Updated November 13, 2026. Security America Mortgage, Inc. is not affiliated with Veterans United Home Loans. Veterans United is a trademark of its owner. Statements about Veterans United below quote their published VA construction loan guide as it appeared on November 13, 2026.
Quick Answer
Veterans United is one of the largest VA lenders in the country, but its own VA construction loan guide says: “Many lenders, including Veterans United, don’t fund the actual construction of the house.” The guide says Veterans United can refinance a construction loan into a permanent VA loan after construction is complete.
If you want to build a home with your VA benefit in one loan and one closing, you need a lender that offers the VA one-time close construction loan. Security America Mortgage does.
What “Construction Loan First, VA Refinance Later” Means for You
When a VA lender does not finance construction, the usual path has two separate loans:
- A short-term construction loan from a bank or builder, which often requires a down payment and interest payments while the home is built
- A second closing after the home is finished, when that construction loan is refinanced into a VA loan
- Two sets of closing costs, two approvals, and the risk that rates, your credit or your income change before the second closing
How the VA One-Time Close Construction Loan Works at Security America Mortgage
- One application and one closing for land, construction and your permanent VA mortgage
- You can finance the interest-only payments during the build, so you make no out-of-pocket payments while your home is built, or you can pay them as you go
- Financing up to 100% of the lower of total project cost or appraised value for eligible borrowers with full entitlement
- Already own your land? It closes as a refinance, any lot loan is paid off, and land equity (based on the appraiser’s opinion of site value) can lower your VA funding fee
- Site-built, modular, manufactured and barndominium homes; a maximum build period of 11 months
- Your builder and project are reviewed and approved, and draws and inspections are managed through the build
- 620 minimum credit score; every file must be approved through automated underwriting, and a higher score usually improves your chance of approval
- Available in Alabama, Arkansas, California, Florida, Georgia, Illinois, Maryland, Pennsylvania, Tennessee and Texas
We have closed VA one-time close construction loans in every state we serve. See how to choose a VA construction loan lender and estimate your VA construction loan.
What Our Senior Loan Officer Tells Veterans
Jason Noble has personally closed hundreds of VA one-time close construction loans, most of them in Texas. Here is what he tells veterans who were told to get a bank construction loan first and refinance into a VA loan later:
That advice is only due to a lack of education and a lack of product offering. The obvious benefit of a one-time close is that you only close once, so you avoid a second set of closing costs, which cost thousands of dollars. You do not have to requalify or get a second appraisal, which can be risky in today’s market. The one-time close offers security: fixed prices, knowing your cost before you commit, knowing the cost cannot change during the build, and knowing your financing is 100% complete when you close.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
On payments during the build:
The VA construction loan is the only construction loan that gives the homeowner the option of financing their interest-only payments or paying them during the build.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
On a build that runs late:
If the builder does not complete the build on time, the builder will need to request an extension to the timeline. If the veteran financed their interest-only payments and the payment reserve runs out, the veteran would then be responsible for making interest-only payments until the home is complete.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
On land you already own:
Lot value has to be determined on the appraisal. The appraiser must complete the opinion of site value on the appraisal report. If the opinion of site value is confirmed, that amount can be used to lower the VA funding fee by lowering the loan-to-value.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
The risk veterans don’t see in “build with a bank loan, refinance into VA later”:
They don’t realize the risk. When you do a two-time close, you are requalifying for a second loan. That means new underwriting, a new credit review, a new appraisal and a second set of closing costs.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
What most often delays a VA construction closing, and how to avoid it:
The most common delay is the builder’s response to document requests or procedural tasks. Avoid this by staying on top of your builder and making sure you are following up on requests with your loan officer.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
The most common mistake veterans make choosing a VA construction lender:
Veterans have been conditioned to shop for financing based on interest rates, and when purchasing an existing home that can be a good way to start. But when you are building a home with a construction loan, there is much more nuance. The interest rate during the build is used only to calculate the interest during the build period, and many veterans mistake it for their permanent rate. So ask not only about rates but how the interest rate at loan modification works. Ask what the total cost of borrowing is: how much origination, discount and other fees the lender charges. Do not shop by rate alone. Request a full breakdown of the loan numbers so you know where every penny is going. If the lender cannot or will not do this, be very cautious.
Jason Noble, COO and Senior Loan Officer, Security America Mortgage, NMLS #352672
Questions to Ask Any VA Lender Before You Build
Jason’s one question every veteran should ask a lender: “Explain how a VA construction loan works in detail.” A lender that closes these loans can walk you through land, builder approval, draws, inspections, the build period and the conversion to your permanent loan. If they can’t, keep looking. Other questions to ask:
- Do you close the land, construction and permanent VA loan in one closing?
- Can I finance the interest-only payments during construction, and what happens if the build runs late?
- How does the interest rate work when the loan is modified to permanent, and what is my total cost of borrowing, including origination and discount fees?
- Who approves my builder, and who manages draws and inspections?
- How long is the build period, and what happens if it runs late?
- What credit score do you actually approve VA construction loans at?
Building vs. Buying New Construction
Buying a home that a builder has already finished is a regular VA purchase loan, and most VA lenders, including large national lenders, can do that. Building a home to your plans, on land you own or are buying, is what requires a VA construction loan.
Frequently Asked Questions
Does Veterans United offer VA construction loans?
According to Veterans United’s own VA construction loan guide, “Many lenders, including Veterans United, don’t fund the actual construction of the house.” Their guide says they can refinance a construction loan into a permanent VA loan after construction is complete.
What is a VA one-time close construction loan?
It is one VA loan that covers the land (if you are buying it), the construction and your permanent VA mortgage, with a single closing before the build starts.
Can I buy a newly built home with a regular VA loan?
Yes. Buying a home a builder has already finished is a regular VA purchase loan. Building a home to your plans on your own lot is what requires a VA construction loan.
What credit score do I need for a VA construction loan with Security America Mortgage?
620 minimum, and every file must be approved through automated underwriting. A higher score usually improves your chance of approval.
What most often delays a VA construction loan closing?
Per our senior loan officer Jason Noble, the most common delay is the builder’s response to document requests or procedural tasks. Stay on top of your builder and follow up on every request with your loan officer.
Ready to build with your VA benefit? Call (855) 701-2816 or start your VA construction loan.
Security America Mortgage, Inc. NMLS #355253. Equal Housing Opportunity. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or Veterans United Home Loans. All loans subject to credit approval, VA eligibility, appraisal and underwriting.
