Using a VA Loan on New Construction in North Phoenix

I walk a lot of model homes in North Phoenix with veterans who are about to sign a builder's registration card. The payment on the flyer looks low. The VA rules do not show up on the granite. I recorded a 2026 video on how I look at a North Phoenix new build. I am not ranking neighborhoods in this article. This is the loan, the paperwork, and the costs people forget.

The model is not the price you are buying

The first mistake is treating the model's price as the house. Flooring, cabinets, counters, window coverings, appliances, and the backyard are often extra. Two similar base prices can land far apart once you add what you actually want.

Write down the base price of the exact plan and homesite, the upgrades you will not skip, and the monthly payment your lender gives you on that total with the funding fee included if you finance it. If the home is still a dirt lot, ask which houses are already under roof, and ask what happens to your earnest money and rate lock if the completion date moves. That answer belongs in the contract and in an email from the lender, not in a verbal promise at the design center.

What the VA charges on a purchase or a build

The VA funding fee is a one-time charge on a VA-backed loan. It is not monthly mortgage insurance. VA.gov, updated October 5, 2026, says the fee can be paid at closing or financed into the loan. On a purchase or a construction/permanent loan, the funding fee is the only charge the VA lets you roll into the loan. Everything else is due at closing.

For purchase or construction loans closing on or after April 7, 2023, VA.gov lists these rates for veterans, active-duty members, and National Guard and Reserve members. The percentage applies to the loan amount, not the sticker price.

You skip the fee if you receive VA compensation for a service-connected disability, if you were eligible for that pay but took retirement or active-duty pay instead, if you are a surviving spouse on Dependency and Indemnity Compensation, if you have a proposed or memorandum rating before closing, or if you are on active duty and show a Purple Heart on or before closing. A later award can mean a refund in some cases. Your lender reads this off the Certificate of Eligibility. I do not guess it.

If you have used the benefit before, read how entitlement actually works before you assume the first-use fee applies. Have a lender run a conventional quote next to it. I will not tell you which payment wins without your numbers.

Builder credits and the 4 percent line

A builder may offer a closing-cost credit, an upgrade package, or a temporary rate buydown. I am not quoting a dollar figure from any community. On November 2, 2026 those offers changed by homesite and by whether you use the builder's lender. Get it in writing, including what you give up.

Then set it next to the VA rule. VA.gov says sellers and builders may pay closing costs, and the VA does not cap those credits. It does cap seller concessions at 4 percent of the reasonable value on the Notice of Value. Concessions include a credit for the funding fee, paying off debt, or prepaying hazard insurance. The VA's buydown page says a builder- or seller-funded temporary buydown is a concession under that same 4 percent cap.

A credit toward ordinary closing costs and a 2-1 buydown are not the same bucket. Your lender sorts that before you sign. If the pretty rate only lasts two years, and only with one lender, ask for the year-three payment in writing.

The appraisal is a value and a condition check

A VA appraiser reports value and checks minimum property requirements. VA.gov is plain: that visit is not a home inspection. Order your own. On a house that is not finished, the lender decides when the appraisal happens and what still has to be done before you close. Ask whether the file is a construction-to-permanent loan or a purchase that closes when the house is done. I do not promise a one-time close.

If the value comes in short, VA.gov gives you three options: a reconsideration of value with real comps, a lower price, or cash for the difference. The loan stops at the lower of the appraised value and the purchase price. That rule is on the VA entitlement page, updated August 12, 2025.

Minimum property requirements are the standard in VA Lenders Handbook Chapter 12: the house has to be fit to live in, with utilities that work and a roof that keeps water out. Paint color is not the point. If the lot has a well or septic instead of city water and sewer, or if you need to know whether a termite report is required, tell the lender before you write. Several of those certificates are only good for 90 days. I will not guess the termite-map color for a lot I have not seen.

Bring your own agent to the first visit

The sales counselor works for the builder. Many offices ask you to sign in on the first visit and ask if you have an agent. If you want your own agent on the file, ask that office, before the visit, how they register one. I will not invent a state law that says you lose representation if you walk in alone. I have watched offices refuse to add an agent after the file was opened without one. Call or text 602-554-8731 before you go. Resale steps are in buying in North Phoenix as a veteran. Listings start on the North Phoenix page.

The costs that are not in the base price

Three items sit outside the mortgage. A lot of new homes come with bare dirt in the back, so turf, shade, and a pool are separate projects. Many communities have an HOA, sometimes two. The CC&Rs say the dues. Read them. I will not call a community good or bad. The tax bill follows the parcel, not the flyer. Ask the lender which tax estimate is in the payment, and ask a tax professional about a VA disability exemption. I do not give tax advice.

FAQ

Can I use a VA loan before the house is built?

The funding-fee chart covers purchase and construction loans. Whether this builder and this lender will close before the house is finished is their program. Ask with your timeline in front of you.

Does a builder buydown count against the 4 percent cap?

The VA counts a builder- or seller-funded temporary buydown as a concession, capped at 4 percent of reasonable value. Closing-cost credits are separate. Your lender applies that to the offer.

Do I still need an inspection on a new home?

Yes, if you want one. The VA appraisal checks minimum property requirements and value. VA.gov says it is not a home inspection.

If you are about to walk a model

Send the community name, your move date, and whether you have a Certificate of Eligibility. Call or text 602-554-8731, or use the contact page.

Sources (as of November 2, 2026)

No builder incentive dollars are quoted. The offers were not stable enough to cite on November 2, 2026.