VA Construction Loans in New Hampshire

Building a home in New Hampshire usually means building in a town with its own way of doing things. Lots in Bedford, Londonderry or Hampton look nothing like a wooded parcel outside Keene, Laconia or Conway, and many homesites outside the cities rely on a private well and a septic system. A VA one-time close construction loan gives eligible Veterans and service members one loan and one closing for the land, the build and the permanent mortgage.

Shirley's team handles New Hampshire VA construction loans from application to closing, starting with the groundwork: explaining how the program treats wells, septic, town permits and builder approval.

What the VA one-time close loan covers

One closing covers three things: buying the lot (or paying off land you already own), paying the builder as construction moves along, and setting up the 15- or 30-year fixed-rate mortgage that takes over when the home is finished. Loans up to $1 million need $0 down. During the 12-month construction period you make no house payments, because the builder pays the interest reserve and construction management fee, which are built into the loan amount. VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. For the full picture, see our page on VA one-time close construction loans.

Where Veterans build in New Hampshire

• Seacoast: Portsmouth, Dover, Rochester, Exeter and Hampton, close to Pease Air National Guard Base and the Portsmouth Naval Shipyard across the river in Kittery, Maine.
• Merrimack Valley: Manchester, Nashua, Concord, Londonderry, Derry and Salem, where commuters to the Boston area often look for land a little farther out.
• Lakes Region: Laconia, Gilford, Meredith and the towns around Lake Winnipesaukee, popular with retirees building a primary home.
• Monadnock and the North Country: Keene, Peterborough, Littleton and Conway, with larger wooded parcels and more rural site work.

Remember that the home has to be your primary residence. A seasonal camp or second home on the lake isn't eligible for VA financing.

Wells, septic and New England ground

Much of New Hampshire is served by private wells and septic systems, and the septic design is a big early step. According to the New Hampshire Department of Environmental Services, septic plans must be designed and submitted by someone NHDES authorizes, and NHDES reviews the design and issues an approval for construction; your town may need to approve the plans as well. The NHDES septic systems page explains the process. Get the soils and septic design sorted out before you commit to a lot, because ledge, wetlands and slope can change what a parcel can support.

Winters shape construction too. Footings have to go below frost, heavy snow affects roof design, and site work on rocky glacial soils can take more time and money than buyers expect. A 12-month construction period gives your builder room to plan around the weather, but a realistic schedule from the start helps everyone.

The appraisal will confirm the finished home meets VA's minimum property requirements, including a safe, adequate water supply and a working sewage system.

Builders, trades and permits

For a VA construction loan, your builder must be a qualified builder approved by the lender before closing, working under a fixed-price contract. My team's VA construction loans don't allow owner-builders or DIY work, so plan on hiring a professional builder even if you're handy.

Building permits and inspections in New Hampshire are handled by your town or city, and requirements vary a lot from one community to the next. Some trades are licensed by the state; for example, electricians are licensed through the New Hampshire Office of Professional Licensure and Certification. Ask your town's building department what it requires of the builder and the subcontractors before you sign a contract, and see our builder information page for what the lender's approval looks for.

Military connections in New Hampshire

Pease Air National Guard Base in Newington and Portsmouth is home to the New Hampshire Air National Guard, and many shipyard workers and service members assigned to the Portsmouth Naval Shipyard in Kittery, Maine, live on the New Hampshire side. Active-duty service members, Guard and Reserve members who meet VA service requirements, and Veterans can all check their VA construction loan eligibility.

New Hampshire property tax credit for disabled Veterans

New Hampshire gives a property tax credit to honorably discharged Veterans with a total and permanent service-connected disability, Veterans who are double amputees or paraplegic because of a service-connected injury, and their surviving spouses. Under RSA 72:35, the standard credit is $700 a year on the home you live in as your principal residence, and a town or city can vote to adopt a larger optional credit of up to $5,000. Because the optional amount is a local choice, ask your town assessor what your community offers. The statute is on the New Hampshire General Court website, and our property tax exemption by state page has more. On the loan side, a Veteran who receives VA disability compensation doesn't pay the VA funding fee.

Starting your New Hampshire build

The online application takes about 10 minutes and uses a soft credit pull. Expect about 2–3 months to close, then the 12-month construction period. If you already own land, read about a VA construction loan on land you already own, and look over VA construction loan closing costs so nothing surprises you.

New Hampshire VA construction loan FAQs