VA OTC Construction Loans

Everything You Need to Know About the VA OTC Construction Loan

Building your dream home as a veteran or active-duty service member is more accessible than ever, thanks to the VA One-Time Close (OTC) Construction Loan. Whether you already own land or are starting from scratch, this loan option offers a streamlined path to homeownership—with 0% down payment required.

🛠 What Is a VA OTC Construction Loan?

The VA OTC Construction Loan is a single-close loan that allows eligible borrowers to finance both the construction of a new home and the permanent mortgage all in one transaction. That means one application, one underwriting process, one set of closing costs, and no need to refinance after the home is built.

This is a huge advantage over traditional construction loans, which often require a separate mortgage after construction is complete (known as a “two-time close”).

✅ Key Benefits of the VA OTC Loan

100% Financing – No down payment required
No Monthly Mortgage Insurance
One Closing – Saves time, money, and hassle
Land Can Be Included – Whether you already own the land or are buying it as part of the project
Built for Veterans – Take full advantage of your VA loan benefit

🏡 Who Qualifies?

To qualify for a VA OTC Construction Loan, you must:

Be a veteran, active-duty service member, or eligible surviving spouse
Meet VA eligibility and credit/income guidelines
Work with a approved builder and lender

Bonus: If you already own your land, you may be able to use its equity toward closing costs or reduce your loan amount—another smart financial move.

🔨 How the Process Works

Pre-approval – Get qualified for the total cost of land + construction
Choose a builder – Must be approved and meet experience standards
Finalize plans – House plans, specs, and builder contract are submitted
Close once – The loan funds the build and converts to a permanent VA mortgage
Construction begins – Interest-only payments may apply during the build phase
Move in – Once the home is finished and passes inspections, you’re set!

🧭 Why Go OTC?

If you’re tired of house hunting in a competitive market, building might be your best move. The VA OTC loan gives you control over the design, location, and timeline—all while leveraging your VA benefit.

🚀 Ready to Build?

If you’re a veteran or military family ready to build your forever home, the VA OTC Construction Loan is a powerful, flexible tool that makes it possible. And with 100% financing, it’s never been easier to start from the ground up.

Want to learn more or see if you qualify? Reach out today and let’s talk about your next chapter—built exactly the way you want it.