VA Construction Loan Florida – Build Your Dream Home with Zero Down
As a Veteran or service member in Florida, you can use your VA entitlement to finance not just the purchase of a home, but also the construction of a brand-new home. With a VA One-Time Close Construction Loan, you can combine the land purchase (or payoff of your existing lot) and the cost of construction into a single loan and closing. This program makes building a home in Florida simple, affordable, and Veteran-focused.
What is a VA One-Time Close Construction Loan?
A VA One-Time Close (OTC) Construction Loan is designed to help Veterans and military families build a new home without needing multiple closings.
✅ One loan, one closing, one set of closing costs
✅ Finance land purchase (or use land you already own)
✅ Lender/Builder-managed draws during construction
✅ Roll directly into your permanent VA loan when the home is complete
During construction, the builder covers the interest payments and construction fees, so you don’t have to worry about double housing payments.
Florida-Specific Guidelines
- Permits: In Florida, approved building permits must be in place before final loan approval (if the borrower already owns the lot).
- Eligible Properties: Single-family homes, modular homes, and barndominiums may qualify.
- Builder Approval: All builders must go through the Builder Acceptance process before closing.
Benefits of a VA Construction Loan in Florida
- No down payment (up to 100% financing available on eligible loan amounts)
- No monthly PMI – a major cost savings compared to FHA or conventional loans
- Flexible property types – including barndominiums and modular homes
- One-time close – eliminates the need for separate land and construction loans
- Float-down option – if rates drop before your loan converts, you may be eligible for a one-time interest rate reduction
How the Process Works
- Pre-Approval – Get pre-approved for your VA Construction Loan.
- Builder Approval – Ensure your builder is accepted through CCM’s Builder Acceptance Department.
- Plans & Specs – Submit home plans, budget, and lot details for appraisal.
- One Closing – Close on your VA loan, which covers both land and construction.
- Construction Phase – Builder draws funds as work progresses.
- Conversion – Once complete, your loan automatically converts into a permanent VA loan.
VA Construction Loan Florida – Frequently Asked Questions
Q: Can I use my VA loan to buy land and build at the same time?
A: Yes. With the VA One-Time Close loan, you can finance the land purchase (or payoff of an existing lot) and construction in a single loan.
Q: Who pays the interest during construction?
A: The builder is responsible for covering interest-only payments and construction management fees on VA construction loans.
Q: Can I build a barndominium or modular home in Florida with a VA loan?
A: Yes. Barndominiums, site-built homes, and modular homes are eligible property types for VA OTC loans.
Q: Do I need an approved builder?
A: Yes. Builders must meet specific experience, licensing, and insurance requirements. We will send the builder a packet to complete to get approved.
Q: Is there a float-down option if rates drop?
A: Yes. Borrowers may request a one-time float-down option before conversion to permanent financing if rates are at least 0.25% lower.
Q: What is the maximum loan amount?
A: Up to $2 million depending on qualifying factors, with 100% financing available up to $1 million.
Get Started Today
Ready to build your dream home in Florida using your hard-earned VA benefits?
Start your application here or contact VA loan expert Shirley Mueller to learn more about the VA Construction Loan program in Florida.
