Can I use a VA loan to purchase a new construction home?

A question that often comes up is can a buyer purchase a new construction home with their VA loan? The answer is it depends. In Nocatee, Palencia, or most of our new construction communities the answer is yes. Since you aren’t actually closing on the home until it’s completed the process isn’t much different than purchasing a resale. If you want to purchase a vacant lot and build a custom home then the answer is technically no but it can be done. How you ask? A very select few lenders offer what’s called a construction to perm (short for permanent) loan. The way it works is we find the lot you want to build on. After we negotiate with the owner or developer we go under contract for the lot. During the due diligence period we bring in a custom home builder and design your new home. After closing on the vacant lot the builder starts building their home on your land. Once your home is completed the loan is converted from a construction loan to a VA home loan.

In the Jacksonville Florida area you typically see these types of custom built homes close to the beach or in more rural settings. I see them a lot in Vilano Beach, St. Augustine, Palencia and more rural areas of St. Johns County.

My name is Andrew Michael and I work with eXp Realty in Ponte Vedra. For more information on how to build your new home in NE Florida give me a call/text at 904-460-8501. You can also email me at


Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>