VA construction loan calculator
No payments during the build. Your payment starts once the home is finished.
Your monthly payment after the build
The interest reserve pays the interest during the build, so you make no construction payments out of pocket. Everything needed to finish the home must be included in your builder’s fixed-price contract. Any contingency or interest reserve that isn’t used becomes a principal reduction when the loan is modified after the build, which can lower the payment shown. Figures assume a 12-month build. Property tax is figured on the completed value; the tax rate and insurance amount are placeholder examples, so replace them with real numbers for your county (and add flood insurance if the lot is in a flood zone). Estimate only; your builder’s contract, the appraisal and your Loan Estimate set the real numbers. Questions about any line? Book a 15-Minute Call with Shirley’s team.
For illustration only. Results are estimates based on the numbers you enter and general assumptions, and may not reflect your situation. This is not a Loan Estimate, pre-approval, rate quote or commitment to lend. Any rate shown is an example, not a current rate or an offer. Your actual eligibility, loan amount, rate, payment and costs depend on your credit, income, property, appraisal and underwriting, and can change without notice. Not all applicants qualify. CrossCountry Mortgage, LLC NMLS #3029. Equal Housing Opportunity. Full disclaimer.
Enter your builder’s contract price and your lot details. The calculator adds what a VA one-time close construction loan builds in: a contingency, the interest reserve that covers interest during your 12-month build, the construction management fee, and the VA funding fee (unless you’re exempt). Then it shows your monthly payment after the build.
How the numbers work
- No payments during the build. The interest reserve and construction management fee are part of the loan amount and paid by your builder, because VA doesn’t allow the Veteran to pay them.
- Land you own counts. If you own your lot, any payoff goes into the loan and your equity can count toward the deal. See building on land you already own.
- Unused contingency is applied to your principal when the loan converts after the build.
- $0 down up to $1 million. Loans over $1 million (up to $2 million) need 5% down.
The VA one-time close construction loan, at a glance
- One loan, one closing for the lot (purchase or payoff), the build and your permanent mortgage.
- $0 down on loans up to $1 million. Loans over $1 million (up to $2 million) need 5% down.
- Credit: VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score.
- No payments during the build. The interest reserve and construction management fee are built into the loan and paid by your builder.
- A 12-month construction period, then a 15- or 30-year fixed-rate VA mortgage. No monthly mortgage insurance.
- Your builder is approved by the lender before closing and builds under a fixed-price contract. Owner-builders and do-it-yourself work aren’t allowed.
Want to understand the reserve in detail? Read what an interest reserve is and VA construction loan closing costs.