Can I Use My VA Loan With New Construction?

If you’re thinking about building a home or buying new construction, the VA loan can be a powerful tool but only in certain situations. Yes, the VA loan can be used on new homes.

No, it’s not always simple.

Let’s walk through what works, what doesn’t, and how to make a new build happen without the headaches.

VA Loan Options for New Construction

There are three main ways to use your VA benefit on a new home:

1. Buy a completed spec home from a VA-approved builder
2. Use a VA One-Time Close Construction Loan to build from scratch
3. Buy a new manufactured or modular home on land you own (or are buying)

Each of these comes with different rules—and not every lender offers all three.

Buying a New Home From a Builder (Most Common Option)

If the home is already built or nearly finished, you can use a standard VA purchase loan.

The builder must:

• Be VA-approved
• Provide a 1-year builder warranty
• Allow time for the VA appraisal before closing

This is the cleanest path for VA buyers who want a new home without waiting 6–12 months for construction.

Using a VA Construction Loan to Build a Home

This is the most misunderstood option and also the most underused.VA construction loans:

• Allow you to finance land + build costs + final mortgage in one loan
• Can be $0 down if you qualify
• Require you to work with a builder who meets VA guidelines and a lender that offers this product

Not many lenders do this. I do. But it takes planning, documentation, and patience.

Can You Use VA on Manufactured Homes?

Yes—if the home:

• Is built after 1976
• Is permanently affixed to a foundation
• Is classified as real property
• Includes land (you can’t finance just the home without land)

This can be a great path in rural areas around Hanford, Lemoore, or Coalinga where land and manufactured packages are available.

What Doesn’t Work

• Buying raw land only (unless it’s part of a VA construction loan)
• Using VA on a builder who won’t meet VA warranty or approval requirements
• Trying to finance “custom build” expenses through a standard VA purchase loan

These aren’t bad ideas but they require the right setup and timing. That’s where most deals fall apart.

Bottom Line

The VA loan can work with new construction but it has to be structured correctly. Whether you're looking at a builder neighborhood, a plot of land, or a manufactured home package, I can help figure out the cleanest way to make it happen with your benefit.