VA Loans and PCS Moves: New Construction Near Fort Bragg

A VA loan can be used to buy a newly built home, and many of the builders around Fort Bragg sell homes that are already finished or under construction. This guide explains how a VA purchase loan works with new construction, what to plan for around a PCS move, and which of the 56 communities this report tracks in the towns around the installation are closest to the post, list homes that can close sooner, or advertise help with closing costs. The VA rules below are summarized from VA.gov, benefits.va.gov and consumerfinance.gov, with links to each source. Your lender applies these rules to your loan, so confirm the details with your lender.

Jump to: How VA loans work with new construction | Funding fee | Builder credits | PCS timing | Closest communities | Homes that can close sooner | Closing cost offers | By budget

How a VA Loan Works With New Construction

• Eligibility. You need a VA home loan Certificate of Eligibility (COE), you must meet VA and lender standards for credit and income, and you must live in the home you buy with the loan. VA purchase loan
• New homes qualify. VA lists buying a single family home and building a new home among the ways a VA backed purchase loan can be used. VA purchase loan
• No down payment. A VA backed purchase loan often requires no down payment as long as the sales price is not higher than the appraised value. With full entitlement there is no VA loan limit, as long as you can afford the loan and the appraisal supports the price, and your lender still has to approve the loan amount. VA entitlement and limits
• No monthly mortgage insurance. VA loans do not require private mortgage insurance, and there is no penalty for paying the loan off early. VA purchase loan
• VA appraisal. Your lender orders a VA appraisal, and the VA Notice of Value shows the home's reasonable value. VA notes that an appraisal is not a home inspection. VA says the maximum VA loan on a property is the lower of the appraised value and the purchase price, so ask the builder in advance how it handles an appraisal that comes in below the contract price. VA how to apply | VA entitlement and limits
• Builder approval. Many buyers search for a VA approved builder. VA no longer requires a VA builder identification number to issue the Notice of Value or process a VA guaranteed loan on new or proposed construction. Builders are still expected to meet state and local licensing requirements, and VA relies on local building inspections and 1 or 10 year construction warranties rather than its own inspections, so ask the builder for its warranty in writing and consider an independent inspection. VA circular to lenders on builder ID numbers

The VA Funding Fee

The VA funding fee is a one time fee paid at closing on a VA loan unless you are exempt. It can be paid in cash or financed into the loan. On a purchase loan, the funding fee is the only cost VA allows you to finance; other closing costs must be paid at closing, by you or through allowed seller or builder credits. These are the purchase loan rates VA lists, as a percentage of the loan amount:

Some buyers do not pay the funding fee at all. VA lists these exemptions: you receive VA compensation for a service connected disability; you are eligible for that compensation but receive retirement or active duty pay instead; you receive Dependency and Indemnity Compensation as the surviving spouse of a Veteran; you are a service member with a proposed or memorandum rating before closing that says you are eligible for compensation because of a pre discharge claim; or you are on active duty and provide evidence of a Purple Heart on or before closing. VA funding fee and closing costs. Check the current chart on VA.gov before you close, because VA sets these rates.

Builder Credits and the VA 4% Concession Limit

Builder incentives often come as credits at closing. VA allows sellers and builders to pay some or all of a buyer's closing costs and does not limit credits for normal loan closing costs. VA does limit seller concessions to no more than 4% of the home's reasonable value shown on the VA Notice of Value. VA describes concessions as anything of value added to the sale at no cost to the buyer, such as paying the VA funding fee, paying off the buyer's debts or prepaying hazard insurance. VA funding fee and closing costs

Many builder offers also require the builder's preferred lender. The Consumer Financial Protection Bureau says you do not have to use the builder's lender and have the right to shop around, and suggests contacting at least three lenders and comparing their Loan Estimates, including the cash needed to close. CFPB on new construction | CFPB on contacting lenders | CFPB Loan Estimate explainer

Timing a New Home Around a PCS Move

• Finished or nearly finished homes. A quick move in, move in ready or spec home is already built or under way, so it can usually close sooner than a home the builder has not started. When you have a report date, this is often the simplest path. See the list below of communities where builders listed these homes.
• Building from the ground up. A home that has not been started gives you more choice of plan and options but takes longer. Ask the builder for its estimated completion date in writing, what happens to your deposit and rate if construction runs late, and how long any interest rate offer is held. The CFPB also suggests asking under what conditions a builder deposit can be returned. CFPB on new construction
• Occupancy. VA requires you to intend to live in the home. VA guidance to lenders defines a reasonable time to move in as within 60 days after closing, with longer periods possible only for a specific future event and generally no more than 12 months. For an active duty service member who cannot move in within that time, occupancy by a spouse or dependent child can satisfy the requirement, and a service member on deployment from the permanent duty station can still meet it. VA lender training on occupancy
• Get your COE and preapproval early. Your lender may be able to request your Certificate of Eligibility online. Active duty service members need a statement of service signed by a commander, adjutant or personnel officer; Veterans need a DD214. VA how to request a COE
• Closing from a distance. If you cannot be there to sign, ask your lender and the closing attorney or settlement agent early whether they will accept a power of attorney, what form it must take, and whether the original must be delivered before closing. Requirements differ, and approval can take time, so do not wait until the last week.
• Final walkthrough and inspection. If you will not be in town, plan who will attend inspections and the final walkthrough for you, and get the builder warranty terms in writing before closing.

New Construction Closest to Fort Bragg

The 12 communities in this report with a builder published location that sit closest to the center of the Fort Bragg census area, measured in straight line miles. Drive times depend on which gate you use and the time of day, so map your own commute before you choose. The full table is on the new homes near Fort Bragg page.

Communities Where Builders Listed Homes That Can Close Sooner

In the towns around Fort Bragg, 15 communities in this report had a builder listing quick move in, move in ready, spec or specific available homes when checked. Inventory changes daily, so ask the builder what is available and its estimated completion date.

Builder Offers That Mention Closing Costs

4 builder offers in this report mention closing costs and are still within any end date the builder published. Each is shown the way the builder published it. Ask whether the offer works with a VA loan and whether it counts toward the VA 4% concession limit.

• Atherstone in Angier by LGI Homes: Builder paid closing costs advertised See the offer.
• Boone Trail Village in Lillington by LGI Homes: Builder paid closing costs advertised See the offer.
• Brayden Preserve in Broadway by LGI Homes: Builder paid closing costs advertised See the offer.
• Lexington Woods South in Fayetteville by Smith Douglas Homes: Select homes may qualify for a 4.99% initial rate on a 5/1 ARM, up to $10,000 toward closing costs and 50% off design options up to $10,000, per builder See the offer.

See every current builder offer on the new construction incentives page.

Communities Near Fort Bragg by Starting Price

Published starting prices for communities in the towns around Fort Bragg, grouped by budget. A starting price is the builder's base price, usually for the smallest plan, before options and lot premiums. 8 more communities have no published price and are not shown here. How much you can borrow depends on your lender's approval and, if you do not have full entitlement, your remaining entitlement.

Under $300,000 (26 communities)

• The Townes at Cape Overlook, Lillington, From $194,000
• Caitlin Crossing Townes, Lillington, From $221,990
• Townes at North Main, Lillington, $224,000 to $234,000
• Cape Overlook, Lillington, From $236,990
• Milton, Lillington, $249,700 to $489,700
• Stonebarrow, Lillington, From $254,900
• Matthews Ridge, Lillington, From $254,990
• Reedy Branch, Lillington, From $257,990
• Elyse Meadows, Lillington, From $259,990
• Partridge Village, Lillington, From $259,990
• Dry Creek Village, Lillington, From $263,990
• Harnett Lakes, Spring Lake, $264,700 to $299,700
• Stone Creek, Raeford, From $271,500
• McLean Meadows, Bunnlevel, From $271,900
• Magnolia Ridge, Lillington, From $273,500
• Caitlin Crossing, Lillington, From $274,990
• Lakeside at Snow Hill, Hope Mills, From $279,900
• McDougald Downs, Lillington, From $284,500
• Ducks Landing, Lillington, From $289,900
• Standley Ridge, Spring Lake, From $292,900
• Turnberry South, Raeford, From $293,900
• Bedford, Raeford, From $294,990
• Travolina Pines, Cameron, From $297,900
• Eagle Cove Townhomes, Hope Mills, From $299,900
• Hawley Glen, Lillington, From $299,990
• Pembroke, Hope Mills, From $299,990

$300,000 to $399,999 (19 communities)

• Westerly, Lillington, From $300,990
• Seagrass Landing, Lillington, From $301,900
• Boone Trail Village, Lillington, From $309,900
• Cross Creek, Spring Lake, From $316,990
• Coventry Woods, Fayetteville, From $321,990
• Turnberry West, Raeford, $329,900 to $389,900
• Mason Ridge, Spring Lake, From $333,990
• Sierra Village at Overhills, Spring Lake, From $337,247
• Shahbain Reserve, Raeford, From $340,990
• Buffalo Creek, Raeford, $344,900 to $379,900
• Baywood Preserve, Fayetteville, From $349,900
• Jones Creek Meadows, Lillington, $349,900 to $359,900
• Baywood Terrace, Eastover, From $350,000
• Eagle Cove, Hope Mills, From $359,900
• Griffon Pointe, Lillington, From $368,900
• Brookstone Village, Raeford, From $369,900
• The Colony at Lexington Plantation, Cameron, From $374,900
• Lexington Woods South, Fayetteville, From $374,990
• Blakefield, Fayetteville, From $379,400

$400,000 to $499,999 (3 communities)

• River Bluff, Fayetteville, From $449,900
• Anderson Creek Club, Spring Lake, From $467,537
• Haymount, Fayetteville, From $499,900

Compare across every town: new construction under $300K, new construction under $400K, new construction under $500K.

VA Loan and PCS Questions

VA rules summarized from the linked VA.gov, benefits.va.gov and consumerfinance.gov pages; VA and your lender have the final word on your loan. This page is general information, not loan, legal or tax advice. Community prices, offers and availability are as published by builders and public listing sources and change often.

See also: new homes near Fort Bragg, new construction FAQ, builder incentives and all communities.