Question 1

Who is eligible for a VA home loan?

Accepted Answer

Active-duty service members, veterans, eligible National Guard and Reserve members, and qualifying surviving spouses can use the VA home loan benefit. Generally you need a minimum length of service — commonly 90 days of active duty during wartime, 181 days during peacetime, or six years in the Guard/Reserves. A Certificate of Eligibility (COE) from the VA confirms your entitlement.

Question 2

What is a Certificate of Eligibility and how do I get one?

Accepted Answer

The COE is the document that proves to a lender you meet the VA's service requirements and shows your available entitlement. Legacy Custom Builders and our lender partners can pull your COE for you in minutes using your DD-214 or service information — there is no need to navigate the VA.gov portal on your own.

Question 3

Can I use my VA loan benefit more than once?

Accepted Answer

Yes. VA entitlement is a lifetime benefit you can reuse. If you have paid off a previous VA loan and sold or no longer own the home, your full entitlement is restored. You may also have remaining entitlement available for a second use, and you can restore entitlement one time without selling if you refinance into a non-VA loan.

Question 4

Do I have to be a first-time homebuyer?

Accepted Answer

No. The VA loan program has no first-time-buyer requirement. Many of our clients already own a home or have used their VA benefit before — the key is having remaining entitlement and meeting the lender's credit and income standards.

Question 5

Can I use a VA loan to build a custom home from scratch?

Accepted Answer

Absolutely — that is the whole point of the VA One-Time Close construction loan. It finances land, construction, and your permanent mortgage in a single loan, so you can build a brand-new custom home with zero down payment rather than buying an existing house.

Question 6

Is it really zero down payment?

Accepted Answer

Yes. The VA One-Time Close construction loan allows 100% financing — no down payment is required for loans within the VA county loan limit. You can finance land, the construction, and the permanent mortgage together with nothing down. Your earnest money and option fees are credited back at closing.

Question 7

What is a one-time close construction loan?

Accepted Answer

A one-time close (also called a single-close or construction-to-perm) loan means you sign one set of loan documents up front that covers the construction phase and converts to your permanent mortgage when the home is finished. You avoid a second credit pull, a second appraisal, and a second set of closing costs — unlike a traditional two-close construction loan.

Question 8

Do I pay two sets of closing costs?

Accepted Answer

No. Because there is only one closing, you pay closing costs once. With a traditional construction loan you would close on the construction loan, then close again on a permanent mortgage after the build — doubling many fees. The VA One-Time Close removes that second closing entirely.

Question 9

What do I pay during construction?

Accepted Answer

During the build you make interest-only payments on the funds as they are drawn — not on the full loan amount. This keeps your monthly cost low while the home is being built. Once construction is complete, the loan converts to your permanent mortgage with full principal-and-interest payments.

Question 10

Do I have to re-qualify after the home is built?

Accepted Answer

No. That is a major advantage of the one-time close. Your loan converts to permanent financing automatically when construction is finished — no new application, no new credit check, and no new appraisal. You already qualified at the start.

Question 11

Is there a loan limit on the VA One-Time Close?

Accepted Answer

The VA no longer caps the loan amount for borrowers with full entitlement; instead the VA guarantees up to 25% of the conforming county loan limit with no down payment required. For amounts above the county limit, a down payment may apply on the overage. We'll help you confirm your entitlement and the limit for your Central Texas county.

Question 12

What is the VA funding fee?

Accepted Answer

The VA funding fee is a one-time charge most borrowers pay to help keep the program self-sustaining. It is a percentage of the loan amount, can be financed into the loan (so you do not pay it out of pocket), and is reduced for a down payment of 5% or more. Veterans receiving VA disability compensation are exempt from the funding fee entirely.

Question 13

Is mortgage insurance required?

Accepted Answer

No. VA loans do not require monthly mortgage insurance (PMI), which is typically required on conventional loans with less than 20% down. Over the life of the loan this can save tens of thousands of dollars — one of the biggest financial advantages of the VA benefit.

Question 14

What credit score do I need?

Accepted Answer

The VA itself does not set a minimum credit score, but our lenders typically look for around a 620 FICO for a construction loan. Because the VA guarantee reduces the lender's risk, credit requirements are more flexible than conventional financing. We review the full picture — credit, income, and entitlement — together.

Question 15

What income and debt ratio do I need?

Accepted Answer

Lenders evaluate your residual income (money left after major expenses) and debt-to-income ratio. The VA prefers a DTI of 41% or below but makes case-by-case exceptions with strong residual income. Construction loans also consider the appraised future value of the completed home.

Question 16

Can I roll closing costs into the loan?

Accepted Answer

Some closing costs can be financed, and the VA funding fee is added to the loan balance by default. Seller concessions (where the seller or builder credits you toward costs) and lender credits can further reduce out-of-pocket expense. We walk you through every line item before closing.

Question 17

Do I need to own land before I start?

Accepted Answer

No. If you do not yet have land, Lisa Copeland Real Estate will help you find the right lot in Central Texas, and the VA One-Time Close can finance the land purchase and construction together in the same loan. If you already own land, its equity can count toward your down payment or reduce what you need to finance.

Question 18

Can I customize the floor plan and finishes?

Accepted Answer

Yes. A VA construction loan lets you build a true custom home, not a spec house. You work with our design team on layout, elevation, and every finish — subject to the appraised value and your approved budget. Your fixed spec and firm price are locked before construction begins.

Question 19

What if the home appraises for less than the build cost?

Accepted Answer

The VA appraisal is based on the completed home's value. If it comes in low, options include renegotiating costs, adjusting finishes, making up the difference, or in some cases a VA reconsideration of value. We price builds to appraise and address any gap before construction starts, so there are no surprises mid-build.

Question 20

How long does a build take?

Accepted Answer

A typical custom home takes roughly 8–12 months from breaking ground to move-in, depending on size, site work, and weather. Because the one-time close funds construction in draws tied to milestones, the build schedule and your loan draws stay aligned. You receive weekly updates throughout.

Question 21

Is the home warrantied?

Accepted Answer

Yes. Legacy Custom Builders stands behind every home with a builder warranty covering workmanship and structural elements. Combined with the VA's minimum property requirements — which ensure the home is safe, sound, and sanitary — you get a home built to last and backed in writing.

VA benefit & zero-down questions, answered.

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