Build from the ground up with your VA benefit and nothing down

Yes. With full VA entitlement, a VA one-time-close construction loan can finance the land, the build, and the permanent mortgage with $0 down. You'll still have standard closing costs and the VA funding fee, but both can often be structured into the loan or offset by land equity, so many veterans come to the table with very little out of pocket.

The one we focus on is a single loan — a one-time-close, construction-to-permanent mortgage. You close once, and when the home is finished the construction loan converts automatically into your permanent VA mortgage. There's no second application, no re-qualifying, and no separate refinance. Some lenders only offer a two-loan structure (a short construction loan followed by a VA refinance); as a broker, we look for the true single-close option first.

Generally yes. The VA funding fee applies to a construction-to-permanent loan the same way it does to a purchase, typically in the 2.15%–3.3% range for first use (it can be financed into the loan). The important exception: veterans with a VA service-connected disability rating, and certain surviving spouses, are exempt from the funding fee. We confirm your exact figure against your Certificate of Eligibility before you commit.

The builder has to be a licensed, insured general contractor who is registered with the VA to do construction work and who provides the required warranty. There's no owner-builder or DIY option. If your preferred Sonoma County contractor isn't already set up with the VA, that registration is usually a straightforward step — we help coordinate it early so it doesn't hold up your timeline.

Yes. Like all VA loans, a VA construction loan is for an owner-occupied primary residence — not a vacation home, second home, or rental. You're generally expected to occupy the home once it's complete, within the timeframe VA allows for new construction.

VA allows one-time-close construction, but it's operationally more involved than a standard purchase — managing draws, inspections, and builder registration — so a lot of banks simply don't bother. That's the single biggest reason to work with a broker. North Bay Capital isn't tied to one bank's menu, so we can place your file with a lender that genuinely funds VA construction loans instead of talking you out of it.

Absolutely, and it often works in your favor. The equity in a lot you already own can be applied toward the project. The loan amount is based on the lesser of the finished home's appraised value or your total land-plus-construction cost, so an inexpensively acquired or inherited parcel can meaningfully reduce what you need to bring. We review the lot's zoning, access, and utilities up front.

Expect the financing and plan-approval stage to run a couple of months before the first shovel, then the build itself follows your contractor's schedule — commonly several months to a year depending on size and complexity. We get your Certificate of Eligibility and pre-qualification handled early so the loan isn't the bottleneck.