Utilize a VA loan to build a house with a 1 time close construction loan is a great idea

Experienced, Proficient VA Construction Loan Experts Supporting Veterans 

Security America Mortgage is an experienced and proficient VA construction loan vendor that takes pride in helping veterans build and buy their dream homes. We thank veterans for their service and offer competitive interest rates on VA loans in Florida. VA loans in Florida are guaranteed by the Department Of Veterans Affairs and so do not require a down payment.

VA Loan to Build a House

You should choose Security America Mortgage for your VA loan because of our wide range of experience in helping many veterans to construct and purchase their dream homes. We offer a personalized service, with experts just a phone call away to take you through each step of the VA loan process. We offer a wide range of services, from VA home loans to VA construction loans, and our quality service will help you get the VA loan that’s right for you.

What Is VA Loan?

A VA loan is a mortgage loan offered by a United States Department Of Veterans Affairs program. VA loans are available to active service members, national guard members, veterans, and military spouses to help them purchase or build homes without a down payment or private mortgage insurance and competitive interest rates.

VA loans can be used to purchase a home, build a home, or fund repairs and maintenance with 100% of the cost financed. VA-approved private lenders offer VA loans. To make VA loans more accessible, applicants are shown more leniency regarding their loan eligibility – regarding their credit score and credit history.

Types Of VA Loans

There are varying types of VA loans designed to cater to the individual needs of veterans and their families, whether they are looking to improve and maintain their current home, build a new home, or purchase a home.

VA Construction Loan

A VA construction loan is designed to help veterans build their own homes and was introduced to solve the limited availability of housing. VA construction loans cover 100% of the fees included in building a house, from the cost of purchasing the land to the cost of constructing the house. VA construction loan repayments do not need to be made until construction is complete.

VA Loan Vs VA Construction Loan

A VA loan covers the purchase of a home, whereas a VA construction loan allows veterans and their families to design and build their own homes. VA construction loans suit the needs of veterans living in areas with a low supply of housing. VA purchase loans are suitable for purchasing a home but do not have the funds for a down payment or a high credit score.

VA Purchase Loan

Lenders offer competitive rates on VA-backed purchase loans that can help you to buy a home. This is beneficial to poor credit scores who cannot get a purchase loan through traditional means. VA purchase loans do not require a down payment either, which helps those who do not have the means to access a conventional mortgage.

Must Follow these House Buying Steps if you are searching for a new home.

Refinancing VA Loan

If you have an existing VA-backed home loan, an interest rate reduction refinancing loan (IRRRL) can help you make your mortgage payments more manageable and more stable. Refinancing lets you replace your current loan with a new one under different terms to reduce your monthly mortgage payment. You must have lived in or currently live in the home backed by the existing VA loan to qualify for a refinancing VA loan.

Energy Efficiency VA Loan

A VA energy efficient mortgage (EEM) allows you to finance home improvements that increase your home’s energy efficiency. You can finance up to $6000 worth of energy-efficient installments in your home using a VA energy efficiency loan, and even more in some cases.

VA Loan To Build A House – What is a VA One-Time Close Construction Loan?

VA construction loans are down payment loans available to help veterans build their own homes. VA construction loans are guaranteed by the Department of Veterans Affairs and sanctioned by private lenders. VA construction loans are available to those who meet the VA loan requirements: veterans, active service members, national guard members, and military spouses (in special circumstances).

VA construction loans are similar to VA home loans; only they cover both purchasing the land and constructing the home. VA construction loans are short-term loans that do not require any upfront costs, as you expect with a VA home loan.

VA construction loans allow you to finance the purchase of land and the costs associated with construction. You can even roll in and finance the closing costs.

A VA construction loan offers veterans the chance to qualify for better mortgage terms, and veterans will not be required to make PMI payments. Private mortgage insurance (PMI) is insurance designed to protect the mortgage lender should the borrower not make a payment and is designed for borrowers who do not have the 20% down payment for a home purchase. PMI payments are added to your existing mortgage payments, principal, interest, property tax, homeowners insurance. You do not need to make these payments with a VA construction loan.

In addition to being exempt from PMI fees, veterans will be exempt from VA funding fees when they opt for a VA construction loan. VA funding fees are

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

It can take between 30 and 60 days to close on a VA construction loan, but it can take longer (up to a year) in some cases. You will not be required to repay your VA construction loan until you have completed construction and financing is available for the closing costs.

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

You can get a VA loan to build a home if you do not own land. The cost of purchasing land can be included in your loan, along with construction costs.

VA Construction Loan Guidelines And Requirements

There are specific guidelines and requirements for qualifying for a VA construction loan. To be eligible for a VA construction loan, you will need:

  • A certificate of eligibility – this can be obtained by submitting your statement of service. Your VA lender can help you with this process.
  • A low DTI ratio (40-55%) – your debt to income ratio (DTI ratio) gives lenders an idea of your financial position and how well-equipped you are to take on additional debt.
  • A 550+ FICO score – a FICO score is another type of credit score that lenders can use to understand your viability for a loan.
  • A property appraisal – you must perform an appraisal to understand the value of the home you are building.
  • Construction plans and blueprints – you will need to provide construction plans, and blueprints agreed on with a VA-approved builder.
  • You must have a minimum FICO score of 620 for all qualifying borrowers.
  • A minimum of 2 credit scores of 620-659 are required for all qualifying borrowers. If three scores are given, the lender will use the middle score. If two scores are given, the lender will use the lower score.
  • A minimum of one credit score above 660 is required for all qualifying borrowers.

What Is A Statement of Service?

A statement of service is a letter provided by your commanding officer detailing your service. The statement of service should describe your current service status and how long you served. A statement of service is required to gain a certificate of eligibility needed to get your VA loan.

VA Loan Credit Requirements

In most cases, VA lenders only take the past 12 months of your credit history into account. However, exceptions may be made if you have filed for bankruptcy or if you’ve had tax liens or collections. You will generally be required to have a credit score of above 620 to qualify for a VA loan.

VA Construction Loan Benefits

There are many benefits to choosing a VA construction loan over a conventional one.

Why Choose a VA Construction Loan Over A Conventional One?

VA construction loans have many benefits not offered by traditional construction loans, especially for first-time buyers who do not have a down payment. Unlike conventional loans, VA home loans do not have private mortgage insurance requirements.

Additionally, we can offer you more competitive interest rates than a conventional construction loan. Because there are certain fees that borrowers cannot be charged, you will not be subject to closing costs with a VA construction loan.

With VA construction loans, you do not have to requalify for the loan to refinance at a lower rate when you use VA streamline finance or IRRRL. Getting started on your VA loan is easy; simply contact a loan specialist on 1-855-824-6727.

0% Down Payment

Most veterans qualify for a 0% down payment on a VA construction loan. Of course, to reduce the interest on your loan, you can opt to place a downpayment on your VA construction loan.

Extremely Competitive Interest Rates

VA construction loans offer highly competitive interest rates compared to traditional construction loans. Our interest rates are extremely competitive compared with other VA construction loan lenders.

No Mortgage Insurance

You will not be subject to PMI payments when you opt for a VA loan. Private mortgage payments can increase your monthly overheads and reduce your savings potential. For a $250,000 house, you would pay around $150 per month in private mortgage insurance. With our VA construction loan, you can save more money for your rainy-day fund.

Qualification Standards

When you apply for a VA construction loan, we can offer you lower credit score qualification standards to ensure our loans are accessible to a broader range of veterans. If you cannot qualify for a traditional VA construction loan, we are here to help!

Seller Contribution To Closing Costs

When you choose a VA construction loan, you can access financing for the closing costs as part of your overall loan. At Security America, we can help you finance 100% of the costs of building your own home!

VA Construction Loan Process

The VA construction loan process can be pretty tricky – luckily, our experts at Security America are here to lend a helping hand!

Obtain Certificate Of Eligibility

Before you begin your VA construction loan process, you must first obtain a certificate of eligibility. To do this, you must first gather the necessary information to prove you are eligible for a VA loan. You may need to provide your DD214, and a statement of service from your commanding officer. Your VA loan lender can help you to apply for a certificate of eligibility, or you can apply online or via mail.

Choose VA Lender

Once you have received your certificate of eligibility, you will need to choose a VA-approved lender to handle your loan process. At Security America, we can offer you competitive interest rates and an experienced team that is happy to help you through every stage of your VA loan application process.

Find VA-Approved Builder

To begin construction on your home, you will need to enlist the services of a VA-approved builder. You can find a VA-approved builder using our VA-approved builders map. Contact a builder and let them know about your project and the dates in mind.

If you already have your heart set on a builder, but they are not VA approved, don’t worry. Security America has experience helping builders gain a VA-ID, and we would be happy to help you approve the builder of your choosing.

To determine if a builder you’re considering is VA-approved, you can use this link to enter their details and verify their approval. Even if a builder is VA-approved, you must check with us to see if they are approved with Security America.

Complete Property Appraisal

Before you begin construction, you must complete a property appraisal to present to your lender. Your property appraisal evaluates your construction plans in line with VA loan guidelines. For this reason, it’s best to choose an appraisal expert with extensive knowledge of VA loan guidelines.


Once we have approved your plans, you can close the loan and begin construction. Closing on your VA loan can take up to 60 days and longer in some instances. After closing, you will receive your funds, but we will grant the loan in installments in line with your construction timeline and plans.

Final Inspection

Once the construction process is complete, you will need to perform an official VA home inspection. Once your home passes the VA inspection, the loan becomes permanent. You can then make plans to move into your new home and start making your loan repayments.


Take a look at some of these testimonials from the valued customers we have helped to obtain loans for their new homes!

‘I closed on my dream home December 2019 with the help of Security America Mortgage. For all my veterans out there, I highly recommend Security America Mortgage and the loan officer I worked with, Edward. I’m sure the others are great as well. 5 stars all the way around, also want to shout out Nadia as well, tremendous. ‘ – Delton Edwards

‘Great company. Really work hard to make the process smooth and easy. Very knowledgeable and terrific at offering a host of options from regular mortgages to VA one-time-close construction loans. Rates are super competitive.’ – Jim Blum

‘I had such a great experience with Security America Mortgage. They listened to all of my concerns, answered my question and overall delivered a top notch customer experience. They are the only mortgage company I would ever recommend.’ – Mallory Thompson


Here are some of the questions we get asked frequently about our VA home loan process.

What Kind of House Can I Build With a VA Construction Loan?

With a VA construction loan, you can build a home for you 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.

What Are The Interest Rates On VA Construction Loans?

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.

VA Construction Loan Vs. Construction Loan

VA construction loans are more accessible than traditional construction loans, as there are more lenient standards for your credit rating. In addition to this, you are not obligated to make a downpayment with a VA construction loan, which makes it easier for those without the funds for a downpayment to build their own home.

How Hard Is It To Get 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

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.

What Is A Statement Of Service?

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.

Why Is My Local Bank Discouraging Me From Using A VA Loan?

Many local banks and credit unions are not approved to offer VA loans. You should check if your bank is authorized to issue VA loans. VA loans are often the best options for veterans that need a loan for 100% of the purchase price and do not possess the funds for a down payment.

For more in-depth knowledge, Visit our VA Loan Terms Glossary.

Security America Mortgage, Inc

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.

Contact Us Today! Call toll-free: (855) 701-2816


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