"*" indicates required fields
Texas VA Mortgage is a specialist VA construction loan lender serving veterans, active duty service members, and qualifying surviving spouses building custom homes across the State of Texas. We originate VA construction loans, VA One-Time Close construction loans, VA renovation loans, and the full VA loan product suite under NMLS #355253, operated by Security America Mortgage.
Texas is the largest VA loan market in the United States, home to more than 1.5 million veterans, 16 major military installations, and one of the most veteran-favorable benefit environments in the country. Our team focuses exclusively on Texas veterans and the specific construction lending challenges that come with building in this state.
If you are a Texas veteran planning to build a custom home, call (888) 295-4055 to speak with a VA construction loan specialist or start your application below.
Your Lender Choice Changes
Everything on a VA Construction Loan
On a VA purchase a lender mistake delays your closing. On a VA construction loan it can derail your entire build.
VA construction loans require steps that purchase loans do not. Builder qualification, as-built appraisals, draw schedules, contingency reserves, and OTC conversion documentation all require a lender who has done this before — not one figuring it out on your project.
Texas VA Mortgage exists specifically for this work. Every process — builder acceptance, draw inspection coordination, appraisal scope — is designed around VA construction from the ground up. Not adapted from a purchase loan workflow.
When you work with a lender who has closed VA construction loans at your installation before, complications become manageable. When you work with one who has not, they become project-ending.
Builder Qualification Rejected Late
Inexperienced lenders reject builders weeks into the process — after you have signed a contract and paid a deposit.
Draw Requests Delayed
Lenders unfamiliar with construction draws slow your builder and extend your build unnecessarily.
As-Built Appraisal Errors
Wrong appraiser or incorrect scope forces a second appraisal and adds weeks to your closing timeline.
OTC Conversion Fails at the Finish Line
Missing documents at certificate of occupancy can delay your permanent mortgage conversion entirely.
Texas VA Mortgage — Built for This
Every checklist, every relationship, every process at Texas VA Mortgage is designed specifically for VA construction loans — not adapted from a purchase workflow.
Most Lenders vs. Texas VA Mortgage
Specialized VA construction lending vs. a general lender treating construction as an afterthought.
The fastest way to confirm which column your current lender falls in is a 10-minute call. Jason Noble at (888) 295-4055 — no obligation, just straight answers. Or get a quote online →
How the Texas VA Construction
Loan Process Works
Seven phases from pre-approval to permanent mortgage. Here is exactly what happens at each stage so you know what to expect before you start.
You apply with Texas VA Mortgage online, by phone at (888) 295-4055, or by appointment. We review your credit, income, employment, debt-to-income ratio, and VA entitlement status.
Required Documents- Certificate of Eligibility (COE) — we pull this from the VA portal on your behalf
- DD-214 for veterans, or service verification for active duty
- Two years of W-2 forms and federal tax returns
- Two months of recent pay stubs
- Two months of bank statements (all accounts)
- Photo identification
- VA disability award letter if you have a service-connected rating
- Texas residency documentation if not on military orders in Texas
Three components must be in place before underwriting can begin:
- The lot you will build on — already owned or purchased through the loan
- A licensed and insured Texas builder
- A fixed-price construction contract with detailed architectural plans
Since the VA rescinded the Builder ID requirement on March 31, 2025 under Circular 26-25-01, builders no longer register with the VA directly. Texas VA Mortgage is now the sole gatekeeper for builder acceptance.
What We Review- Local Texas business licensing where required by city or county
- General liability insurance — $1 million minimum typical
- Workers compensation insurance
- Builder's risk insurance for the project
- 24 months of recent Texas residential project history
- Five or more completed homes in the last 24 months
- References from prior buyers and subcontractors
- Fixed-price construction contract and detailed plans
The lender orders a VA appraisal based on the construction plans and specifications to estimate the reasonable value of the completed home and land. The VA’s appraisal fee schedule, effective May 1, 2026, lists $775 for a standard single-family appraisal in Texas, $800 in certain counties, and $900 in some other listed counties. Confirm the fee for your county and property type with your lender.
The maximum VA construction loan is generally limited to the lower of the VA reasonable value or eligible acquisition costs, plus the VA funding fee. If the appraised value is below eligible project costs, you may be able to:
- Request a Reconsideration of Value if you can identify an appraisal error or provide relevant comparable sales
- Revise the plans or renegotiate project costs to fit the appraised value
- Pay the difference with your own funds, if your lender permits it and you qualify
At closing you sign loan documents, the construction loan funds, and with the One-Time Close your interest rate locks through the permanent mortgage period. The full construction budget is placed in a lender-held escrow account and held until each draw milestone is completed and inspected.
The builder begins work. VA One-Time Close construction can run up to 11 months from breaking ground to certificate of occupancy. As each milestone completes, the builder invoices the lender, an inspection is completed, and that draw is released.
Typical Draw MilestonesFoundation — slab or stem wall complete and inspected
Framing — walls, roof structure, sheathing complete
MEP Rough-In — mechanical, electrical, and plumbing roughed in
Drywall — insulation installed, drywall hung and finished
Final — certificate of occupancy issued, punch list complete
When the builder completes construction and the home receives a certificate of occupancy from the city or county, the lender orders a final inspection. Upon approval, the final draw releases from escrow.
The loan automatically converts to a permanent VA mortgage at the rate locked at your original closing. No second application. No second underwrite. No second closing. Principal and interest payments begin based on the standard 30-year amortization.
Texas-Specific Considerations
Every VA Construction Borrower Should Know
Texas is not one housing market. Soils, coastal codes, tornado zones, and licensing rules vary dramatically by region. Here is what affects your build and your budget.
Soil and Foundation Engineering
Texas soils vary widely and have a direct impact on foundation cost and complexity.
- Central and East Texas expansive clay soils require engineered foundations to prevent slab heave and cracking. Geotechnical reports: $1,500 to $5,000
- Hill Country limestone (Hays, Comal, Blanco, Kerr, Gillespie counties) often requires blasting or specialized excavation — adding $5,000 to $20,000 to foundation costs
- West Texas and the Panhandle generally have more stable soils requiring less foundation engineering
Hurricane and Coastal Requirements
Building in a Texas coastal county adds construction requirements and cost. Affected counties:
- Impact-resistant windows or shutters required (wind-borne debris region)
- Hurricane straps and engineered roof-to-wall connections required
- Flood zone elevation requirements per FEMA Base Flood Elevation
- Higher windstorm insurance premiums
Tornado Risk Statewide
Texas leads the nation in annual tornado count. Engineered structural connections — Simpson Strong-Tie or equivalent — are standard practice in any Texas residential build, particularly in Tornado Alley counties stretching from North Texas through East Texas.
Most reputable Texas builders already include these in their standard specifications. Confirm with your builder that your plans include engineered connections before your contract is finalized.
Builder Licensing Reality in Texas
Texas does not require a statewide residential builder license. Some cities have local registration requirements — Austin, San Antonio, Houston, Dallas, Fort Worth, and others — but the Texas Department of Licensing and Regulation (TDLR) does not license general residential builders the way states like California do.
2026 Texas VA Loan Limits
For veterans with full VA entitlement, there is no maximum loan amount in 2026 — subject to lender capacity and appraisal value.
For partial entitlement borrowers, the 2026 standard conforming loan limit of $832,750 applies in all Texas counties.
Texas Veterans Land Board (TVLB)
The Texas Veterans Land Board, operated by the Texas General Land Office, offers Texas veterans below-market land loans separate from VA loans. TVLB features in 2026:
- Can be combined with a separate VA construction loan when you are ready to build
- Often more favorable than a standard land loan from a Texas bank
- Administered by the Texas General Land Office
Jason Noble —
VA Construction Loan Specialist
VA construction loans are not a product Jason Noble adds to a general mortgage practice. They are the practice.
Jason Noble has closed VA construction loans at Fort Cavazos, Fort Bliss, JBSA, NAS JRB Fort Worth, Ellington Field, Dyess AFB, Sheppard AFB, Goodfellow AFB, NAS Corpus Christi, and NAS Kingsville — and across rural Texas where most lenders never venture.
His practice handles every stage: builder acceptance, as-built appraisals, draw schedule coordination, contingency reserves, and OTC conversion documentation. Not learned on a borrower's project — run enough times to know exactly where complications arise and how to prevent them.
When veterans call before their project starts, they get a realistic assessment of what they qualify for, what the BAH gross-up adds to their loan, what a builder contract must contain, and what a 12 to 16 month construction timeline looks like.
Reach Jason Directly
Fort Cavazos (formerly Hood)
Killeen / Central Texas — largest active duty installation in Texas
Fort Bliss
El Paso / West Texas — serving the 1st Armored Division
Fort Sam Houston / JBSA
San Antonio — Joint Base San Antonio, multiple branches
NAS JRB Fort Worth
Fort Worth / DFW — Naval Air Station Joint Reserve Base
Dyess · Sheppard · Goodfellow AFB
Abilene / Wichita Falls / San Angelo
NAS Corpus Christi · NAS Kingsville
South Texas coastal installations
Ellington Field · Laughlin AFB
Houston Area and Del Rio / Southwest Texas
Rural Texas — All Regions
Acreage and rural-residential land statewide — no geographic restriction
VA Construction Loan Products
Three products, all built around the VA benefit. The right one depends on your project structure and land situation.
VA One-Time Close
Our primary product. Land, construction, and permanent mortgage in a single closing with your rate locked from day one.
- $0 down with full VA entitlement
- Rate locked at closing — protected through the build
- Automatic conversion at certificate of occupancy
- No second application, no second closing
- BAH grossed up 25% for qualification
- All Texas regions including rural acreage
VA Construction-to-Permanent
A two-phase approach for projects where the builder or structure requires a separate construction phase before permanent financing.
- Separate construction phase with draw schedule
- Converts to permanent VA mortgage at completion
- Available when OTC structure does not fit
- Full VA underwriting and entitlement confirmation
- BAH gross-up applies at permanent loan qualification
VA Land and Construction
Already own land? Your equity rolls into the project and can eliminate your down payment requirement entirely.
- Land equity counts toward your down payment
- Veterans with full entitlement often close $0 out of pocket
- Land must meet VA MPRs — utility access and road required
- Rural, acreage, and rural-residential lots all eligible
- Land appraisal handled as part of the loan process
Why Most Lenders Don't Offer VA Construction Loans
The VA has allowed construction financing for decades, so the scarcity is a business model problem, not a rules problem.
A purchase loan closes and gets sold. A VA construction loan lives with the lender for months: builder review, budget analysis, draw schedules, stage inspections, and the conversion to permanent financing. Volume-built lenders cannot staff it, so they advertise it and route you elsewhere.
VA guaranty rules and construction lending are separate specialties, and underwriters fluent in both are scarce. One mistake in the draw structure or the builder file and the lender owns a problem for a year.
Most investors who buy closed loans from lenders do not buy VA construction loans, so a lender needs specific relationships to offer the program at all. Without them, the loan cannot exist no matter what the ad said.
Roughly 2,400 people a month search for VA construction loan lenders; the number who can genuinely close one does not fill a page. Your job is identifying one, and the rest of this page is how.
Your Lender Choice Changes Everything
A Mediocre Lender Costs You Basis Points
On a purchase loan, a mediocre lender costs you some basis points.
The Lender IS the Experience
They decide how fast your builder gets qualified, how quickly draws fund after inspections, what happens when the build runs long, and whether the loan converts smoothly or becomes a renegotiation.
Veterans who shop this loan on rate alone routinely trade an eighth of a point for six months of draw delays. Shop the operation, then the rate.
Most Lenders vs. Texas VA Mortgage
The Typical National Lender
- ✗Advertises VA construction
- ✗Routes you to a two-close structure or a partner
- ✗Quotes 20 percent down because their program is not actually VA
- ✗Requires monthly interest payments during the build
- ✗Outsources inspections to a vendor they cannot name on the phone
Texas VA Mortgage
- ✓True single-close VA construction as the core business
- ✓$0 down with full entitlement
- ✓No payments during construction
- ✓Builder qualification in-house, usually complete within days of receiving the package
- ✓Draws and inspections are managed by a dedicated construction loan team that releases funds to your builder as completed work is inspected.
- ✓Same-day written quotes at (888) 295-4055, and we are comfortable being shopped against anyone
How to Choose the Best VA Construction Loan Lender
Ask every lender these, including us. A real VA construction lender answers all of them without a pause; an advertiser starts transferring you around question three.
Red flags that end the call
We answer all nine on the first call. Call (888) 295-4055 or get a written quote.
VA Construction Loan Requirements
The short version, in five parts:
Land can be owned already or purchased in the closing. The complete picture, Texas community property rules included, is in our Texas VA loan requirements guide. Get your paperwork ready with our documents checklist, and see how the VA residual income test works.
How Non-Taxable Income
May Be Considered
Eligible non-taxable income may be considered when a lender reviews a VA loan application. Its treatment depends on the borrower’s circumstances, required documentation, and the lender’s underwriting review.
Basic Allowance for Housing (BAH) is generally non-taxable. A lender may consider eligible BAH when reviewing qualifying income, subject to verification and applicable underwriting requirements.
Eligible tax-free income may be adjusted in some underwriting calculations. The adjustment is not automatically a fixed 25%; the applicable method and required documentation determine whether an adjustment can be used.
VA disability compensation may also be considered when supported by the required documentation. The lender determines how it is treated alongside other income during underwriting.
What the Lender Reviews
Frequently Asked Questions
What Texas veterans ask before choosing a VA construction loan lender.
A VA construction loan lender is a VA-approved lender with the specific experience and process to close VA construction loans — not just standard VA purchase loans. They handle builder qualification, as-built appraisals, draw schedules, contingency reserves, and OTC conversion documentation.
On a VA purchase a lender mistake delays your closing. On a VA construction loan the wrong lender can mean builder qualification rejected after you have signed a contract, draw requests delayed throughout construction, appraisal errors that force a second appraisal, or OTC conversion documentation that fails at the finish line. Choosing a specialist eliminates these risks before they become your problem.
Yes. We close at every major Texas installation — Fort Cavazos, Fort Bliss, JBSA, NAS JRB Fort Worth, Dyess AFB, Sheppard AFB, Goodfellow AFB, NAS Corpus Christi, NAS Kingsville, Ellington Field, and Laughlin AFB. We also close regularly on rural, acreage, and rural-residential land across all Texas regions.
Yes. Texas VA Mortgage grosses up BAH by 25% on every application because it is non-taxable income. A Fort Cavazos E-5 with dependents receiving $1,596 in BAH qualifies on $1,995. That difference typically adds $35,000 or more in construction loan buying power compared to a lender who does not apply the gross-up.
For Security America Mortgage’s current VA One-Time Close construction loan program, a 640 or higher credit score is the typical qualifying benchmark.
Veterans with scores between 620 and 639 may still be considered, although approvals in this range are uncommon. Veterans with scores between 600 and 619 may request an individual review, but approval can be particularly challenging.
A lower credit score does not automatically mean a veteran is ineligible for VA home loan benefits. VA eligibility and lender-specific construction loan underwriting standards are different. Every application is evaluated based on the complete financial picture and applicable program requirements.
Plan for 45 to 60 days from complete application to closing. Having your builder's documentation — license, insurance certificate, and fixed-price proposal — ready when you apply is the biggest variable. Construction can run up to 11 months after closing, making the full timeline roughly 12 to 16 months from pre-approval to move-in.
No. The VA eliminated the Builder ID requirement on March 31, 2025 under Circular 26-25-01. Texas VA Mortgage qualifies builders directly. Typical acceptance timeline is 2 to 5 business days once your builder's documentation — license, insurance, and fixed-price proposal — is submitted.
Yes. Your land equity counts toward your equity position in the project. Veterans with full VA entitlement and existing land equity frequently close with $0 out of pocket. The land must have utility access and a viable road to meet VA Minimum Property Requirements.
Texas VA Mortgage does not add VA construction as one product among many. It is the primary product. Every checklist, every staff relationship, every process is built specifically for VA construction — not adapted from a purchase loan workflow. Jason Noble has closed VA construction loans at every major Texas installation and across rural Texas.
Call Jason Noble at (888) 295-4055 or get a quote at texasvamortgage.org. Your first call covers VA entitlement confirmation, BAH gross-up calculation, builder qualification requirements, and a realistic project timeline — before you spend a dollar on plans or land.
VA Construction Loan Lenders Near Me: Serving All of Texas
Veterans search "near me" and discover nobody within 200 miles closes these, because the specialty is national by nature. What matters is a lender licensed in Texas who knows Texas builds, and the whole process, application, builder package, draws, closing, runs by phone, email, and electronic signing.
We fund VA construction across the entire state:
Start from your area: Houston VA mortgage, or browse the best neighborhoods in Texas. Call (888) 295-4055 from anywhere in the state.
Talk to Jason Noble
Before You Sign Anything
Your first call takes 10 minutes. We confirm your entitlement, calculate your BAH gross-up, and give you a real construction loan estimate — before you spend a dollar on plans, land, or a builder contract.