What are my options...."I want to build my dream home"

I'm a retired military vet and own 5ac of land in Texas. Been with USAA for 17yrs and I'm looking at my options to build my dream home. I completely understand the VA home loan process, but want to deal strictly with USAA for all financing. "Is This Possible?"


I'm at the begining so any support will greatly be appreciated. Bottomline, Does USAA deal in "constrction loans" or "new construction loans". I just want to build! HELP!




It looks like what your are asking is Does USAA do VA Construction Loans?


The answer is Yes. The two KEY things to know is:


1. Ask for a VA Construction Loan (not simply a Construction Loan or New Construction Loan).


2. The Builder MUST be "certified" by the VA.


  • Click here to view a related USAA Member Community Post.

Here is a quote from VA Pamphlet 26-7, Revised - Chapter 3: The VA Loan and Guaranty found here:




2. Eligible Loan Purposes

a. List of Eligible Loan Purposes

To purchase or construct a residence, including a condominium unit to be owned and occupied by the veteran as a home:

  • the loan may include simultaneous purchase of the land on which the residence is situated or will be situated,

  • loans may also be guaranteed for the construction of a residence on land already owned by the veteran (a portion of the loan may be used to refinance a purchase money mortgage or sales contract for the purchase of the land, subject to reasonable value requirements), and

  • the residential property may not consist of more than four family units and one business unit except in the case of certain joint loans.



Here are some additional EXTERNAL LINKS which might answer your question.


I hope I have helped you.


There is a discussion thread about this topic located here:



However, I encourage anyone with specific questions and concerns about construction loans to call and talk to an expert! 1-877-314-2255 They will be able to answer any questions and provide you with the most up to date and relevant information for your situation!


Good luck building your home!


Thank you!

I just spoke to a respresentative of USAA by calling the 1-800 phone number and they indicated that construction loans are not offered by USAA.  Can you please confirm if this is correct?

I just spoke with a mortgage expert and they said they only do construction loans for subdivisions with builders like Richmond, DR Horton, Pulte, etc.   She specifically said I would have to go through a local lender to take out a construction loan for a new build on a lot of land that I purchase.  But she did say that USAA would be more than happy to finance a mortgage after the contruction is complete.