VA Construction Loans in Maryland

Maryland Veterans and active-duty service members can build a new home with a VA one-time close construction loan, which covers the lot, construction and the permanent mortgage in one transaction: no second closing, no payments during the build and no private mortgage insurance.

How VA Construction Loans Work in Maryland

A VA construction loan in Maryland is available to eligible Veterans, active-duty service members and qualifying surviving spouses. It combines the construction period and the permanent mortgage into a single loan: one application, one appraisal and one closing. With full entitlement, it's $0 down on loans up to $1 million (loans over $1 million, up to $2 million, need 5% down), and the interest during the 12-month construction period is covered by an interest reserve built into the loan.

Maryland has a large military presence. Fort George G. Meade, Joint Base Andrews, Aberdeen Proving Ground, Naval Air Station Patuxent River and the U.S. Naval Academy all have sizable military and Veteran communities around them.

Veterans build across the state, from Hagerstown and Frederick, where land generally costs less than near D.C., to communities along the Chesapeake Bay, to the higher-priced Baltimore–Washington suburbs in Anne Arundel, Howard and Montgomery counties.

Maryland VA Construction Loan Eligibility

Qualifying for a VA one-time close construction loan in Maryland begins with the service criteria set by the U.S. Department of Veterans Affairs. Beyond that, my team reviews your credit, income stability, debts and residual income, looking at your complete financial picture rather than a single number.

Key eligibility highlights for Maryland include:

• Service that meets VA requirements, confirmed by a Certificate of Eligibility (COE)
• Income that supports the payment; for active-duty borrowers, base pay and BAH both count
• VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score
• Plans to live in the finished home as your primary residence

See the full VA construction loan eligibility guide. Applying is a soft credit pull only, and my team reviews every application.

Maryland Veteran Property Tax Exemption

For Veterans who qualify, Maryland removes real property tax on the home entirely. Because tax rates vary by county, the dollar savings depend on where you build.

The Maryland disabled Veteran property tax exemption includes:

• A full exemption from real property tax on the dwelling house and its surrounding yard
• Eligibility for Veterans rated by the VA as 100% service-connected, permanent and totally disabling, and for certain disabled active-duty service members
• Eligibility for certain unremarried surviving spouses, each category with its own application form
• Owner-occupied homes only, not rental or investment properties
• Applications accepted at any time through the State Department of Assessments and Taxation (SDAT); the usual September 1 deadline doesn't apply

Since your home is new construction, you'll typically file once it's complete and you've moved in. Compare states on the property tax exemption by state page.

Why Consider Maryland for Building a Home with a VA Loan?

Maryland combines a high concentration of military installations, strong BAH in the D.C. and Baltimore areas, and geography that ranges from Chesapeake Bay waterfront to mountain valleys to busy suburbs. In busy markets, building can be an alternative to competing for a limited supply of existing homes.

Popular areas for VA construction borrowers include the Baltimore region; Annapolis, with its Naval Academy ties; Frederick and Hagerstown, where land costs are more modest; Southern Maryland near Patuxent River; and D.C.-adjacent corridors like Columbia, Odenton and Waldorf.

What Maryland offers for a VA construction build:

• Diverse land choices: coastal, rural, mountain and suburban parcels across 23 counties and Baltimore City
• Several major military installations, with BAH in the D.C. region among the higher rates in the country
• Access to schools, healthcare and employment in the Baltimore–Washington corridor
• Federal and defense-contractor employers across the region
• Flexibility to build a 2–4 unit home near an installation, as long as you live in one unit as your primary residence

Are You a Builder Interested in Working with Veterans?

My team connects qualified builders with Maryland Veterans who are ready to build using a VA construction-to-permanent loan. The VA no longer issues builder IDs, but every builder must be approved by the lender before closing and work under a fixed-price contract. Maryland requires home builders who construct new homes to register with the Home Builder Registration Unit of the Attorney General's Consumer Protection Division; builders who work only in Montgomery County follow that county's own program. Owner-builders and DIY work aren't allowed on my team's VA construction loans.

Builders can review the builder requirements to begin.

VA Construction Appraisal Requirements in Maryland

For new construction, the VA appraiser reviews your plans, specifications, the lot and the builder contract and issues a value "subject to completion," with a final inspection once the home is finished. The appraisal also confirms the home will meet VA Minimum Property Requirements (MPRs) for safety, sanitation and structural soundness.

Key Maryland appraisal and lot considerations include:

• Rural lots on private wells and septic, common in counties like St. Mary's, Carroll and on the Eastern Shore, need water testing and septic approval, so allow extra time.
• Lots within 1,000 feet of tidal waters fall in the Chesapeake Bay Critical Area, where local rules limit clearing and building, including a minimum 100-foot buffer from the water.
• Properties in FEMA flood zones require flood insurance, which is included in your monthly cost when qualifying.
• The appraised value must support the total of the land cost and the full construction budget.

Maryland VA construction loan FAQs