VA New Construction Loan Calculator
- By Jim Blackburn
- on
- Tags: Calculators, New Construction, Spec Homes
Build Your Dream Home with $0 Down Using Your VA Loan Benefits
If you’re a veteran or active-duty service member considering building a home, the VA New Construction Loan offers a powerful solution. This program allows you to finance land, construction, soft costs, and even interest reserves—often with zero down. Use this calculator example to estimate your monthly mortgage payment and total cash needed to close.
Loan Scenario Example
| Input | Amount |
|---|---|
| Land Cost | $30,000 |
| Soft Costs (permits, design, fees) | $30,000 |
| Hard Costs (labor + materials) | $240,000 |
| After Repair Value (ARV) | $400,000 |
| Down Payment | 0% |
| Loan Term | 30 Years |
| Estimated Interest Rate (permanent loan) | 6.99% |
| Annual Insurance | $2,400 |
| Annual Taxes | $3,600 |
| Monthly HOA | $0 |
| First-Time Use | Yes |
| Disabled Veteran | Yes |
Summary of Financing & Expenses
| Description | Value |
|---|---|
| Total Property Costs (land + hard + soft + 10% reserve) | $324,000 |
| 12-Month Interest Reserve (estimated at +3%) | $16,184 |
| Total Financeable Costs (incl. 4% est. closing) | $353,791 |
| Maximum VA Loan Allowed | $353,791 |
| VA Funding Fee | $7,607 |
| VA Funding Fee Waived (if disabled) | -$7,607 |
| Final Loan Amount | $353,791 |
Monthly Housing Costs (Post-Construction)
| Component | Monthly |
|---|---|
| Principal & Interest | $2,351 |
| Homeowners Insurance | $200 |
| Property Taxes | $300 |
| Property Tax Discount (if disabled) | -$300 |
| HOA (if applicable) | $0 |
| Total Estimated Housing Expense | $2,551 |
Note: During construction, payments are interest-only and can be prepaid through reserves included in your loan.
Estimated Cash to Close
| Scenario | Cash Out of Pocket |
|---|---|
| Without Builder Credit | $7,076 |
| With Builder Credit (2%) | $0 |
This estimate includes closing costs that cannot be rolled into the loan (e.g., title, appraisal, prepaid insurance). Many builders offer seller credits to help cover these.
Required Documents for 100% VA New Construction Loan
To qualify for full financing, these documents must be submitted:
- HUD-92541: Builder Certification of Plans & Specs
- HUD-92544: One-Year Warranty of Completion
- NPMA-99A & 99B: Termite Protection and Treatment Records
- Local Health Approvals: For well or septic (if applicable)
- Permits or Early Start Letter: From local jurisdiction or VA
Minimum Monthly Income to Qualify
| DTI-Based Income Target | $5,103/month |
VA guidelines allow DTI ratios over 41% with strong compensating factors such as high residual income, excellent credit, or significant savings. Our experts will help determine your qualification.
Can You Use VA Again After Building?
Yes. Once this construction loan is complete, you may still be eligible to:
- Use remaining entitlement
- Apply for a one-time restoration of entitlement
- Restore entitlement after refinancing to a non-VA loan
You must intend to occupy the new home as your primary residence.
Ready to Build? Start Your VA New Construction Journey Today
You’ve done the math. Now let us help you build the home. Our VA construction loan experts will tailor a financing plan that fits your vision and maximizes your benefits.
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
- 💡 Takes just 5 minutes
- 📊 Tailored results based on your answers
- 🔒 No credit check required
Need a Pre-Approval Letter—Fast?
Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
- 💡 Only 2 minutes to complete
- 📊 Quick turnaround on pre-approval
- 🔒 No credit score impact
Got a Few Questions First?
Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.
Schedule a CallImportant Disclaimer
This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.
