Build a Home with a VA Loan

Can I use a VA Loan to Build a New Construction Home in Williamsburg Virginia?

The Tia Stanley Team believes… #Veterans should have the option to build a truly custom home, in a location of their choosing, using their zero-down VA loan.

Unfortunately, the VA does not offer a construction loan product & lenders require 10-20% down-payment.  (Ex: on a $300,000 loan, down-payment would be $30,000 – $60,000 depending on the lender.) Additionally, construction loans accrue substantial interest during construction. If you already own a LOT, additional options may be available.

Our team has an exclusive plan to get you into a custom home without 10-20% out-of-pocket. Builder is agreeing to bear the financial risk, buying the LOT & building out of his own pocket. This is not typical. At closing you will use your pre-approved VA Loan. There is a very reasonable security deposit, but you will get it back at closing & enjoy a true zero down loan. We can only offer this in our region where the builder is located. The following is our Simple 8 Step Plan.

Step One...

Contact Tia for introduction & overview. This offer is only available through my team. If you already have a buyer’s agent, we need to know up front. cell/text: (757) 243 – 3245 

Step Two…

Pre-Approval will be the next step.  Atlantic Bay Mortgage Group is a VA Underwriter & our Preferred Lender w/ Buyer Closing Cost  Incentives based on  purchase price.              Contact Lauriane VanVoorhees                                         laurianevanvoorhees-profile                   Direct: (757) 561-7910                                                                              Email: Lvanvoorhees@atlanticbay.comabmg-header-logo

STEP three…

Brian Parsons-Class A Builder w/ KAR-SAN

Brian Parsons-Class A Builder w/ KAR-SAN

Meet with exclusive Builder, Brian Parsons & Tia Stanley for initial consultation to discuss process, answer questions, talk about timelines, what you want in a home, price range, & how to select a LOT.  KAR-SAN Development, LTD is an unlimited Class- A builder with an outstanding reputation, has built over 1000 homes in the Williamsburg VA area, and remains competitive in price per square foot. This is great news for you.


Identify a LOT, or let Tia help you find a LOT. You are not locked into a particular      neighborhood or location, except  if LOT location is undesirable for resale. Why?  KAR-SAN is carrying the financial risk. If for any reason you do not close, builder must be able to market & re-sell home.  Builder will visit the LOT to determine visually if it appears buildable before proceeding. LOT selection is crucial to the outcome.

Step Five...

Once LOT is identified, be prepared to sign a contract to build with KAR-SAN and make a deposit, in most cases $10,000 which you will receive back at closing. This will be stated in writing. The deposit is non-refundable only  if you fail to close. You are building a custom home, so you will have choices. You may need to meet with the designer during this phase. The Builder is happy to include 3% as part of the final purchase price to cover Buyer’s normal & customary closing costs, saving you from the out-of-pocket expense.  This is optional. Your lender can help with understanding costs. We have no pre-determined  minimum or maximum, but  Every home buyer & transaction is different. If we can make it work…we will.

Step Six…

Builder & agent will negotiate to purchase the LOT at KAR-SAN’s expense, subject to acceptance of offer & soil/shrinkage test prior to LOT purchase. If soil is poor, we will locate another LOT and you will still be under contract. You may want to have a back-up LOT identified. Building on a LOT with poor soil can greatly impact cost.


Building process begins. Survey, permitting, architectural  review in some cases,  design changes,  etc. There is typically 30-60 days where it appears nothing is happening, but it is the process.  County home inspectors are required to inspect at completion of each phase to ensure all building codes & requirements are met.


Once construction is complete, building inspector will issue final Certificate of Occupancy, closing will occur, your initial deposit will be returned to you,  and you will have a brand new custom home with builder warranty.   We all have client references for your peace of mind!Picture1

Considering Other Builders?

Ask questions! Big-Box typically limited to 4 or 5 house plans, specific neighborhoods, minimum choices  of colors, fixtures, features, and no structural customization. If necessary to re-sell while construction is ongoing, you end up competing with that builder.

Some builders, not all, may require  buyers to do self-permitting, do not offer warranty or call back service, & may quietly profit from material cost. ‘Change Order’ fees are rather common for any changes made after contract.

KAR-SAN Development Limited is a family owned & operated business, incorporated in 1973 in upstate New York.  In 1982, KAR-SAN expanded operations to Williamsburg, VA. Some of our homes are found in Greenspring’s Plantation, Fernbrook, Ford’s Colony, Deer Run, Governor’s Land, Powhatan Crossing,   Westminster… KAR-SAN takes pride in what they do, servicing what they build, and honoring all commitments & deadlines within their control. KAR-SAN understands poor quality, workmanship & service are remembered long after the price has been forgotten.

Atlantic Bay Mortgage Group has a history of excellence & community involvement. Founded in 1996. Voted the Best Mortgage Company in Hampton Roads cities by readers of the    Virginian-Pilot every year since 1998. Local members of the Better Business Bureau & Chamber of Commerce. 99.4% Customer Satisfaction, 99.7% Closed-By-Contract Date, T.B.D Loan Underwriting (fully approved). Lauriane  has more than 11 years experience in the    Financial Services Industry,  Graduate of Virginia Tech w/ BA in Communications, Williamsburg resident for almost 30 years. Clients love her!

Tia Stanley Team – REALTOR®, MRP, ABR, ePRO, AHWD has 9 years experience & will be involved in the process, answering questions, negotiating LOT purchase, explaining representation, helping to facilitate transaction, & providing input regarding potential final market value of property. Tia is not an appraiser. Your lender will order the appraisal.

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