VA Construction Loans in Florida
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
The VA allows $0-down construction financing, and we offer it in Florida. Construction adds underwriting steps a standard purchase does not have, so the details matter. Here's the FL-specific reality.
Program figures verified July 2026, details change; confirm your scenario with us.
Two paths to VA-financed new construction
Path 1. Two-close (construction loan + permanent VA takeout)
How it works: You get a short-term construction loan from a regional bank during the build (6-12 months), then refinance into a VA permanent mortgage at completion. Two underwrites, two closings, two sets of closing costs.
Pros: Most FL regional banks (Western Alliance, Bank of Florida, First Citizens) offer construction-only financing. Easier lender pool. Can lock the VA permanent rate at completion.
Cons: You pay closing costs twice. The construction loan rate is typically 1-2% higher than the eventual VA rate. Cash flow gap between construction draws and your permanent loan funding.
Path 2. Single-close (true VA construction loan)
How it works: One loan, one closing. The lender funds construction draws during the build, then automatically converts to a 30-year VA mortgage at completion. No second closing, no re-qualifying.
Pros: One set of closing costs. Rate locked at the original closing, not at completion (protects against rate increases during the 9-12 month build). Zero down still applies.
Cons: Very few lenders offer it. Most that do include modest pricing differences vs standard VA purchase. The 36-month VA recoupment rule complicates this if you later refinance.
FL reality: As of 2026, real single-close VA construction lenders serving Florida include Veterans United, Newrez, AmeriSave, and a handful of regional credit unions (Vantage West, Hughes Federal, both Tampa-based). The list changes quarterly. Mike maintains a current short list and matches Veterans to the right lender based on builder + timeline + entitlement.
Builder approval, the gate that kills most VA construction deals
Before any lender will close a VA construction loan, your builder must be VA-registered with the VA Regional Loan Center in Miami (covers all of FL). This is a paperwork process the builder does, not the Veteran. It includes:
- Builder profile + license verification (FL ROC registration)
- Surety bond proof
- Sample warranty + dispute resolution process
- Construction draw schedule template
National production builders almost always have this in place because they've done VA loans before. Custom + semi-custom builders often don't. Ask the builder for their VA Builder ID before signing the build contract. If they don't have one, the registration takes 4-8 weeks and can delay your start.
FL production builders with active VA construction lending experience
This isn't an endorsement, it's a list of builders who have closed VA construction loans in FL in the last 24 months that Mike has either personally worked with or has direct deal data on:
- Meritage Homes: Miami/Orlando/Tampa; Energy Series + Outdoor Living Series. VA-friendly sales staff.
- Lennar: statewide; Wi-Fi Certified + Everything's Included pricing model simplifies VA appraisal.
- D.R. Horton + Express Homes: Miami/Tampa/Sarasota Valley. Express is the entry-level brand that fits most E-5 through E-7 BAH brackets.
- Pulte / Centex / Del Webb: Pulte for move-up, Centex for entry-level, Del Webb for 55+ retiring Veterans. Strong Nocatee + Sun City presence.
- Mattamy Homes: Miami metro + Tampa, growing inventory in Eastmark and Whisper Ranch.
- Richmond American: Duval, St. Johns, and Clay County.
- KB Home: Miami metro entry-level + first-time-buyer focused.
Semi-custom + true-custom builders can also do VA construction, but expect a 2-4 month longer pre-construction phase to handle VA approval paperwork. Worth it for the right lot.
Construction loan timeline (typical FL project)
| Phase | Duration | What's happening |
|---|---|---|
| Pre-construction | 4-8 weeks | Plans approved, builder VA-registered, lender underwrites land + construction package |
| Foundation + framing | 8-12 weeks | First major draw at foundation; second at framing inspection |
| Mechanicals | 6-10 weeks | Electrical, plumbing, HVAC. FL summer can slow this if you start in May-July (concrete cure issues) |
| Drywall + finishes | 6-10 weeks | Third draw at drywall complete; final draw at completion |
| Certificate of occupancy | 2-4 weeks | County inspection + utility connections |
| VA appraisal + permanent loan funding | 2-3 weeks | If two-close path |
| Total | 8-12 months | Miami metro standard; Tampa + smaller cities often faster |
What the VA appraiser checks on new construction in FL
VA Minimum Property Requirements (MPRs) on FL new construction:
- Working A/C with at least 65°F cooling capability statewide: non-negotiable in FL
- Termite warranty + soil treatment Required (FL has very active subterranean termites)
- Roof life expectancy of 5+ years At appraisal, usually trivial on new build
- Defensible space In hurricane and flood-prone areas (Gainesville, Payson, Sarasota, Naples)
- Adequate setbacks from washes + 100-year floodplains: important in flash-flood-prone areas
- Working well + septic If rural; or proof of connection to county water/sewer
The single most common VA appraisal issue on Florida new construction: lot grading and drainage after heavy summer rain. If your closing falls during hurricane season (June-November), the appraiser may flag standing water or erosion where the driveway meets the garage. Easy fix; just plan for it.
The rule behind this
VA does not set a county loan limit for a Veteran with full entitlement; Public Law 116-23 removed them effective January 1, 2020. What VA does require is set out in 38 CFR § 36.4340, which covers underwriting standards, processing procedure and lender responsibility. VA Lender’s Handbook (Pamphlet 26-7), Chapter 4 carries the regional residual-income tables, and residual income is a standalone test rather than a footnote to debt-to-income, above 41% DTI the residual requirement rises 20% over the table minimum. Florida’s Department of Revenue, property-tax exemptions administers the state-level benefits that sit on top of the federal loan, and those are set by state law rather than by VA.
Frequently asked questions
Can I use my full VA entitlement on construction + buy a second home later?
Yes if your construction loan principal stays under your remaining entitlement. Most FL VA construction loans use full entitlement. You can restore entitlement later by selling + paying off the first VA loan, or with one-time-restoration if it qualifies.
Are funding fees the same on VA construction?
Yes. Standard VA purchase funding fee table applies (2.15% first use, 3.30% subsequent at $0 down). Waived for 10%+ disability rating.
Can I buy the lot first with a regular loan and add VA construction later?
Yes, and often the cleanest path. Use a regular lot loan (~$60K-$120K typical FL build-ready lot), then layer the VA construction loan on top with the lot as your "down payment equivalent." Effectively gives you zero out-of-pocket at construction start if lot equity covers the deposit.
Does the VA cap construction loan size in FL?
The 2026 conforming limit ($832,750 statewide) applies to standard VA construction. Above that you're in jumbo territory, different lender list, different rates. Mike has VA jumbo construction contacts for higher-end Fort Lauderdale + Naples builds.
Considering a VA construction loan? Mike walks Veterans through builder selection, lender matching, and timeline planning before you sign anything. Get a free 15-minute consult.