New Construction
Using a VA Loan for New Construction in San Antonio
Tami Price
8 min read Updated September 23, 2026.
New Construction
Tami Price
8 min read Updated September 23, 2026.
Veterans can use a VA loan for new construction in San Antonio. Since March 31, 2025, the VA no longer requires builders to register, so lenders qualify builders directly. A standard VA purchase on builder inventory typically closes in about 30 to 45 days with a Texas VA appraisal around 8 to 10 business days, and the timeline is managed backward from the PCS report date.
Yes, veterans can use a VA loan for new construction in Texas, including homes built by a production builder under contract. Since March 31, 2025, the VA no longer requires builders to register for a VA Builder ID, so the approval question shifted from the VA to the lender. This guide covers the process, the timeline, and the parts of a new build that VA financing treats differently.
Under VA Circular 26-25-01, effective March 31, 2025, the VA eliminated the Builder ID registration requirement. Builders no longer register with the VA, and any builder that meets state and local licensing requirements can sell to a veteran using VA financing.
Texas has no statewide general contractor license, so lenders qualify builders directly against their own standards, typically recent Texas project history, a fixed-price contract, and VA-compliant plans. The practical effect in San Antonio: the builder you are considering does not need to appear on a VA list, but the lender does need to be satisfied with the builder before underwriting moves forward.
The first is the standard VA purchase loan on a home already built or under construction by the builder. This is the route most San Antonio buyers use on spec homes and model-line inventory, and it follows the same process as any VA purchase: Certificate of Eligibility, lender preapproval, VA appraisal, and minimum property requirements.
The second is a VA one-time-close construction loan for a custom build, where a single loan covers construction and the permanent mortgage in one closing. It is a different product with different requirements, and it makes sense mainly for buyers who cannot find what they need in builder inventory.
A VA appraisal in Texas typically takes about 8 to 10 business days, and can run longer. For a move-in ready home, a well-prepared VA purchase can close in roughly 30 to 45 days, which fits a PCS window if the file is ready early. On a to-be-built home, the completion schedule is set by the builder, not the lender, so the calendar risk belongs to construction, not financing.
Tami works the calendar backward from the report date: preapproval and Certificate of Eligibility first, contract and appraisal next, and a closing date that leaves buffer before the household has to be in San Antonio. On a PCS the start date is fixed, so the buffer is planned before the contract is signed, not after.
The VA requires the home to meet minimum property requirements, same as any VA purchase, and the finished home is reviewed as part of the appraisal. Construction overruns are not funded by the VA on a to-be-built contract: the loan is based on the contract price, so changes and upgrades that raise the cost generally come out of the buyer's pocket or require a renegotiated contract.
Occupancy is part of the deal too. The VA benefit requires the veteran to actually live in the home, generally within 60 days of closing, which is a practical consideration for a household still stationed elsewhere while the home is under construction.
Incentives, closing cost credits, and rate buydowns are a normal part of San Antonio new construction, and they are also handled carefully in a VA transaction. They must be disclosed to the lender, and the VA appraisal is based on comparable sales rather than the contract price, so even a generous incentive package does not automatically translate into appraised value.
A deal carrying heavy incentives can appraise below contract price even when the base price seems reasonable, and that triggers the same low-appraisal process as a resale. Tami reviews the incentive structure with buyers before the contract is signed so the numbers hold up in the appraisal.
The on-site agent at a builder's model home represents the builder, not the buyer. In a VA transaction the stakes are higher, because the appraisal, the timeline, and the incentive disclosure all need someone looking out for the veteran's side.
Tami represents buyers in new construction across San Antonio, including VA purchases from national and regional builders, and she handles the timeline, the appraisal, the completion inspection, and the financing coordination so the process does not add uncertainty to a PCS.
Yes. Veterans can use a VA loan for a completed or builder-built home under a standard VA purchase loan, and a VA one-time-close construction loan is available for a fully custom build.
No. VA Circular 26-25-01, effective March 31, 2025, eliminated the VA builder registration requirement. Builders no longer register with the VA; instead the lender qualifies the builder directly.
A Texas VA appraisal typically takes about 8 to 10 business days, and a move-in ready VA purchase can close in roughly 30 to 45 days. On a to-be-built home, the builder's completion schedule, not the lender, sets the closing date.
Yes, in two ways: a standard VA purchase contract on a home the builder will build for you, or a VA one-time-close construction loan that covers construction and the permanent mortgage in a single closing.
In most cases no down payment is required when there is sufficient entitlement, the same as a VA purchase on a resale home. A one-time VA funding fee applies to most borrowers and can be paid at closing or financed into the loan.
The model home agent represents the builder, so a buyer's agent represents the buyer's side of the contract, the incentive disclosure, the appraisal, and the timeline. In a VA transaction, representation also covers the VA-specific requirements.
Have a question about your situation?
Every move is different. Tell Tami where you are in the process and she will give you a direct answer based on the current market.
Military procedures, VA financing, and market data change over time. These are the current references for the details in this article:
About the author
Tami Price
Tami Price is a U.S. Air Force veteran, Military Relocation Professional, and Broker Owner of Tami Price Properties. She has two decades of San Antonio real estate experience, more than 1,000 completed transactions, more than $270 million in career sales, and approximately 50 transactions a year, with a focus on military relocation around Joint Base San Antonio.
More about Tami Tami Price is a U.S. Air Force veteran and Broker Owner of Tami Price Properties, helping military families across San Antonio and Joint Base San Antonio.
More about Tami