One loan covers your land, your build, and your permanent mortgage — with no down payment and no second closing. Here is exactly how it works.
Most veterans know the VA home loan can buy an existing house with no money down. Far fewer know the same benefit can build a brand-new custom home. That is the VA One-Time Close construction loan: a single loan that finances the lot, the construction draws, and the permanent mortgage in one closing.
What 'one-time close' actually means
A traditional construction loan closes twice. You close on a short-term construction loan, build the house, then close again on a permanent mortgage — a second appraisal, a second credit pull, and a second stack of closing costs. The VA One-Time Close collapses that into one signing. When the final inspection clears, your loan converts to permanent financing automatically.
What the loan covers
- Land purchase, or the payoff of a lot you already own
- Site work: survey, septic or utility taps, driveway, pad prep
- The full cost of construction, released in scheduled draws
- Permits, builder fees, and contingency reserve
- Your permanent 15- or 30-year VA mortgage
What you pay while the home is being built
During construction you make interest-only payments on the money that has actually been drawn — not on the full loan amount. Early months are small because only site work and foundation have funded. Once the home is complete, principal-and-interest payments begin on the permanent loan.
Zero down, and no mortgage insurance
VA loans allow 100% financing within your county loan limit and carry no monthly mortgage insurance — ever. That single difference often saves a few hundred dollars a month compared to a conventional or FHA construction loan on the same house.
Who qualifies
Active-duty service members, veterans, many Guard and Reserve members, and eligible surviving spouses with remaining VA entitlement. You will need a Certificate of Eligibility, stable income, and a credit profile that meets the lender's overlay — commonly a 620 score or better for construction financing.
The Legacy piece
A one-time close only works with a builder who can hold a fixed contract price and a real schedule, because the loan is underwritten to those documents up front. Legacy Custom Builders builds on that basis across Central Texas — Austin, Georgetown, Salado, Killeen, and the Hill Country — on time and on budget.
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