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The Mortgage Sensei
Virginia mortgage tools

Build in Virginia: Construction Loan and Builder Check

See how your payment moves while the house goes up, then run your builder through a checklist before you sign.

Your build

Land

$
$

Lenders set the minimum for construction loans. Ask what applies to you.

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Loan term, years

Ask your builder for a schedule in writing. Weather, permits and supply delays stretch it.

Check your builder

Tick what you have in writing

    Look up a Virginia contractor license

    The state's license lookup shows the license class, status and any recorded discipline for a name or license number.

    Estimate

    Payment after your home is finished

    $0/mo

    Month 1After
    Total project
    $0
    Loan amount
    $0
    Month 1 payment
    $0
    At full draw
    $0
    Interest while building
    $0
    Cash you bring
    $0

    Price out your build with Duane

    An estimate only, not a Loan Estimate. It assumes the loan is drawn evenly over the build and you pay interest only on what has been drawn. Taxes, insurance, mortgage insurance, fees and any rate change are not included.

    How a construction loan works

    You are paid out in stages as the house is built, so the payment grows as more is drawn. Here is the usual path, with typical timing that varies by project.

    1. Plans, builder and land. Settle the plans, the budget and a licensed builder. Weeks to months.
    2. Builder contract. A written contract with a fixed price and schedule makes underwriting easier.
    3. Underwriting. The lender reviews you, the builder, the plans and the appraisal of the finished home.
    4. Closing. You sign, and the lender sets up the construction account. Ask whether the rate can be locked now.
    5. Construction and draws. The lender releases money in stages after inspections. You pay interest on what has been drawn.
    6. Completion. After the final inspection and certificate of occupancy, payments switch to principal and interest.

    Construction loan FAQ

    Do I pay principal while the house is built?

    Usually not. Payments during construction are commonly interest only, on the amount drawn so far. After completion, regular principal and interest begin.

    Can I use land I already own as my down payment?

    Often, yes. The equity in the lot may count toward the down payment, and the lender confirms the value. This tool assumes owned land is paid off.

    Does my builder need a license in Virginia?

    Yes. Virginia licenses contractors through the Department of Professional and Occupational Regulation (DPOR), by class, based on project size. Lenders also review the builder, so expect to supply the license, insurance and references.

    Can I be my own builder?

    Many lenders do not finance owner-built homes. If you plan to, ask before you buy land or sign anything.

    What if the build costs more than planned?

    Overruns are common. Ask how the lender handles them, keep cash or a contingency in your budget, and avoid changing plans midway if you can.

    What if the build runs late?

    Ask what happens to the loan and the rate if the schedule slips. Terms differ by lender and program.

    Which programs can I use?

    It depends on the lender and your situation. Duane can walk through what is available for your Virginia build.

    Duane Buziak, NMLS #1110647. Licensed in VA, TN and GA. Brokered through Coast2Coast Mortgage, NMLS #376205. For illustration only. Not a loan offer, commitment or rate quote. Construction financing availability, terms and requirements vary by lender and program. This page does not endorse or vouch for any builder. Equal Housing Opportunity.