Do you want to build your dream house? So if you are an active-duty service member or an experienced person of the United States Armed Forces, you may not understand that the Veterans Administration (VA) offers construction loans to counterbalance the expenditure of turning that home in your head into a reality. However, Obtaining a VA construction loan includes several steps like purchasing land, finding short-term construction financing, and transferring that loan into a VA-backed mortgage loan. So before making any decision, let’s have a look at the requirements that you need to take help from VA loans.

Qualifications for a VA construction loan

Same as VA loans are planned to obtain an existing home, VA construction loan bears several eligibility criteria that lenders will glance before offering you this exceptional kind of mortgage.

Let’s discuss some of the qualifications you will necessitate for Qualifying for a loan

· Loans are available for veterans, active-duty military or qualified existing partners of members of the Armed Forces. You can confirm your eligibility on the VA’s official website.

· Lenders need a Certificate of Eligibility (COE), a unique form issued by the administration to verify you’re qualified for a VA-backed loan.

· Homes must be constructed by an accredited contractor (building it yourself or with family is usually not permitted).

· Homes must be constructed as the main habitation and taken within 60 days of finishing point (exceptions are prepared for business units built on properties primarily intended for residential use).

· The minimum Credit score must be 620, while some exceptions can be made.

Minimum property requirements for VA construction loan

Although you and your house qualify for a Veterans administration construction loan, you should be ready to jump through several hoops once you initiate construction.

However, the VA does not give any limitations on the overall design of the house. If you are planning to build home with a VA-backed loan that balances your bill, your property needs to fulfill several necessities concerning usage, utilities and many more.


VA loans are projected to facilitate people with accommodation. As a result, it’s no astonishing that the VA construction loan requires the primary use to be housing. They allow up to four units on specific properties, and it depends on the size of your land. According to VA rules, Business units are permissible, offered that they don’t damage the residential nature of the property, or surpass 25% of the gross floor area.

Living space

The dimension of the living space must have a room for living, sleeping, cooking and dining space.


Water, sewer, gas, and electricity must be accessible for the unit. Homes must have a means for harmless sewage disposal, and association to the public sewerage is necessary if it’s possible.

Ultimately when it comes to constructing a home, the VA construction loan is a suitable choice for the prospective homeowners who meet the requirements.

Author's Bio: 

Our goal at Security America Mortgage is to match the best product to the needs of our clients. We are home loan experts on all loan types.