VA Construction Loans in Texas

The Texas VA construction loan program gives Veterans, Active-Duty Service Members and eligible surviving spouses in Texas a way to build instead of buy. With a VA one-time close construction loan, your lot, your construction financing and your permanent mortgage are all handled in a single transaction, and my team handles the loan from application until it converts to your permanent mortgage.

How to Get a VA Construction Loan in Texas

To get a VA construction loan in Texas, you'll need a VA Certificate of Eligibility (COE), a lender that offers VA construction financing, a builder approved by that lender before closing, and a lot, either one you're buying or land you already own. A VA one-time close construction loan lets you build a home on your land or on newly purchased land, all within a single loan and one closing. That avoids the cost and paperwork of a two-time close. Eligible borrowers can build with $0 down on loans up to $1 million. Loans over $1 million, up to a $2 million maximum, need 5% down.

The loan covers land and construction costs anywhere in Texas, including Austin, Dallas and Houston and the areas around Fort Hood, Joint Base San Antonio and NAS Joint Reserve Base Fort Worth.

Texas also has a second path that other states don't. Already building with a separate construction loan from a bank or builder? Once the home is finished, a Texas Vet loan from the Texas Veterans Land Board can pay that loan off. Because the home has never been occupied, it’s treated as a purchase, and my team can handle that Texas Vet loan.

Texas VA Construction Loan Options

My team helps Veterans and Active-Duty Service Members with VA construction loans and works with builders across the state, from fast-growing suburbs like Cedar Park and Leander to rural acreage. The VA no longer issues builder IDs, so we run our own builder approval process to check quality, compliance and experience. Your builder has to be approved before closing and must build under a fixed-price contract. (See our builder requirements.)

VA construction loan for already owned land in Texas

Already own a lot? A VA land and construction loan in Texas can pay off an existing land loan and finance the construction of your new home in the same closing. Learn about building on land you own.

VA construction-to-permanent loan in Texas

A VA construction-to-permanent loan finances the build and then converts to your permanent VA mortgage, a 15- or 30-year fixed loan, once the home is finished. How construction-to-permanent works.

VA one-time close construction loan in Texas

A VA one-time close construction loan in Texas means one application, one approval and one closing for land and construction. Read about the one-time close loan.

Texas VA Construction Loan Eligibility

Before you shop for land or floor plans, find out whether you're eligible for a VA one-time close construction loan in Texas.

You'll need to meet the service requirements set by the U.S. Department of Veterans Affairs. My team also reviews your credit, income and residual income to confirm you can comfortably repay the loan.

Key eligibility highlights include:

• Service that qualifies for the VA home loan benefit (Veterans, Active-Duty Service Members, National Guard and Reserve members, and some surviving spouses)
• Stable, sufficient income to support the payment, with residual income reviewed first
• Credit: VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score
• A Certificate of Eligibility (COE) issued by the VA
• Intent to live in the new home as your primary residence

Applying is a soft credit pull, and the online application takes about 10 minutes. My team will walk you through the documentation and the rest of the process. Check your eligibility.

Veteran Property Tax Exemption in Texas

Texas has no state income tax, and its property tax exemptions for disabled Veterans can make a real difference in what a new home costs you each year. Both work alongside your VA home loan benefit.

Texas offers several property tax exemptions for eligible Veterans, depending on service-connected disability status:

• 100% disabled Veterans: Veterans who receive 100% VA disability compensation, either from a 100% rating or from individual unemployability, are exempt from property tax on their residence homestead.
• Partial exemptions: Veterans with a service-connected disability rating of 10% or more can take a fixed amount off their home's taxable value, from $5,000 (10–29%) up to $12,000 (70% and up).
• Age 65 and older: Veterans 65 or older with at least a 10% rating, and Veterans who are blind in one or both eyes or have lost the use of a limb, may qualify for the $12,000 amount.
• Surviving spouses: A surviving spouse who has not remarried may keep the exemption, subject to the rules for each exemption.

You'll apply through your county appraisal district once you own and live in the finished home. The Texas Comptroller's disabled Veteran exemption FAQ has current details, and our property tax exemption by state page compares Texas with other states.

Building near Military Bases with VA Construction Loan

Texas has some of the largest military communities in the country, so building near a base with a VA construction loan is a common choice. Popular areas include Fort Hood in Killeen, Joint Base San Antonio (Lackland, Randolph and Fort Sam Houston), NAS Joint Reserve Base Fort Worth, Fort Bliss in El Paso and NAS Corpus Christi.

Key considerations include:

• Proximity to military bases: Neighborhoods near a base usually see steady housing demand because of the constant military presence.
• VA loan benefits: Eligible Veterans can build with $0 down on loans up to $1 million, with no PMI.
• Primary residence requirement: The home must be your primary residence, not an investment property.
• Builder and approval process: Your builder must be approved by the lender before closing, and the plans must meet VA property standards.
• Planning and documentation: You'll need plans, specifications, a fixed-price contract and your financial documents before closing.

If you're on active duty, tell my team about any PCS timing early. The schedule is about 2–3 months to close, then a 12-month construction period. Read more about the VA construction-to-permanent loan process.

Builders, Permits and Land in Texas

Texas doesn't license residential home builders at the state level. The state agency that registered builders was abolished in 2009. That makes a lender's builder review even more important here. My team checks each builder's experience, insurance, financial standing and past work before closing. Trades such as electrical and plumbing are still licensed, and permits and inspections are handled locally. Rules inside city limits can be very different from rules in unincorporated county areas.

If you're building outside town, plan for a private septic system (Texas calls it an on-site sewage facility, permitted through your county or local authority) and possibly a well. You may also need a longer driveway or utility extension. Expansive clay soils in much of Central and North Texas often call for an engineered foundation. Along the coast, flood zones and windstorm-rated construction affect both building costs and insurance.

Are You A Builder Interested In Working with Veterans?

If you build homes in Texas and a Veteran client wants VA financing, start with our builder requirements page. It lists what my team needs to approve you before closing. See builder requirements.

VA Construction Appraisal Considerations for Texas

Knowing the VA Minimum Property Requirements (MPRs) is a big part of planning a build in Texas with a VA one-time close construction loan. The VA appraisal makes sure your new home meets standards for value, safety and quality.

For a Texas VA construction appraisal, the appraiser reviews your plans, specifications and site to confirm they meet VA MPRs for safety, soundness and sanitation. The appraiser also checks that the projected value supports the loan amount and that the home will be suitable for year-round living.

Key VA construction appraisal considerations in Texas include:

• The property must be primarily residential and typical for the local market
• Construction must meet VA MPRs for safety, sanitation and structural integrity
• Reliable access to utilities and an all-weather road is required
• The site must not be at excessive risk of flooding, erosion or other environmental hazards
• The appraised value must support the combined land and construction costs

My team works with you and your builder to get the appraisal package complete the first time.

Texas VA construction loan FAQs