Can Veterans and Active Duty use their VA loan entitlement to build their dream home?
Absolutely. VA may guarantee a loan “for the construction of a home to be owned and occupied by the Veteran ,” including both one-time-close and two-time-close structures. In a one-time close , you close once, fund construction through controlled draws, and the loan modifies to permanent terms at completion. In a two-time close , you use interim financing and later refinance into the permanent VA loan. I'll lay everything out for you step-by-step down below. But don't worry, having these three professionals with VA Construction knowledge on your team to navigate all of this will be extremely helpful!: Realtor , Builder , Mortgage Advisor Benefits Key program guardrails you’ll care about: Loan types: One-time close and two-time close are both permitted. Benefits Appraisal & NOV timing: Appraisals can be ordered “based on plans & specs”; VA issues a Notice of Value (NOV) and later requires a post-construction inspection by the VA appraiser to co...