Ground Up Construction - Single Family Homes

The VA One-Time Close construction loan extends the full benefits of VA financing to new construction — including no down payment and no monthly mortgage insurance. Like the conventional version, the loan closes once, covers the construction period, and converts automatically to permanent financing at completion. No second closing, no requalification, and no additional closing costs at modification.

Available exclusively to eligible veterans, active-duty service members, and qualifying spouses. The VA funding fee applies and is based on total acquisition cost — land plus construction. Note that the construction period is backed out of the loan term, so a 30-year loan with a 10-month build converts to a 29-year 2-month permanent loan.

The process follows five stages with a few VA-specific requirements.

1. First, we verify eligibility and obtain your Certificate of Eligibility — this confirms your entitlement and is required before the loan can proceed. We handle this step directly and it typically takes one to three business days.
2. Second, we submit for credit approval and lock your rate — the VA funding fee is calculated at this stage based on your total acquisition cost including land and construction.
3. Third, the contractor and project are submitted for approval — the builder must be VA-approved and underwriters review credentials, construction contract, cost breakdown, and plans before issuing project approval. A guaranteed price contract is strongly recommended to protect against budget overruns since the VA does not permit the borrower to receive cash back at any stage.
4. Fourth, the loan closes — the initial draw funds at closing and covers land acquisition, contractor mobilization, interest reserve for the construction period, property insurance, title fees, and draw fees, all of which are included in the builder budget rather than paid out of pocket at closing.
5. Fifth, draws are released as work is completed and inspected throughout the build. When construction is complete and the Certificate of Occupancy is issued, underwriting orders the final inspection and appraisal update — once confirmed, the loan modifies to permanent financing. The construction period is backed out of the loan term, so your 30-year permanent loan begins from the modification date. No second closing, no requalification, no additional closing costs.

For non-owner-occupied ground-up construction, Bastion acts as the correspondent lender backed by an institutional capital source. This is a business-purpose loan structured around the project economics — qualification is based on the land value, construction budget, and after-completion value of the asset rather than personal income or tax returns.

Ground-up construction loans require upfront feasibility review, permit validation, and an approved guaranteed price contract for projects over $1 million. Bastion works directly with borrowers through the entire process from budget review to final draw — one point of contact from application through Certificate of Occupancy.

This program is designed for experienced developers with a documented track record. Experienced and institutional borrowers receive the most favorable leverage and terms — the more projects you have completed, the stronger your position at the table.

If you're newer to ground-up construction and don't yet have the track record this program requires, we maintain direct relationships with private lenders who work with less experienced borrowers. We can evaluate your project and personally pitch it to the right capital source on your behalf — the same deal structure, just a different path to funding. Contact us to discuss where your project fits.

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