You Served. Now Build the Home You Earned.
Sub-headline: The VA One-Time Close construction loan is the single most powerful new-construction benefit in American mortgage lending. No civilian loan touches it. Zero down. Zero payments during the build. Up to $4,000,000 on a single 30-year fixed note. And most banks will never tell you it exists.
You Served. The VA Built This For You. Use It.
You took an oath. You wore the uniform. Maybe you're still wearing it. Whether you're active duty at your fourth duty station, a retired E-8 ready to plant roots, a Reservist juggling two careers, or a surviving spouse carrying your veteran's entitlement forward — the Department of Veterans Affairs created the VA construction loan specifically so you could build a forever home on YOUR terms, not the bank's.
Civilian buyers can't touch this. Their best new-construction option requires 5% down and a 700+ FICO [Source: otc_construction_uwm.md line 9, 11]. Yours? Zero down. 620 FICO floor. Up to $4,000,000 in financing. Zero payments while the home is being built. [Source: otc_construction_uwm.md lines 25, 27, 28, 31]
Read that again. No payments during construction. The interest accrues into the loan. You don't pay rent AND a mortgage on a half-built house. The VA structured it this way because they know what deployment, PCS moves, and service life actually cost a family.
What Civilian Banks Tell Veteran Builders (And Why They're Wrong)
Walk into a regional bank and ask for a construction loan to build your forever home. Here's what you'll hear:
- "We'll need 20% down on the land."
- "Construction loans are short-term — you'll refinance into a permanent mortgage later, and we'll re-qualify you then."
- "You'll make interest-only payments every month during construction." [Source: otc_construction_uwm.md line 17 — note: this is the CONVENTIONAL structure]
- "Your loan limit is the conforming county cap."
- "We need a 700 FICO." [Source: otc_construction_uwm.md line 11]
Every single one of those statements is true — for civilians. None of them apply to a veteran using a VA OTC construction loan. The bank rep isn't lying. They just don't have the VA product on their shelf, so they steer you to what they DO have. That's how you end up paying tens of thousands more for a worse loan when a better one was sitting in your DD-214 the whole time.
The $0 Down + $0 Monthly Math (Read This Twice)
Picture a $500,000 build. Land, plans, vertical construction, the whole project. Here is what each loan actually demands from your bank account:
Conventional OTC on a $500K build
- Down payment at closing: $25,000 (5% minimum) [Source: otc_construction_uwm.md line 9]
- Interest-only payments during the 11-month build: owed every month [Source: otc_construction_uwm.md line 17]
- Minimum FICO: 700 [Source: otc_construction_uwm.md line 11]
- Loan terms: 15-yr fixed, 30-yr fixed, 7/6 ARM, 10/6 ARM [Source: otc_construction_uwm.md line 13]
VA OTC on a $500K build
- Down payment at closing: $0 (100% financing) [Source: otc_construction_uwm.md line 25]
- Monthly payments during the 11-month build: $0 — interest rolls into the loan [Source: otc_construction_uwm.md line 31]
- Minimum FICO: 620 [Source: otc_construction_uwm.md line 27]
- Loan term: 30-year fixed (Jumbo eligible up to $4,000,000) [Source: otc_construction_uwm.md lines 28, 29]
That's a $25,000 cash difference at the closing table and eleven months of construction-period payments you simply do not make. If a conventional interest-only payment on that build would run roughly $2,400/month, that's another ~$26,400 of cash flow the VA borrower keeps in checking during the build. Combined with the down payment, the VA OTC borrower walks into the same $500,000 home with more than $50,000 of liquidity still in hand compared to the conventional path.
We did not invent this. It's the program.
Side-by-Side: Conventional OTC vs VA OTC
Both columns below come from the same verified source file dated 2026-04-04.
| Term | Conventional OTC | VA OTC |
|---|---|---|
| Down Payment | As low as 5% [line 9] | 0% (100% financing) [line 25] |
| Max LTV | Up to 95% LTV/CLTV/HCLTV (primary) [line 10] | Up to 100% LTV/CLTV/HCLTV [line 26] |
| Minimum FICO | 700+ [line 11] | 620+ [line 27] |
| Loan Amounts | Conforming + High Balance by county [line 12] | Up to $4,000,000 [line 28] |
| Loan Terms | 15-yr, 30-yr, 7/6 ARM, 10/6 ARM [line 13] | 30-year fixed, Jumbo [line 29] |
| Build Period | 11 months + 1-month mod [line 14] | 11 months + 1-month mod [line 30] |
| Payment During Build | Interest-only monthly [line 17] | No payments during build period [line 31] |
| Builder | Granite-approved [line 42] | VA Registered Builders list + Granite [line 32] |
| Single closing | Yes [line 57] | Yes [line 57] |
| Float-down | Automatic if market improves [line 58] | Automatic if market improves [line 58] |
Look at the "Payment During Build" row. That single row is the entire reason this loan exists. It is the only construction product on our shelf where the borrower is not writing a check every month while still paying rent or carrying a current mortgage. Call for current rates.
The Seven Steps From "I'm Thinking About Building" to "I Have the Keys"
Here is the entire VA OTC process, in the exact order it happens. At each stop you'll know what you do, what Homestead Capital Partners does, and what UWM (your lender) does.
Step 1 — Verify Your VA Eligibility (Certificate of Eligibility)
You need a Certificate of Eligibility (COE) from the VA. Most veterans qualify after 90 days of active wartime service or 181 days of peacetime service. Reservists, National Guard, and surviving spouses have their own paths. You do: request the COE through the VA eBenefits portal, or hand us your DD-214. HCP does: pre-qualify you — the VA OTC requires 620+ FICO and supports loans up to $4,000,000 [Source: otc_construction_uwm.md lines 27, 28]. UWM does: nothing yet.
Step 2 — Find a VA-Approved Builder
UWM uses a third-party construction risk manager called Granite, and your builder must be approved by Granite before underwriting begins. For a VA loan, the builder must also be on the VA Registered Builders list [Source: otc_construction_uwm.md lines 32, 42]. We'll check both lists. If your preferred builder isn't on Granite yet, we help them apply — approval typically takes a couple of weeks. Borrower cannot act as the builder [Source: otc_construction_uwm.md line 44].
Step 3 — Scope of Work + Contract Review
Your builder produces the Scope of Work — plans, specs, cost breakdown, timeline. You sign the construction contract. HCP reviews the contract for change-order clauses, cost-overrun protections, and draw-schedule alignment with UWM's requirements. UWM runs its Project Review and Contract Review under its broker-channel fee schedule [Source: otc_construction_uwm.md lines 51-52].
Step 4 — UWM Appraisal + Loan Approval (One Application)
This is where One-Time Close earns its name. In a traditional construction loan, you'd apply twice. With OTC you apply once: one interest rate, one down payment, one credit report, one approval [Source: otc_construction_uwm.md line 57]. UWM orders the as-completed appraisal (the appraiser values the home as if it were already finished from the plans) and underwrites the file. The VA loan amount cannot exceed total acquisition cost including the financed VA funding fee [Source: otc_construction_uwm.md line 28].
Step 5 — Closing (Single Transaction, Rate Locked)
You sign once. You sign the construction loan and the permanent mortgage in the same set of documents. You bring no down payment [Source: otc_construction_uwm.md line 25]. You'll pay standard third-party costs, and the VA funding fee can be financed into the loan. The float-down is armed the moment you sign: if rates drop before you move in, UWM automatically modifies your rate at completion [Source: otc_construction_uwm.md line 58].
Step 6 — Construction (11 Months, No Payments)
Your builder breaks ground. The build period is 11 months max plus a 1-month modification period [Source: otc_construction_uwm.md line 30]. And here's the line that surprises every first-time veteran builder: you make no payments during construction — interest accrues and rolls into the loan [Source: otc_construction_uwm.md line 31]. UWM manages the draw schedule, sends inspectors at each milestone, and handles builder communication, checklists, draw management, and inspections directly [Source: otc_construction_uwm.md line 60]. There is a $290 draw fee per draw [Source: otc_construction_uwm.md line 50].
Step 7 — Modification + Move In
Construction completes. Certificate of occupancy is issued. The loan modifies automatically from construction to permanent 30-year fixed. Same loan number. No re-qualifying. No second appraisal scramble. Note: credit documents cannot exceed 12 months at modification [Source: otc_construction_uwm.md line 61] — which is why the 11-month build window matters. You move in. You're home.
Total timeline from first call to keys: typically 13–14 months. About 6–8 weeks of pre-construction (Steps 1–5), the 11-month build, and the 1-month modification.
Eligibility — Are You In?
- VA entitlement. Valid Certificate of Eligibility required. Active duty, qualifying veterans, Guard/Reserve with qualifying service, and surviving spouses of service members who died in the line of duty or from a service-connected disability may all qualify. We can help you pull your COE.
- 620+ FICO [Source: otc_construction_uwm.md line 27]
- Loan amount up to $4,000,000, not to exceed total acquisition cost including the financed VA funding fee [Source: otc_construction_uwm.md line 28]
- Builder on the VA Registered Builders list AND Granite-approved before underwriting [Source: otc_construction_uwm.md lines 32, 42]
- Borrower cannot be the builder [Source: otc_construction_uwm.md line 44]
- Primary residence, single-family. Ineligible property types: co-ops, attached condos, manufactured homes, ADUs, and Texas 50(a)(6) properties [Source: otc_construction_uwm.md lines 35-39]
- DTI must include your current mortgage payment unless you're selling before closing [Source: otc_construction_uwm.md line 62]
Veteran FAQ
1. How much do I need at closing?
For the down payment, zero [Source: otc_construction_uwm.md line 25]. You'll still have standard third-party costs (appraisal, title, inspection, recording) and the VA funding fee, which can be financed into the loan up to the $4M cap [Source: otc_construction_uwm.md line 28].
2. Do I really make ZERO payments during construction?
Yes. The VA OTC product allows no payments during the build period — interest accrues and rolls into the loan [Source: otc_construction_uwm.md line 31]. Your conventional-OTC neighbor is writing an interest-only check every month [Source: otc_construction_uwm.md line 17].
3. I already used my VA loan once. Can I use it again to build?
In many cases, yes. VA entitlement can be restored or used in tiers. Bring your COE and we'll map it. Surviving spouses of service members who died in the line of duty or from a service-connected disability are also often eligible.
4. How big can this loan get, and what's the minimum FICO?
Up to $4,000,000 on a 30-year fixed Jumbo structure [Source: otc_construction_uwm.md lines 28, 29]. The credit floor is 620 [Source: otc_construction_uwm.md line 27] — a 640 FICO clears it comfortably.
5. What if rates drop while my house is being built?
The program includes an automatic rate float-down at completion if the market improves [Source: otc_construction_uwm.md line 58]. You don't have to ask. You don't have to refinance. It just happens.
6. What if my builder isn't on the VA Registered Builders list or Granite-approved?
They'll need to be added before underwriting [Source: otc_construction_uwm.md lines 32, 42]. We can walk a qualified builder through both registration processes — it typically takes a couple of weeks.
7. Can I act as my own builder to save money?
No. Borrower cannot be the builder [Source: otc_construction_uwm.md line 44], and the builder must be both VA-registered and Granite-approved.
Start Your VA OTC Build — Veteran Intake
[Intake form: hidden field audience_type=va_otc — to be wired to OTC sales team]
- Full name
- Best phone (call/text)
- VA eligibility status (Active Duty / Veteran / Reserve-Guard / Retired / Surviving Spouse)
- Branch of service (Army / Navy / Air Force / Marines / Coast Guard / Space Force)
- Certificate of Eligibility on hand? (Yes / No / Need help pulling it)
- Target loan amount
- Target build location (city, state, county)
- Have you identified a builder? (Name if yes / Need referral / Shopping)
- Estimated FICO range
- Current housing situation (renting / current mortgage / selling)
- Estimated build start
- Best time to call
Submitting this form does not constitute a loan application or commitment to lend. A licensed Homestead Capital Partners loan officer will respond within one business day with a written eligibility read.
Next Step: One Phone Call
Pull your DD-214. Pull your COE if you have one (we'll help if you don't). Then call us, or submit the form above. We'll verify your entitlement, walk you through the $0-down math on YOUR target build, and tell you honestly whether VA OTC is the right tool for your situation.
You earned this benefit. Don't let a bank rep who doesn't carry the product talk you out of using it.
[BUTTON: Start Step 1 — Get My COE Verified]
[BUTTON: Talk to a VA Construction Specialist]
Homestead Capital Partners | NMLS #2587985 | Loan Originator NMLS #1660690 | Equal Housing Lender
All loan terms, LTVs, FICO floors, loan amounts, build periods, and payment-during-build language above are sourced exclusively from Homestead Capital Partners' verified offer sheet dated 2026-04-04, which compiles publicly available program guidelines from United Wholesale Mortgage (UWM) and Freeley Mortgage (UWM broker channel).
VA loans are subject to additional U.S. Department of Veterans Affairs eligibility requirements, occupancy requirements, funding fees, and program rules. VA loan benefits are not available to all borrowers and are governed by VA regulations in addition to standard federal mortgage regulations. Certificate of Eligibility required. Not all applicants will qualify. Loan amounts, terms, and program availability subject to change without notice. This is not a commitment to lend. All loans subject to underwriting approval, credit, income, asset, appraisal, builder approval (Granite + VA Registered Builders list for VA OTC), and property eligibility. Builder must be approved by Granite and listed on the VA Registered Builders list prior to underwriting. Borrower may not act as the builder. Ineligible property types: co-ops, attached condos, manufactured homes, ADUs, and Texas 50(a)(6) properties. Rates and terms subject to change without notice.
Reg Z / TILA Disclosure. This article references specific down payment percentages (0% VA / 5% conventional) and an illustrative $500,000 build scenario for educational comparison only. No specific interest rate, APR, finance charge, or payment amount is quoted. Actual rate, APR, monthly payment, total finance charge, and total of payments will be disclosed on a Loan Estimate provided after a complete application is submitted, in accordance with 12 CFR § 1026 (Truth in Lending Act). Examples shown are illustrative, not an offer of credit, and do not include taxes, insurance, or the VA funding fee. Your actual terms will depend on credit, loan amount, property, occupancy, and program eligibility.
Homestead Capital Partners is not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs or any government agency.
Verified source file: /home/paul/_database/jhoward/www.website/home-loans/verified_offers/otc_construction_uwm.md (UWM + Freeley Mortgage, verified 2026-04-04)