The big picture
Part 1: Before we build
From your first call to the day you close, here’s how your Texas construction loan comes together.
Step 1 of 10 · Plan
Get pre-approved
We look at your income, credit and goals and give you a real construction budget, so you know what lot and floor plan fit before you sign anything with a Texas builder.
Step 2 of 10 · Plan
Pick your lot and builder
Lock in your land, your builder and your plans. Texas has no statewide builder license, so check experience, references and any city registration. VA no longer issues builder IDs; your builder is approved by the lender.
Step 3 of 10 · Loan setup
Apply and upload documents
Finish the application and send in your income, asset and credit documents. Applying is a soft credit pull only.
Step 4 of 10 · Loan setup
Builder contract and budget review
We review the builder’s contract, plans, specs and cost breakdown. In Texas, a homestead construction contract has to be in writing and signed by you (and your spouse, if married) before any work starts.
Step 5 of 10 · Loan setup
VA appraisal “subject to completion”
The appraiser values the finished home from your plans and specs. That future value is what the loan is based on.
Step 6 of 10 · Loan setup
Underwriting
Your file and the project are reviewed together, and any open items are listed so nothing surprises you later.
Step 7 of 10 · Approval
Approved with conditions
You get your conditional approval, and my team walks you through whatever is still needed.
Step 8 of 10 · Approval
Clear to close
Every condition is met. Your loan is fully approved and scheduled to close.
Step 9 of 10 · Close & build
One closing
You sign once, the lot is paid off (or your land equity is credited), and the construction funds are set aside. There’s no second closing later.
Step 10 of 10 · Close & build
Groundbreaking
Your builder starts work, usually with site prep and an engineered foundation suited to Texas soils.
30–60 days from application to closing
- Timelines depend on the appraisal, your documents and how quickly the builder’s paperwork comes in.
- Answering requests quickly is the easiest way to keep your closing date.
- Once you close, any change to the plans, budget or builder needs lender approval.
Part 2: From closing to move-in
Once you close, the build begins. Here’s what happens next and what to watch for.
Step 1 of 10
Your loan closes
The loan is funded and your approved plans, budget and schedule are set. Construction can start.
✓ Cleared to build.
Step 2 of 10
Meet your draw contact
A dedicated draw contact handles the builder’s payment requests and keeps you in the loop for the whole build.
✓ One point of contact.
Step 3 of 10
Draws as work gets done
Your builder is paid in stages. Each draw follows an inspection of completed work, so money never runs ahead of the house.
✓ You only pay for finished work.
Step 4 of 10
Changes and upgrades
Want to change a finish or add an upgrade? Submit a change order early so it can be reviewed and approved before the work is done.
✓ Contingency funds may cover it.
Step 5 of 10
Keep your finances steady
Hold off on new credit, big purchases and job changes until your loan converts. Your approval depends on things staying the same.
✓ We’ll check in along the way.
Step 6 of 10
Final inspection
When the build wraps up, the final inspection is done and the home gets its certificate of occupancy (or the local equivalent outside city limits).
Your homeowners insurance has to be in place before you move in, with the first year paid. In Texas, plan for wind and hail coverage.
✓ Almost home.
Step 7 of 10
Final draw
After everything is complete and approved, the last payment goes to your builder.
✓ The build is done.
Step 8 of 10
Rate float-down check
If rates have dropped, you may get a one-time chance to lower your rate before the loan converts.
✓ We’ll look at it for you.
Step 9 of 10
Conversion to your permanent loan
Your loan switches from construction to a regular VA mortgage through a loan modification. No second closing, no new closing costs.
✓ We handle the paperwork.
Step 10 of 10
Move in
Your permanent VA payment begins. File your homestead exemption with your county appraisal district so your Texas property tax savings start.
✓ Welcome home.
Tips for a smooth build
Reply to requests and e-sign documents the same day when you can.
No new credit cards, car loans or big purchases until your loan converts.
Talk with your builder regularly and visit the site.
Expect updates from my team at each milestone.
- The final draw and the conversion to your permanent loan can take up to 30 days, depending on the final inspection and paperwork.
- Before conversion, your homeowners insurance must be active (first year paid) and property taxes must be current.
- Your last interest-only payment is due at conversion and can cover up to 45 days of interest.
- Plans, budget and specs are locked at closing; any change needs lender approval.
For Texas builders: closing to completion
Building for a veteran with a VA one-time-close loan gives you an approved budget, a set draw schedule and one contact for every draw. VA no longer issues builder IDs, so experienced Texas builders can work with VA buyers once the lender approves them.
Before closing, we’ll need
- A written construction contract that meets Texas homestead requirements
- Plans, specifications and a line-item budget
- A draw schedule tied to construction milestones
- Your builder documents for the lender’s review
The veteran’s loan is approved around these documents, so getting them right up front keeps the build on schedule.
Step 1 of 7
Closing and deposit draw
At closing, up to 10% of the total cost can be released for deposits, or spread over later draws. The plans, specs and budget are approved and the project is funded.
✓ Ready to break ground.
Step 2 of 7
Your draw contact
You’ll have one dedicated contact for every draw request and question during the build.
✓ One person to call.
Step 3 of 7
Online draw requests
Submit draws, track inspections and sign documents online, with updates as each request moves.
✓ Fast turnarounds.
Step 4 of 7
Draws by milestone
Funds are released as work is completed and inspected, following the approved budget and draw schedule.
✓ Predictable payments.
Step 5 of 7
Change orders
Send change orders early so they can be approved before the work starts. Changes and upgrades are paid from available contingency funds.
✓ A simple approval process.
Step 6 of 7
Final inspection
At the end of the build, the final inspection is done and a certificate of occupancy (or equivalent) is issued.
✓ The finish line.
Step 7 of 7
Final draw
Once everything is complete and approved, the remaining funds are released.
✓ Project delivered.
Keys to a smooth project
Submit draw requests on time and complete.
Keep your draw contact in the loop.
Keep the veteran updated on progress.
Update the schedule when milestones move.
Stay inside the approved budget.
Builders
Building for a Texas veteran? Let’s talk before the contract is signed.
A 15-minute call with Shirley’s team sets up your buyer’s loan, and your draws, the right way.
Texas construction loan journey: common questions
How long does a VA construction loan take to close in Texas?
Most take about 30 to 60 days from application to closing. The appraisal, your documents and the builder’s paperwork set the pace.
Does my Texas builder need to be licensed or VA approved?
Texas doesn’t license home builders statewide, and VA stopped issuing builder IDs in 2025. Your builder is approved by the lender instead, so choose someone experienced and check references and any city registration.
Why does Texas require a signed contract before work starts?
Texas protects homesteads. When you build a home you’ll live in, the construction contract generally has to be in writing and signed by you (and your spouse, if you’re married) before work begins. My team checks this before closing.
How does my builder get paid?
Through draws. The builder is paid in stages as work is completed and inspected, following the approved budget. Up to 10% of the total cost can be released at closing for deposits.
What happens when the house is finished?
After the final inspection and certificate of occupancy, the final draw goes to the builder and your loan converts to a permanent VA mortgage through a loan modification, not a second closing. That can take up to 30 days.
When should I file my Texas homestead exemption?
Once the home is finished and you live there, apply with your county appraisal district. Disabled veterans can also apply for the Texas disabled veteran exemption at the same time.
What credit score and down payment do I need?
My team requires a minimum 620 credit score on VA construction loans. You can build with $0 down on loans up to $1,000,000; loans over $1,000,000 require 5% down.
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