Can you use a VA loan to build on land you own? Of course you can.

It doesn’t cost a penny to talk….so call me right now and I will answer your questions!

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If you’ve got land, can you use your VA loan to build on it?

The answer is: of course you can.

Now that you know this is a possibility, there are a few things you need to consider before you can make it happen. The first step is to have your home designed.

After you’ve met with an architect to do this, you’ll need to generate the blueprints and specifications.

The next step is to determine what costs will be associated with this process. That cost includes the price of building the home itself, site preparation, and other factors as well.

All of this information that you’ve gathered until this point will then need to be presented to an appraiser. Requesting a VA construction appraisal is different from the normal appraisal process because in this case, the appraiser has no house to look at.


Instead, the appraiser will visit and photograph the site, look at the plans for your home, and find comparable properties in the area.

Within a couple of weeks, the appraiser will determine an approximation of the home’s value upon completion. Having this value from the start is a great way to prevent any unsavory surprises down the road.

After this, you’re finally ready to get a construction loan. If you happen to owe money on the land, the first draw of the construction loan will pay that cost off, as well.

At various points throughout the process, the builder will take draws—with the final draw coming once the house is completed. It is at this point, during the final phase of construction, that your VA loan will be put together.

The funds from this 30-year VA loan will pay off the construction loan. It’s really that simple.

If you have any other questions or would like more information, remember that it costs nothing to talk. Feel free to give me a call or send me an email. I look forward to hearing from you soon.