VA New Construction • NMLS #303217

Florida VA New Construction Loans — Up to $4M

Build with your VA benefit — $0 down, no monthly mortgage insurance, one closing.

Written by Keith Meredith·NMLS 303217·Division President, Black Rock Mortgage

Build the home you actually want — not the one a builder happens to have on the lot. Our Florida VA construction program goes up to $4,000,000, with $0 down, one closing, and the same VA benefits that make the program the best in the country. Here’s how it works.

Up to $4M

Loan amounts up to $4,000,000 for eligible veterans. One of the highest VA construction caps in the industry.

$0 Down

Same VA benefit — no down payment required for full-entitlement borrowers, even on the construction draw.

One-Time Close

Single closing covers the construction loan and the permanent mortgage. No second closing, no second appraisal, no re-qualification.

How a Florida VA Construction Loan Works

Most VA construction loans are ‘two-time close’ — you close once on a construction loan, then close again on a permanent VA loan after the home is built. That means double closing costs, double underwriting, and the risk of rates moving against you between closings.

Our program is one-time close. You close once. The loan funds construction in stages (called ‘draws’) as the builder hits milestones — foundation, framing, dry-in, finish work, certificate of occupancy. When construction is complete, the loan automatically converts to a 30-year fixed VA mortgage at the rate you locked at the start. No re-qualification, no surprise rate shock.

Comparing paths, or not using VA entitlement on this build? The main Florida construction loan page covers the conventional and FHA one-time-close versions of the same single-closing structure.

The Construction Process — From Pre-Approval to Move-In

Pre-approval — same as a regular VA pre-approval. We pull your credit, calculate your residual income, and issue your pre-approval letter (24 hours).
Builder approval — your builder needs to be approved by the lender. We can usually get this done in 5-7 days. Builder needs current license, insurance, and a clean reference history.
Construction contract & plans — fixed-cost contract from the builder, full architectural plans, and a draw schedule.
Closing — single closing. Loan funds first draw at closing (often the lot purchase), then subsequent draws as construction progresses.
Construction (6-12 months typical) — you make interest-only payments on the drawn portion of the loan during construction. The undrawn balance accrues no interest.
Conversion — when construction is complete and final inspection passes, the loan converts to a 30-year fixed VA mortgage at your locked rate.

Florida VA New Construction — Requirements

Requirement	Detail
Maximum loan amount	$4,000,000
Minimum down payment	$0 with full VA entitlement
Minimum FICO	580 minimum with strong compensating factors — well below what most lenders require for VA construction
Reserves required	2 months of total mortgage payment (PITIA) in savings at closing
Property type	Primary residence only — single-family detached new construction
Lot	You can own the lot already (counts as equity) or buy it as part of the construction loan
Builder	Lender-approved licensed Florida general contractor with insurance and clean track record
Construction contract	Fixed-cost contract; cost-plus contracts not eligible
Construction timeline	Up to an 11-month build, then about a month to modify into permanent financing. Builds that run past 11 months must be requalified.
Funding fee	Standard VA funding fee (2.15% first use / 3.30% subsequent at $0 down) — disability-rated veterans exempt
Loan terms	30-year fixed, including 30-year VA jumbo fixed
Entitlement	Full or split entitlement eligible
Owner-builders	Not permitted — the build must be completed by an approved third-party contractor
Cash back	None — the veteran cannot receive cash back at closing
Renovations	New construction only — an existing home cannot be renovated with this loan

What Makes Our VA Construction Different

Yes — if your income supports the payment and your credit qualifies. The $4M cap is at the top end and requires strong financials, but $0 down is preserved across the entire range thanks to full VA entitlement. Most of our VA construction borrowers build in the $400K-$1.5M range; the $4M cap exists for the high earners who need it.

Not in advance — but your chosen builder needs to be approved by the lender as part of our process. That’s a 5-7 day review of their license, insurance, and reference checks. Most established Florida residential builders sail through. If your builder has never done a VA construction loan before, that’s fine — we walk them through the draw process.

Generally no. VA construction requires a licensed general contractor as the builder of record. Self-build / owner-builder situations don’t qualify under most lender programs. There are very narrow exceptions for licensed contractors building their own home, but it’s rare.

Typically 5 draws tied to inspection milestones: (1) closing/lot, (2) foundation complete, (3) framing/dry-in complete, (4) mechanical (HVAC, plumbing, electrical) complete, (5) final/certificate of occupancy. Each draw requires an inspection. The lender pays the builder directly — money never passes through your hands.

Cost overruns are your responsibility, not the lender’s. The construction loan is locked at the contract amount. If your builder’s costs exceed the contract, you pay the difference out of pocket or with a separate loan. Avoid this by using a fixed-cost contract (which we require) and choosing a builder with a track record of staying on budget.

Yes — and this is one of the biggest reasons to use one-time close. You lock the permanent mortgage rate at the initial closing. Whether construction takes 6 months or 12 months, your rate is the same. Some of our programs offer a one-time float-down: if rates drop significantly during construction, you can re-lock at the lower rate. Not every program offers it; we’ll show you which do.

30-45 days from complete application — about the same as a regular VA purchase. The longest delays come from builder approval (if your builder hasn’t been vetted before) and finalizing the construction plans. If you have your builder, lot, and plans ready, we can move fast.

Modular homes (built in factory sections, assembled on permanent foundation): yes — they qualify as new construction. Manufactured homes (HUD-code mobile homes): different program — see our manufactured home financing page. The construction loan we describe here is for traditional stick-built or modular new construction.

About the Author

Keith Meredith

Division President, Black Rock Mortgage
NMLS 303217 · 16+ years originating · $100M+ in mortgages closed

Keith Meredith is a 16 year mortgage industry expert who has originated over $100,000,000 in mortgages. Headquartered in Ocala, Florida, Keith runs Black Rock Mortgage as a division of Coast 2 Coast Mortgage, a lender licensed in 40 states. Keith specializes in manufactured home financing, self-employed mortgages, VA construction loans, and helping first-time buyers navigate FHA, USDA, and conventional programs. He creates written and video content to help borrowers understand their financing options.

Call or text directly: 352-619-4959 · Follow Keith on X, Facebook, Instagram, and LinkedIn

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