VA Loans


  • What is a VA construction loan?
  • Many times in California, Colorado, and Florida there are bare lots available for sale, but unfortunately there are no lot loans for the buyer to purchase the lot.  As a result the VA  guaranteed home loan has created a product that allows a buyer to purchase a bare lot, and finance the construction costs of the new home, manufactured home, or modular home, all in one mortgage.  The mortgage is called a VA one time close construction to permanent loan, or a VA OTC.  This one time close, construction to permanent loan, is available for all build-able lots in the Cities of Sonoma county, and we service the entire state of California, Colorado, and Florida as well.  Remember that borrower’s must be credit approved and qualified.  Call us today, 707-583-3666 to see if you’re approved for a VA one time close construction to permanent loan.
  • The VA construction to permanent loan is a great option that provides the short term financing of a construction loan with the stability of a long term VA fixed rate permanent loan.  As a result there is no need to re-qualify for the permanent loan after the construction process is complete.
  • Whether you’re interested in building a manufactured home, a stick built home, or modular home, you can accomplish any of these options with one loan and one closing only.  As a result No re-qualification.  No second appraisal.  There are no unique property types with the VA one time close construction to permanent loan though, this means no shipping container homes, no tiny homes, and no log cabins.
  • The borrower must contract with a VA approved builder to complete all work on the property.  That builder must be a licensed GC, general contractor.
  • There is no self help on the VA one time close construction to permanent loan program, this means that the borrower cannot act as the general contractor or builder.  It also means that your family member cannot act as the builder or general contractor either.  The borrower can search the VA portal for VA approved builders in their area.


  • Max LTV is 100% LTV through VA(not including the funding fee)
  • Yes, you read it right, you can acquire the land, and finance the construction of your new home with no money down.  You can even have the builder pay all of your closing costs.
  • No Payments due from the borrower during construction, this is calculated into the total job cost and financed with the construction loan proceeds.
  • 15 and 30 year fixed rates


  • At closing, after the purchase money loan is used to cover the purchase of the land, the balance of the funds are placed in an escrow account to be disbursed as construction progresses.
  • Borrowers will often ask how their money is secured and kept safe during the course of construction.  They wonder if the builder can request funds for work that hasn’t been completed and take off with the money.  The good news is that the construction funds are disbursed on an “as completed” basis, meaning that work must be finished in order for the contractor to receive funds.  The check is released to the builder only with the written authorization of the borrower as a fail safe measure.

After completion of construction, the construction escrow account must be fully extinguished.  Because of this any remaining funds must be applied to the outstanding principal balance of the permanent mortgage and may not be released to the borrower.

The President and Broker of Record for North Bay Capital was iterviewed about the VA one time close construction to permanent loan.  You can find the article here.

You can also view the videos covering the VA one time close construction to permanent loan below, and call us with any questions.

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North Bay Capital

(707) 583-3666
2974 Night Song Way
Castle Rock, CO 80109


Company NMLS ID 1279902
Individual NMLS ID 278103
Company CA DRE 01970612
Individual CA DRE 01855372

This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).
Loans made or arranged pursuant to CA Bur of Real Estate – Real Estate Broker – Broker#1279902. California Bureau of Real Estate (877-373-4542). NMLS #1279902