled into your existing VA loan. With conventional construction loans, you will be required to fund the closing costs independently.

VA OTC Loan Process

The VA construction loan process can be quite a challenging task to undertake on your own, so we recommend that you enlist the help of an expert to guide you through the process.

Our experts at Security America would be happy to help you get your VA loan process started and guide you through each stage of the VA construction loan process.

Obtain Certificate Of Eligibility

Your certificate of eligibility proves that you meet all of the requirements necessary to qualify for the VA construction loan program. You can obtain your certificate of eligibility by submitting your statement of service, which should detail the length of your service and your service status.

You may be required to provide additional information based on your service status and the organization you were enrolled in. You can apply for a certificate of eligibility online or via mail.

Or, you can apply for a certificate of eligibility through your lender. At Security America, we would be happy to help you get your certificate of eligibility and get the ball rolling with your application process!

Choose VA Lender

You must choose a VA lender that will provide the funds for your VA loan. You can find a VA lender on the Department of Veterans Affairs. At Security America, we offer a wide range of VA loans to suit your needs and take pride in providing veterans the chance to build and purchase their own homes without a down payment.

Find VA-Approved Builder

Your builder must be VA approved if you intend to fund the project using a VA construction loan. You can find a VA-approved builder using this government website link for the Department of Veterans Affairs. If you already have a builder in mind, you can get them VA approved for your VA construction process; simply ask your lender to help you.

Security America has a VA-approved builder map to help you quickly find a builder in your area. If you find a VA-approved builder on the government website, be sure to check with us, as they may not be approved with Security America.

Complete Property Appraisal

To get your VA loan process underway, you must have a property appraisal performed, which will give the lender an idea of the home’s value once it has been constructed and the construction process requirements. We suggest that you use an appraisal expert familiar with VA guidelines to ensure your property appraisal goes smoothly. You will also be required to submit your construction plans and blueprints.


Once you have completed the loan application process, you should close within 60 days (sometimes, this may take longer). Once you have closed on your loan, you will receive your funds in installments in line with your construction plans, and you are free to begin construction on your special home!

Final Inspection

Once construction is complete, you will need to have the home inspected to meet all VA requirements and standards. Once your home has passed the inspection process, you will be free to plan your move-in date and start making your loan repayments.

ZERO Down Payment On Your VA Construction Loan: Build Your Dream Home Today!

VA construction loans are paid by private lenders and guaranteed by the US department of veterans affairs and so generally do not require a down payment.

Security America’s VA construction loans help veterans build the home of their dreams without a down payment. You can include 100% of the cost of building the home and purchasing the land in the VA construction loan.

You should choose Security America for your VA construction loan because of our relaxed credit standards and easy qualifying for VA loans. If you choose Security America for your VA loan, our team will always be on hand to support you and guide you through the VA loan process.

VA One Time Close Construction Loan Lenders

You can find a VA construction loan lender using the VA lenders resources on the Department For Veterans Affairs website, which shows all lenders offering VA loans. Or you can choose Security America for your VA construction loan.

We offer competitive interest rates on 0 down payment loans, and our team is here to help you with a personalized and hands-on approach to get you into a home you love. Our relaxed credit standards make VA loans accessible and easy to qualify for.

Easy Application Process- Get Your Loan With Security America Mortgage!

The application process is easy at Security America Mortgage. Our team of experts is here to help! We understand how important it is to care for those who have served our country and make the process of constructing your dream home as straightforward as possible.


The interest rates on VA construction loans are highly competitive compared to traditional construction loans. In addition to this, you can avoid paying private mortgage insurance with a VA construction loan.
The process of obtaining a VA construction loan is pretty tricky. Rather than take on the process by yourself, you should enlist the help of a VA loan lender to help you through the application process. At Security America, our team of experts is willing to guide you through every step of the application process.
Mortgage payments on a VA construction loan have more competitive interest rates. You are not required to make repayments on your VA construction loan until the construction process is complete. Once the construction phase is complete, you do not have to re-qualify for a permanent loan.
A statement of service is a letter from your commanding officer detailing the status of your service and how long you have served. The statement of service is required to prove your eligibility for a VA loan and receive your certificate of eligibility.
With a VA construction loan, you can build a home for yourself and your family. VA construction loans are designed to help supply housing to veterans and combat the low housing supply. Unfortunately, VA construction loans aren’t suitable for building million-dollar mansions.


All members of our team here at Security America Mortgage are experts when it comes to helping veterans obtain VA Home Loans. If you’re ready to get started complete the simple form above and one of our mortgage specialists will contact you shortly. We look forward to working with you!

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