VA Construction Loan

“One Time Close” VA Construction Loan

We provide flexible loan options for veterans who want to use their VA benefits to build a new home.  Many veterans dream of building their own home, designing just the house they want on a lot they choose (maybe with a little acreage and some vanity longhorns). There’s a perception that you cannot use a VA loan for new construction. And it’s true that historically it has been difficult to build your own home without giving up a lot of the benefits of the VA loan program. However, that is no longer the case!

We are thrilled to be able to offer a VA One-Time Close Construction Loan that allows qualifying veterans to wrap lot purchase and construction into a single permanent mortgage loan under the VA loan program. This program will allow our veterans the opportunity to build their dream home, and still take advantage of all the great financial benefits of the VA home loan program.  With a VA Construction loan you can finance up to 100% of the land purchase and construction costs (or said differently you can get a construction loan with a 0% down payment).

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How Does the VA One-Time Close Construction Loan program work?

You find the land you want to buy, you apply for a loan with us, and we provide a loan to cover the price to purchase the land plus the cost to build a home on your lot. Because we are offering a “one time” closing, you do not need to get a construction loan and a separate permanent loan after you home is complete. We provide one low rate long term fixed rate loan to cover the whole loan process.

Once your loan is approved, loan funds are disbursed to your builder as the home is built and the loan automatically converts into a regular mortgage, with regular monthly principal and interest payments once construction is complete. The interest rate on the loan will be a normal 30 or 15 year fixed rate VA loan.

Why get a VA One-Time Close Construction Loan instead of a traditional construction loan?      

Reason Traditional Construction Loans’s – VA Construction Loan Program
VA Benefits Can Be Used No Yes
Down Payment Required 20% Down  0% Down
One Time Closing No Yes


Please call or email us with other unique or unusual situations related to your loan needs as we can often find a loan product to meet your needs.

Why choose us for a VA Construction loan?

  • Expertise: We specialize in offering VA Construction loans to our customers.
  • Lower Down Payment: You can build your dream home with as little as 0% down.
  • One Time Closing: With our program you close on one loan that covers your construction and automatically converts into a normal VA loan when your construction is complete.
  • Fastest Growing Companies in the State of Texas – We were recently recognized as being one of the fastest growing Aggie owned companies in the state of Texas.  Hurst Lending and our division are the one of the 100 growing company on Texas A&M Aggie 100 list for 2013 and 2012.
  • Strong Positive Customer Feedback – Please see the attached list of positive feedback from our customers on social media sites and message boards.

What is the difference between a VA Construction loan and a traditional Construction loan?

VA loans offer qualifying military veterans and service personnel access to mortgages with no money down, competitive interest rates, and do not require the borrower to pay private mortgage insurance. As a result, veterans may save thousands at closing and hundreds of dollars every month through this program.

With a VA Construction loan you can finance up to 100% of the land purchase and construction costs. Traditional Construction loans often require a 20% or 25% down payment on the land. You then have to get a construction loan (which generally has a higher rate than a traditional conventional fixed rate loan). With our program you lock in one long term fixed rate loan and you do not have to incur additional closing costs associated with getting a construction loan and a separate permanent loan.

Can I use my VA benefits with Hurst Lending’s “VA – One-Time Close – Construction Loan” program?

Yes, our program is a VA program and you may use your VA benefits with our program.

I have never heard about a VA Construction Loan program in the past, why aren’t other lenders offering this program?

Very few lenders offer a program like ours. Most lenders do not want to offer construction loans since these loans have higher risks and they prefer to just offer permanent financing once the construction is complete. Many lenders push their customers toward getting a separate loan for lot purchase and construction, and a permanent mortgage when the home is completed. With this approach, only the permanent mortgage can be completed through the VA loan program, so veterans incur down-payment and closing costs on the initial loans – not to mention the headache of going through the loan process multiple times.

We talk to lots of veterans who have dreamed for years of buying a lot and building their own home, just the way they want it. After all they’ve done for our country, we think they deserve to be able to do that. So we are offering a program to allow veterans to use their VA benefits to construct a new home without needing a down-payment.