VA Construction Loans in West Virginia

Building a new home in West Virginia with a VA loan

In West Virginia, Veterans build on ridgetop parcels, in river valleys and in the growing Eastern Panhandle towns within commuting distance of the Washington, D.C. area. A VA one-time close construction loan finances the land, the build and the permanent mortgage with one closing. That means $0 down on loans up to $1 million, a 12-month construction period with no mortgage payments, and a 15- or 30-year fixed rate after the home is finished.

My team will talk with you about your plans and handle your West Virginia VA construction loan from application to closing.

Where Veterans build in West Virginia

• Eastern Panhandle: Martinsburg, Inwood, Hedgesville, Charles Town and Ranson, home to the 167th Airlift Wing and a short drive to Northern Virginia and Maryland.
• North Central West Virginia: Morgantown, Bridgeport, Fairmont and Clarksburg, including the communities around the Clarksburg VA Medical Center.
• Kanawha Valley: Charleston, Cross Lanes, Hurricane, Winfield and Teays Valley, near the 130th Airlift Wing.
• Huntington and the Ohio River: Huntington, Barboursville, Parkersburg and Point Pleasant.
• Mountain and southern counties: Beckley, Lewisburg, Elkins and Kingwood, near Camp Dawson, a West Virginia National Guard training center.

Land and site considerations in West Virginia

Terrain drives costs here. A cheap parcel can get expensive once you price the site work:

• Slopes and grading: Steep lots may need significant excavation, retaining walls or a walkout basement design. Have your builder walk the land and include site work in the fixed-price contract.
• Driveways and access: The home needs legal, year-round access. Many rural parcels sit on private roads or rights-of-way, so confirm a recorded easement and plan for a driveway you can use in winter. See the minimum property requirements checklist.
• Flood zones: Flat land in the valleys often sits along creeks and rivers. Check the flood map before you buy; a VA loan requires flood insurance in a special flood hazard area, and building higher or elsewhere on the lot may be the better choice.
• Mineral rights and past mining: In parts of the state, mineral rights may have been sold separately from the surface, and some areas have old mine workings. A title search and conversation with your attorney or title company are worth it.
• Wells and septic: Rural lots typically need a private well and a septic system approved locally. Get the answers before closing on the land.

Own your land already? Any balance on it is paid off at closing, and the build is funded from the same loan. Read about building on land you already own.

West Virginia builders: licensing and permits

West Virginia contractors are licensed through the West Virginia Division of Labor. Local building permits can't be issued to an unlicensed contractor when the total cost of the job is $2,500 or more, and a contractor's license number must appear on contracts and advertising. You can confirm a license by contacting the Division of Labor.

Building codes and permit offices vary by county and city, and some rural areas have more limited local inspection programs, so ask your builder and county what applies to your lot. For the VA loan, the builder must be approved by the lender before closing and must work under a fixed-price contract, and the home still has to meet VA's minimum property requirements and pass the inspections the lender requires. VA construction loans don't allow owner-builders or DIY work. See our builder information page.

Property tax relief for disabled veterans in West Virginia

West Virginia has two programs worth knowing about:

• Disabled Veteran Real Property Tax Credit: Veterans rated 90% to 100% permanently and totally disabled can claim a refundable state income tax credit that refunds the real property tax they paid on their homestead. You claim it by filing a West Virginia personal income tax return with Form DV-1, your property tax receipts and your VA rating letter. An unremarried surviving spouse may qualify in some cases. Details are on the West Virginia Tax Division site.
• Homestead exemption: Homeowners who are 65 or older, or permanently and totally disabled and not gainfully employed, can exempt the first $20,000 of assessed value on their home. You apply with your county assessor, and applicants generally must have been West Virginia residents for two consecutive calendar years before applying, which matters if you're moving in from another state. See an example on the Fayette County Assessor site.

The two programs interact, so ask the Tax Division or your assessor which combination fits you. Compare other states on our property tax exemption by state page.

Qualifying for a VA construction loan in West Virginia

On credit, VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. Residual income is the first test, and a higher debt-to-income ratio is often fine when residual income is strong. The VA funding fee can be financed into the loan, and Veterans who receive VA disability compensation don't pay it.

You won't make payments while the house is built. Interest during that time comes from the interest reserve, which, like the construction management fee, is built into the loan amount and paid by the builder. Start with the eligibility guide and the closing costs guide.

West Virginia VA construction loan FAQs