Yes. Eligible borrowers can use VA backed financing to purchase or build a qualifying new home. For veterans and service members considering new construction, that means resale is not the only path to homeownership.
Quick answer: VA backed purchase loans can be used to build a new home, and VA financing may also be used to purchase eligible newly built homes. The borrower, property, appraisal, lender, and loan must meet applicable VA requirements.
How Does a VA Loan Work With New Construction?
“VA loan new construction” can describe several different homebuying situations. You might be purchasing a completed new home, choosing a home that is already under construction, or looking for financing that funds the construction of a home from the beginning.
Those processes are not necessarily the same. The U.S. Department of Veterans Affairs backs qualifying VA loans, while private lenders make the loans and determine many of their underwriting requirements.
If you plan to use VA financing, talking with a qualified VA lender early can help you understand which financing options are available for the type of new home you want to purchase.
Can You Buy a Move In Ready Home With a VA Loan?
Potentially, yes. A Move In Ready home can give a VA buyer the opportunity to purchase new construction without starting the building process from the beginning.
Allen Edwin Homes offers new homes at multiple stages of construction throughout Michigan, Indiana, and Ohio. That includes homes that are already complete as well as homes currently under construction.
Does a New Construction Home Need a VA Appraisal?
VA backed purchase loans include an appraisal process. A VA appraiser provides an opinion of the property's value and evaluates the home for applicable VA Minimum Property Requirements.
A VA appraisal is not the same thing as an independent home inspection. The appraisal is part of the VA loan process, while a home inspection is a separate evaluation a buyer may choose to obtain.
Do VA Loans Require a Down Payment on New Construction?
Not necessarily. The Department of Veterans Affairs states that eligible borrowers may be able to obtain a VA backed purchase loan with no down payment when the home's sales price is not higher than its appraised value.
That does not mean every VA transaction requires zero money at closing. Closing costs, prepaid expenses, the VA funding fee when applicable, and lender requirements can still affect the amount a buyer needs.
Is buying new construction the same as getting a VA construction loan?
No. Buying a newly built home with VA financing and using financing to fund construction from the ground up can be different transactions.
If you are considering a home that is already built or under construction, ask your lender how VA purchase financing applies to that specific home. If you want to finance construction itself, ask whether the lender offers that type of VA financing.
Does Allen Edwin Homes Accept VA Financing?
Yes. Allen Edwin Homes accepts VA financing on eligible new home purchases in Michigan, Indiana, and Ohio.
That can give VA buyers a clearer path when exploring new construction. With a resale home, the individual seller decides whether to accept, counter, or decline an offer. Allen Edwin Homes accepts VA financing on eligible purchases, so buyers know from the beginning that VA financing is welcome.
Since Allen Edwin Homes began tracking VA financed transactions in 2017, 667 homes have closed using VA financing.
VA New Construction FAQs
Frequently Asked Questions About VA Loans and New Construction
Can a VA loan be used for a brand new home?
Yes. VA backed financing can be used for qualifying new construction purchases when the borrower, home, appraisal, lender, and loan meet applicable VA requirements.
Can I use a VA loan for a Move In Ready home?
Potentially, yes. A completed or Move In Ready new home may be purchased using VA financing when the buyer, property, appraisal, and loan meet applicable requirements.
Can I use a VA loan on a home that is still under construction?
Potentially. VA has appraisal procedures for new construction and properties under construction. The exact financing process depends on the home's construction stage, lender, and applicable VA requirements.
Do VA loans require a home inspection?
A VA appraisal is required as part of a VA backed purchase loan, but it is not the same as an independent home inspection. Buyers should understand the difference between the two when purchasing a home.
Does Allen Edwin Homes accept VA financing?
Yes. Allen Edwin Homes accepts VA financing on eligible new home purchases in Michigan, Indiana, and Ohio.
Explore New Homes That Accept VA Financing
Allen Edwin Homes accepts VA financing on eligible new home purchases throughout Michigan, Indiana, and Ohio. Compare available homes or learn more about VA financing before taking your next step.
