Already Have a Builder? Let's See If They Qualify.

Does My Builder Need to Be VA Approved?

A VA Builder ID and a construction lender's builder approval are different things. VA Circular 26-25-1 eliminated the VA Builder ID requirement for ordinary VA-guaranteed loans on new and proposed construction, effective March 31, 2025. A VA-issued builder ID is no longer needed to issue the Notice of Value or process those loans.

That change does not remove applicable state or local licensing requirements, and lender-specific builder approval may still be required. Special programs have different rules: the circular retains the builder-ID requirement for Specially Adapted Housing (SAH) grants and Native American Direct Loans (NADLs).

When you see the phrase “VA approved builders,” ask whether it refers to the lender's review process or a specific VA program. It should not be read as VA endorsement of a builder.

What Does a Construction Lender Look For?

VA construction loan lenders may use their own builder approval standards. Requirements vary by lender, program, and project, but a review may include:

• Licensing

  Appropriate state and local contractor licensing, where required for the project.

• Insurance

  General liability coverage and other insurance required by the lender or applicable law.

• Business background

  Business background screening, which may include checks relevant to the lender's approval policies.

• Experience & financial qualifications

  Relevant construction experience and financial qualifications appropriate to the project.

• Contract & budget

  A construction contract and detailed budget for the proposed home.

• Plans & specifications

  Building plans and specifications that describe the completed project.

• Draws & inspections

  Agreement to the lender's construction draw and inspection procedures.

These are possible lender review items, not a universal VA-mandated builder checklist. Ask which requirements apply to your specific loan.

Can I Choose My Own Builder?

Veterans can generally propose their preferred builder, subject to lender approval and applicable loan requirements. A builder does not necessarily have to be on the lender's existing approved list to be considered for review.

Start the conversation before committing to a construction contract. Confirm the lender's builder review requirements, project documentation, and financing conditions before making binding commitments.

How the Builder Review Process Works

1. 01

   Identify your builder

   Choose a builder you would like to work with and discuss the proposed home.

2. 02

   Provide builder information

   The lender requests the builder's information and project documentation required by its program.

3. 03

   Complete lender review

   The lender reviews qualifications and project documentation against its own approval criteria.

4. 04

   Proceed if approved

   If approved, the builder can participate in the financed construction project, subject to the loan's remaining requirements.

The review sequence and requested documents may vary. Builder approval is not guaranteed and does not by itself mean the borrower or loan has been approved.

Frequently Asked Questions

Service Areas

Built Mortgage Team can assist eligible borrowers with VA construction financing in Virginia, North Carolina, Florida, and Washington, D.C., subject to program availability and applicable requirements.

Contact the team to discuss your location, proposed builder, and project. Availability and lender requirements must be confirmed for your circumstances.