A Benefit You Earned
When you raised your right hand and took that oath, you made a promise with no fine print. You went when called. You stayed ready when you weren’t. You put your life on the line so the rest of us could live ours.
There aren’t enough words to thank you for that. But there are benefits built specifically to honor that service — and helping NH veterans and service members use them, including the VA One-Time Close Construction Loan, is one of the ways Bookend Lending LLC says thank you.
The VA One-Time Close Construction Loan allows eligible veterans, active duty service members, and surviving spouses to build a home with zero down payment, no private mortgage insurance, and one closing. Your rate is locked before the first board is nailed, and when construction is complete your loan converts automatically to your permanent VA mortgage.
This loan is offered through Click n’ Close and originated through Bookend Lending LLC, your local NH mortgage broker.
At a Glance
| Loan Type | VA (Government-backed) |
| Occupancy | Primary Residence only |
| Units | 1-unit single family |
| Min. Credit Score | 650 (with AUS approval) |
| Max LTV | 100% |
| Down Payment | None required for eligible veterans with full entitlement |
| Max Loan Amount | Conforming loan limits apply; VA Jumbo available above that. Up to $832,750 in most NH counties; up to $962,550 in Rockingham & Strafford counties (2026 limits) |
| Construction Term | Up to 12 months |
| Loan Term | 15 or 30 years, fixed rate |
| Private Mortgage Insurance | Never required, regardless of down payment or LTV |
| VA Funding Fee | Applies — varies by service type and whether this is your first use of the VA benefit. Exempt if receiving VA disability compensation. |
| Investment Properties | Not eligible |
| Manufactured Homes | Eligible (must be new, never occupied, doublewide or larger) |
Who Is Eligible?
To use the VA One-Time Close Construction Loan you must have a valid Certificate of Eligibility (COE). Generally eligible borrowers include:
- Veterans who served the minimum active duty requirement
- Active duty service members
- Members of the National Guard and Reserves (with qualifying service)
- Surviving spouses of veterans who died in service or as a result of a service-connected disability
If you’re not sure whether you qualify, Renée Duval can help you pull your COE as part of the loan process. It’s often easier than people expect.
The VA Funding Fee
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs that helps keep the VA loan program running for future generations of veterans. It varies depending on your type of service, whether this is your first time using your VA home loan benefit, and the size of any down payment you choose to make.
If you receive VA disability compensation, you are exempt from the VA funding fee entirely. This is a meaningful savings and something many veterans don’t realize until they’re already in the process. Make sure Renée knows about your disability rating upfront so it can be factored in from the start.
The funding fee can be financed into the loan rather than paid out of pocket at closing.
How It Works: Four Phases
Phase 1 — Get It All Together
This is where the real work happens — and where having the right guidance matters most. You’ll need to confirm you qualify for the loan and obtain your Certificate of Eligibility, find a lot if you don’t already have one, select a builder, choose house plans, work through the specifications, and get a finalized bid from your builder.
Our Construction Resource Center offers tips and tools to help you navigate this early stage. And feel free to reach out to Renée Duval directly — she’s guided many NH borrowers through the construction process and can help you understand what to expect before you ever formally apply.
Phase 2 — Close Once
Your credit is underwritten, the builder is approved, and both your construction and permanent loan terms are set before you sign a single document. You close one time. The lot is paid off at closing. If you already own the lot, its equity can be used toward closing costs.
As with FHA, the construction interest, soft costs, and any concessions must be factored into the final contract price before the appraisal is ordered. This sequencing is critical — get it right and the process flows smoothly.
Phase 3 — Construction Draws
Once closed, your builder requests draws through Trinity Loan Administration as work is completed. Funds are never advanced for materials — only for completed work. Up to 6 draws are included for site-built homes. Additional draws are available at $295 each. An independent inspector confirms progress before each draw is released. Funds are typically wired to the builder within 24 hours of approval.
Phase 4 — Conversion
When construction is complete, a final inspection is done, title is updated, and your loan automatically converts to your permanent VA mortgage. Your first full principal and interest payment begins the month after conversion. No second closing. No requalifying.
What You Pay During Construction
With the VA OTC, construction interest accrues only on funds actually disbursed — not on the full loan amount. Unlike the Conventional OTC where interest is billed monthly, VA construction interest is collected at closing and built into the loan structure from the start. This means you won’t receive monthly interest statements during the build.
You will escrow for taxes and insurance from day one, so those amounts are included in your monthly obligations during construction. You are not responsible for full principal and interest payments until after construction is complete and the loan converts to permanent financing.
Your Rate
Your permanent rate is locked at closing. The initial rate is higher than the going rate for a regular VA purchase loan. However, within 30 days of closing you can float down to market rate (plus 0.25%). So if rates stay the same or even go up a little during construction, you will benefit from a lower final rate.
Rates are based on either a 6-month, 9-month, or 12-month construction period. The longer the construction period, the higher the rate. But it’s important to be realistic because repricing an expired rate can be expensive, especially if rates have gone up.
What Homes Qualify
Eligible: Site-built homes, modular homes, manufactured homes (new, never occupied, doublewide or larger), and panelized homes (treated as site-built). Pre-starts considered on a case-by-case basis.
Not eligible: Log homes, metal homes, post-frame homes. No self-builds. No 2–4 unit properties. No investment properties.
VA Inspection Requirements
VA new construction follows the same inspection framework as FHA. How requirements are satisfied depends on your town.
If your town has a local building inspector (which is the case in most NH municipalities): A building permit issued prior to the start of construction, plus a Certificate of Occupancy at completion, satisfies the requirement. Three stage inspections — footing, framing, and final — performed by the local authority also work.
If your town does not have a local building inspector (which applies to some smaller NH towns): Three inspections must be performed by an ICC-certified Residential Combination Inspector (RCI) or Combination Inspector (CI), or by a registered architect or structural engineer.
Confirm your town’s inspection setup early — before construction begins — so there are no surprises at the finish line.
Builder Requirements
The builder must be registered and accepted by Click n’ Close before the loan can close. Builder approval typically takes 3–5 business days and is valid for 6 months. As of March 2025, a separate VA Builder ID is no longer required — the builder goes through Click n’ Close’s standard review process only.
In New Hampshire, general contractors are not licensed at the state level. However, the builder must demonstrate a track record of completed projects, carry the appropriate insurance, and be in good standing with suppliers and subcontractors. The borrower may not perform any of the construction work. Only one builder/contractor is allowed on this program.
The builder will need to provide:
- Current YTD Profit & Loss statement
- Prior year corporate tax return
- Most recent corporate bank statement
- Executive summary of company and principals’ experience
- Builder’s license(s) where applicable (retailer, installer, etc.)
- Certificate of General Liability Insurance (Acord 25 Form) — minimum $1,000,000 per occurrence, with Click n’ Close listed as certificate holder
- Builder’s Risk Insurance with Click n’ Close as certificate holder
- Fixed-price construction contract (no cost-plus contracts)
- Plans, specs, and elevations
- Line-item cost breakdown
- Plot plan
- Permit Advisory
- VA Builder’s Warranty (VA Form 26-1859) — 1-year warranty signed by builder and buyer at closing
- Signed VA construction packet forms
Key Program Rules
- The loan amount cannot be increased after closing. Cost overruns are paid out of pocket by the borrower directly to the builder.
- No appraisal transfers — a fresh appraisal is required. The appraisal must reflect the as-completed value and cannot be ordered until the calculation form is complete and the contract addendum is executed.
- No work may begin prior to closing — by the borrower or the builder.
- If construction extends beyond the locked term, the rate will reprice to current market.
- Cost-plus contracts are not allowed.
- A 10% contingency reserve is included and may be financed if supported by the appraisal.
- Weather holdbacks are permitted; holdbacks for non-weather incomplete items are not.
Program Fees (VA OTC)
- CNC Admin Fee: $1,099
- 1% Construction Fee (on loan amount — financed into loan, not paid at closing)
- Construction Admin Fee: $750
- Feasibility Study: $195
- Draw Inspections: $295 per draw (up to 6 draws)
- Final Inspection: $250
- Title Update: $300 or actual cost
- VA Funding Fee (varies — exempt if receiving VA disability compensation)
- Plus all typical fees associated with any mortgage loan
NH Site Considerations — Read This Before You Buy Land
Building in New Hampshire means thinking through your site before you ever sign a purchase contract. Here are the questions you need answered early.
Public water and sewer, or well and septic?
If your lot is not served by municipal water and sewer, you will need a private well and/or septic system. This is common across much of NH — rural towns, lakefront properties, and large parcels often rely entirely on private systems.
If you will need a septic system, the design must be approved by the NH Department of Environmental Services (NHDES) before the loan can close. Septic design approval is site-specific and can take time, so start this process early. You can find information on the NHDES subsurface program at des.nh.gov.
Well and septic placement matters.
If your lot will have both a private well and a septic system, the placement of all three — the well, the home, and the septic field — must comply with NH setback requirements. Wells must be a minimum distance from septic systems, property lines, and the home itself. Your plot plan must reflect these setbacks, and the lender will need a well and septic certification before the loan converts to permanent financing.
Road access.
The property must be accessible by a paved or all-weather road that meets local standards.
Important: No work — by the borrower or the builder — may begin prior to closing. Site clearing, grading, or any construction activity before closing will disqualify the project.
Ready to Build?
You served. You sacrificed. Now let Bookend Lending LLC help you use the benefit you earned. We’ll walk you through whether this program fits your land, your builder, and your timeline — before you ever formally apply. Call us or get a quote to start the conversation.
Bookend Lending LLC, NMLS #2557411, is an independent mortgage broker licensed in New Hampshire. Construction financing offered through Click n’ Close, Inc. This is not a commitment to lend. All loans subject to borrower qualification, VA eligibility requirements, and program availability. VA loans are subject to VA guaranty limits and funding fee requirements. Programs and rates subject to change without notice.