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When it comes to shopping VA construction loan lenders, one might find it a daunting task. There is so much misinformation online. When searching VA Construction Loan lenders on Google and Edge, you might have noticed Veterans United taking the top spot. But the big question is, do they actually do a true VA construction loan. Legitimate VA construction loan lenders like Security America Mortgage do a VA one time close construction loan whereas some lenders will tell you to go find construction financing and then seek a permanent VA loan when completed. In this blog I want to be clear what you can expect from VA construction loan lenders like Security America Mortgage, Veterans United, Loan Depot and Rocket Loan.
Many lenders that rank on the first page of Google for VA construction loans do not actually provide a true VA construction loan.
In most cases, these lenders only offer permanent VA financing and require veterans to obtain separate interim construction loans through a bank or credit union. While these lenders may have strong brand recognition and SEO presence, their loan structure often involves two closings, higher costs, and increased complexity for the borrower.
Understanding the difference between a true VA construction loan lender and a lender that only offers permanent VA financing is critical before choosing a provider.
| Lender Type | Construction + Permanent Loan | One-Time Close | Interim Bank Loan Required | VA Construction Expertise |
|---|---|---|---|---|
| Security America Mortgage | ✅ Yes | ✅ Yes | ❌ No | ⭐⭐⭐⭐⭐ |
| Veterans United | ❌ No | ❌ No | ✅ Yes | ⭐⭐⭐ |
| Large National Banks | ❌ No | ❌ No | ✅ Yes | ⭐⭐ |
| Local Community Banks | ❌ No | ❌ No | ✅ Yes | ⭐⭐ |
| Credit Unions | ❌ No | ❌ No | ✅ Yes | ⭐⭐ |
Note: Some lenders listed may offer permanent VA financing only and require separate interim construction loans during the build phase.
A true VA construction loan allows veterans to finance both the construction and permanent mortgage under a single VA-backed loan. Many alternatives require two separate loans, which can increase risk and cost.
| Feature | True VA Construction Loan | Interim Construction Loan + VA Mortgage |
|---|---|---|
| Number of Closings | One | Two |
| VA Backed During Construction | ✅ Yes | ❌ No |
| Interest Rate Changes | ❌ No | ✅ Yes |
| Out-of-Pocket Costs | Lower | Higher |
| Veteran Risk Exposure | Lower | Higher |
Not all VA lenders manage the full loan process. Understanding who funds each phase helps veterans avoid delays and surprises.
| Loan Phase | True VA Construction Loan Lender | Interim Bank + VA Mortgage |
|---|---|---|
| Construction Funding | Same lender | Bank |
| Permanent Mortgage | Same lender | Mortgage company |
| Draw Management | Same lender | Bank |
| VA Compliance | Throughout process | Only after construction |
| Myth | Reality |
|---|---|
| All VA lenders offer construction loans | Most only offer permanent VA financing |
| VA construction loans require two closings | True VA construction loans require one |
| Veterans must secure their own construction financing | Not with a true VA construction lender |
| Large lenders always offer more VA options | Specialized lenders often offer better solutions |
VA construction loan availability can vary by lender and state licensing. If you are located in a state where Security America Mortgage is not currently licensed, the following lenders may offer alternative VA financing options:
Veterans United VA Loan Program
Other regionally licensed VA lenders
These lenders may offer permanent VA financing but may require separate interim construction loans.
No. Most VA lenders only offer permanent VA financing and require separate interim construction loans during the build phase.
Veterans United typically offers permanent VA loans and may require veterans to obtain separate construction financing through a bank.
True VA construction loan combines construction financing and the permanent mortgage into one VA-backed loan with a single closing.
No. True VA construction loans require only one closing. Two closings usually indicate interim financing.
Availability depends on lender licensing, VA guidelines, and builder approval requirements.
VA approval alone does not indicate construction lending experience. VA construction loans involve coordination between the lender, builder, and VA guidelines that differ significantly from standard VA loans. Lenders with direct VA construction experience are better equipped to manage these complexities.
Some lenders advertise VA construction loans but rarely fund them. Veterans should look beyond marketing claims and confirm that a lender regularly closes VA construction loans rather than offering them on a limited basis.
Many Veterans are wondering the answer to that question so I’m writing this blog to set the record straight. The answer is emphatically NO. You might not come to that conclusion if you’re just searching around on the internet. In this age of misinformation, you might thing some of the VA construction loan lenders on the first page of web browsers are the best.
I spent some time trying to figure out how both Veterans United and Rocket loan are on the first page of Google as VA construction loan lenders providing a VA Construction loan. I scoped both of their websites out and didn’t see anywhere on there where I or anyone else could apply for a VA construction loan. So, I asked myself why do they have so much content about a product they don’t offer. The most logical explanation that I could come up with is that they hope to convert you over to a purchase of a new, existing home or provide permanent financing when your home is completed.
According to senior loan officer, Jason Noble, who specializes in the VA one-time close construction loan; what makes Security America Mortgage the best VA construction loan lender is the fact that it’s a smaller company with less overhead. He goes on to say “when competing with companies like Loan Depot it’s easy to beat them because they have so much more expenses than a small family-oriented company like Security America Mortgage.
VA construction loan pricing varies based on how lenders evaluate construction risk. Lenders without dedicated construction programs may price loans more conservatively, while experienced construction lenders often offer more consistent pricing.
An advertised rate does not always reflect the full lending experience. Veterans should consider whether the lender has the systems and experience required to support a construction loan through completion.
Rate comparisons are most meaningful when lenders are offering similar loan structures and have comparable experience. Pricing should be evaluated alongside lender capability and reliability.
If you’re a Veteran or civilian building a home then you are probably aware that build times can vary based on the type of home you’re building, country restrictions, qualifications, builder availability, etc. Since building a home can range from a few months to several months then it means your guaranteed fixed rate is protected in the future. To do so means risk is built into your interest rate. For example, if you’re buying a home and lock your rate for 30 days then obviously that rate is going to be better than if you lock the rate for 60 days, 180 days etc. To reduce interest rate volatility, you’re going to pay a higher rate. VA construction loan rates are typically 1 percent higher than VA loan rates for that reason.
VA construction loans are structured differently than completed-home VA loans. The construction phase introduces considerations that do not exist in traditional purchase financing.
Construction lending involves temporary risk during the build phase. Once construction is complete, the loan transitions into long-term VA financing under standard VA guidelines.
Established VA construction lenders use consistent underwriting standards and internal controls to reduce unexpected pricing changes.
If you’re reading this then you’re in the right place. We were one of the mortgage companies to focus on the VA construction loan. It’s actually our specialty and our staff is trained to process one time close construction loans like the VA one time close construction loan, FHA one time close construction, USDA one time close construction loan and conventional one time close construction. You can easily see our google reviews and notice that we have many Veterans who were very happy with their newly built home and the VA construction loan process with us.
Veterans should ask how many VA construction loans a lender has closed, whether true one-time close financing is offered, and how construction administration is handled.
Red flags include unclear answers about construction experience, outsourced construction oversight, or limited geographic availability.
VA construction loan specialists focus exclusively on this niche and maintain the infrastructure required to support construction lending.
Security America Mortgage is founded by me, Garrett Puckett, a 5th generation Texan. Serving Veterans who want to buy or build a house with va loan is my passion. We are headquartered in Texas and we serve Veterans in many other states. Texas is a great place to build a home because Texas is a great state. Not to mention, it has one of the highest Veteran populations, top state economy, no state income tax, job opportunities and much more. A VA construction loan Texas can be a great way to build the home of your dreams. We are so grateful for our military service members and we want to show that gratitude by helping you get a home built in Texas!
VA construction loan availability differs by state due to builder participation, regulatory requirements, and lender approval scope.
Lenders with strong builder relationships across regions can help reduce delays and improve coordination.
Nationwide VA construction lenders offer greater flexibility than state-limited programs.
Security America Mortgage is one of the leading VA Home Loan Lenders in the nation; We are not a government agency. We pride ourselves on providing excellent customer service to ensure that each Veteran we serve ends up living happily ever after in the home of their dreams. This is a private website that is not affiliated with the U.S. government, U.S. Armed Forces, or Department of Veteran Affairs. U.S. government agencies have not reviewed this information. This site is not connected with any government agency.
Security America Mortgage maintains a dedicated focus on VA construction lending for veterans.
Nationwide lending capabilities allow consistent VA construction support across multiple states.
Veterans trust Security America Mortgage for its experience, transparency, and specialization.
Contact Us Today! Call toll-free: (855) 701-2816