VA Construction Loans in Nebraska

Building a new home in Nebraska with a VA loan

Nebraska Veterans who build usually want one of two things. Some want a newer home in a growing suburb of Omaha or Lincoln. Others want a few acres with room for a shop, out where the nearest neighbor isn't right next door. A VA one-time close construction loan handles both. One closing covers the lot, construction and permanent mortgage, with $0 down on loans up to $1 million for eligible Veterans.

Shirley's team handles Nebraska VA construction loans, from your early questions through closing.

Where Nebraska Veterans are building

Around Omaha, much of the new construction is in Papillion, La Vista, Bellevue, Gretna, Bennington and Elkhorn. Bellevue and Papillion are popular with families connected to Offutt Air Force Base. Across the Platte, Ashland and Springfield offer a smaller-town feel with access to both metros.

In and around Lincoln, Veterans build on the city's edges and in nearby towns like Hickman, Waverly and Firth. Lincoln is also home to the Nebraska Air National Guard base. Farther west, Kearney, Grand Island and Hastings have steady new-home building, and North Platte and Scottsbluff serve the western half of the state. Acreages outside these towns are common for Veterans who want more land.

Land and site considerations in Nebraska

• Acreages, wells and septic. Rural lots usually need a private well and an onsite wastewater system. Have the soils evaluated before you design the house, and make sure the lot can support a system where you want it.
• Wind and severe weather. Nebraska gets strong winds, hail and tornadoes. Talk with your builder about roofing, siding, window choices and adding a storm shelter or a basement safe room.
• Frost and basements. Frost depth drives footing design, and basements are common in much of the state. Soil conditions on your lot will affect drainage and foundation work.
• Flood plains. Land near the Platte, Elkhorn, Missouri and other rivers can sit in a flood zone. Check the flood map before you buy, especially for a lot close to the water.
• Zoning and access. County zoning sets minimum acreage and setbacks for homes in many rural areas. Confirm legal road access, whether the road is maintained in winter, and the cost to run power.

If you bought your acreage earlier, the construction loan can pay off what you still owe on it at closing. See VA construction loans on land you already own. A home on an acreage can qualify as long as the property isn't a working farm or ranch and the finished house meets VA's minimum property requirements.

Nebraska contractor registration and local permits

Under the Nebraska Contractor Registration Act, contractors and subcontractors doing business in the state must register with the Nebraska Department of Labor. The department says plainly that registration does not guarantee quality of work or protect against fraud. Treat it as a basic check, then look at a builder's finished homes, references and track record.

Building permits and inspections are handled by your city or county. Omaha, Lincoln and other cities have their own codes and permit offices, and the rules in rural counties vary. Your builder usually pulls the permits.

Separate from state registration, the lender approves your builder before closing, and the build is priced under a fixed-price contract. If you were hoping to finish the basement or put up the shop yourself, plan on the builder doing it: owner-builders and DIY work aren't allowed. Read our builder information page and why you can't be your own general contractor.

How the loan works for a Nebraska build

One loan, one closing: the VA one-time close construction loan pays for the land, the build and the permanent mortgage. Closing usually takes about 2–3 months, and construction gets a 12-month period after that. Your builder pays the interest reserve and construction management fee, both built into the loan amount, so you have no monthly payment while the home is under construction (here's how the interest reserve works). When the home is complete, you have a 15- or 30-year fixed-rate mortgage.

VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. Loans over $1 million, up to a $2 million maximum, need 5% down. Qualifying starts with residual income, the money left each month after major expenses, so a higher debt-to-income ratio is often fine when residual income is strong.

Nebraska homestead exemption for disabled Veterans

Nebraska's homestead exemption includes categories for Veterans, according to the Nebraska Department of Revenue's homestead exemption guide:

• Veterans receiving VA compensation for a 100% service-connected disability can receive a 100% exemption, regardless of income or home value.
• Veterans who are paraplegic or multiple amputees, whose homes were substantially contributed to by VA, also receive a 100% exemption regardless of income or value.
• Wartime Veterans totally disabled by a non-service-connected accident or illness may qualify for an income-based exemption.

Certain surviving spouses may also qualify. You file Form 458 with your county assessor each year between February 1 and June 30. Once your new home is finished and you live there, ask the assessor which year you can first file. Compare other states on our property tax exemption by state page.

Military installations in Nebraska

Offutt Air Force Base near Bellevue is Nebraska's largest military installation. The Nebraska Air National Guard is based in Lincoln, and the Army National Guard has facilities across the state. If you served in the Guard or Reserve, review VA construction loan eligibility.

Get started from Nebraska

Start with the online application: about 10 minutes, soft credit pull only. After reviewing it, Shirley's team will tell you how your plan fits the program and handle the loan from there. You can also call 888-788-4977, email shirley.mueller@ccm.com or browse the FAQ.

Nebraska VA construction loan FAQs