Construction Loans in Laurel, VA

New construction financing works on a schedule tied to the build itself. Instead of handing over the full loan at closing, the lender releases money in draws after each phase passes inspection. Whether you are building a custom home in Laurel or working with a production builder elsewhere in Virginia, this guide covers loan types, builder approval, permits and the paperwork that keeps a project moving.

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Call to speak with a licensed loan officer about construction loans in Laurel. Programs vary by borrower, property and investor.

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New home building around Laurel

809Single-family units permitted in Henrico County (2025)

9%Homes built 2010 or later

$283,600Median home value

Henrico County issued permits for 809 new single-family housing units in 2025. About 9% of the homes in Laurel were built in 2010 or later.

One closing or two: choosing a loan structure

A construction-to-permanent loan, sometimes called a single-close or one-time close loan, covers both the build and the long-term mortgage under one set of closing documents. During construction you usually pay interest only on the funds drawn so far. Once the home is finished, the loan rolls into regular payments without a second closing.

A construction-only loan funds the build and must be paid off when the home is complete, usually by a separate permanent mortgage. That means two applications and two closings, but it can give you room to shop for the long-term loan later. Each path has tradeoffs, and programs vary by borrower, property and investor.

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Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

How draws, inspections and the builder fit together

Money moves only after work is verified. The lender holds the loan funds and pays them out according to a schedule written into your loan documents. An inspector visits at each milestone and reports what has been completed, and the draw is sized to match.

This protects you as well as the lender. You are less likely to pay for work that has not been done, and the builder has a clear path to getting paid. Because the builder plays such a central role, expect the lender to check licensing, insurance and track record. Change orders that add cost mid-build usually need lender sign-off and may require you to cover the difference.

Who this tends to fit

You are working with a licensed builder who has a signed contract and detailed plans
You are replacing a teardown with a new home on the same site
You want to build a modular or factory-built home that is set on a permanent foundation
You are interested in an FHA one-time close loan for new construction
You own a lot and want to build a custom home on it

Local offices and Virginia rules to know

Deed and mortgage recording: Henrico Circuit Court Clerk's Office (land records / Deed Book). Your mortgage is recorded here after closing.

Virginia recording costs: State recordation tax on deeds and on deeds of trust/mortgages, city or county recordation tax, and the grantor tax on deeds - all collected by the circuit court clerk as a prerequisite to recording. Your Loan Estimate lists the taxes that apply to your loan.

Land, plans and permits for building in Laurel

If you already own your lot, its value or equity may count toward your contribution, depending on the program. If you are buying land as part of the project, some loans can fold the purchase into the construction financing. Either way, the lender will want to see a survey, title work and confirmation that utilities and road access are available.

Plans and specifications support the appraisal, which values the home as it will be when finished. Local building permits, zoning approval and any septic or well permits must be in place before work begins. Gathering these early prevents delays that can push back your closing.

Before you call

Proof of land ownership, a purchase contract for the lot or a payoff statement for any land loan
Complete plans, specifications and a line-item construction budget
Income, asset and credit documents for every borrower, plus a plan for cost overruns
Your builder's license, insurance certificates and references
A signed construction contract with your builder

Questions Laurel borrowers ask about construction loans

Does my builder need to be approved by the lender?

Most lenders review the builder before approving a construction loan. They commonly ask for a state or local license, general liability insurance, references and a history of completed projects. Some lenders keep a list of builders they have already reviewed. Owner-builder projects, where you act as your own general contractor, are restricted or not allowed under many programs, so ask early if you plan to manage the build yourself.

How is a home that does not exist yet appraised?

The appraiser estimates the value of the home as it will be once construction is complete, using your plans, specifications, budget and recent sales of comparable new homes. This is often called an as-completed or subject-to-completion appraisal. Detailed, accurate plans help produce a reliable value. If the appraised value comes in lower than expected, you may need to adjust the plans or contribute more funds.

Can I use land I already own toward the loan?

Often, yes. If you own your lot free and clear, the equity in the land may count toward what you contribute to the project, depending on the program and lender. If you still owe on the land, the existing loan is usually paid off as part of the construction financing. The lender will want documentation of ownership, a survey and title work showing the land is suitable for building.

Are there VA or FHA construction loan options?

Yes. Eligible veterans and service members may be able to use a VA construction loan, which requires a Certificate of Eligibility and typically a builder who is registered with VA. FHA also offers a one-time close construction loan for eligible borrowers building a primary residence. Not every lender offers these programs, and requirements vary, so ask whether they are available for your build.

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Get answers about construction loans for a home in or around Laurel. Subject to credit approval; programs vary.