Same house, two loans. The gap shows up in cash at closing and in every monthly payment after.
If you have the VA benefit and you are building, the comparison is rarely close. Here is where the two programs diverge.
Cash at closing
Conventional construction loans typically want 10% to 20% down on the total project. The VA One-Time Close allows zero down within your entitlement, so land equity or nothing at all can get you to groundbreaking.
Number of closings
Many conventional construction products are two-close: one for construction, one for the permanent mortgage. That means a second appraisal, a second credit pull, and a second set of fees — plus exposure to whatever rates are doing when the house is finished.
Monthly cost
- VA: no mortgage insurance, ever
- Conventional under 20% equity: PMI until you reach the threshold
- VA: capped origination and a list of fees you cannot be charged
Re-qualification risk
With a one-time close you qualify once, up front. In a two-close structure, a job change, a new car loan, or a rate move during construction can complicate the permanent mortgage you were counting on.
Build on your lot with $0 down
Legacy Custom Builders builds VA One-Time Close custom homes across Austin, Georgetown, Salado, Killeen, and the Hill Country.
Check eligibility