VA Construction Loans in
Myrtle Beach
VA construction loans make Myrtle Beach homeownership easier with $0 down, no PMI, and competitive interest rates.
VA Construction Loans in Myrtle Beach: $0 Down, One Closing, Built for Veterans
VA construction loans in Myrtle Beach work as one-time-close construction-to-permanent loans - eligible veterans and service members close once before construction begins, pay interest only on funds drawn during the build, and the loan automatically converts to a permanent VA mortgage when the certificate of occupancy is issued. No second closing, no second set of fees, no re-qualification at conversion, and no down payment required for full-entitlement borrowers. The Grand Strand is home to one of the largest veteran retiree populations in South Carolina, making Myrtle Beach one of the most active VA construction markets Beaufort Lending serves. The builder must be VA-registered and the home must meet VA Minimum Property Requirements (MPRs) - but for eligible veterans ready to build, this is the single most powerful financing tool available.
What Makes VA Construction Loans Different
VA construction financing shares the same headline benefits as a standard VA purchase loan - no down payment, no PMI, competitive wholesale rates - but the construction process adds a layer of VA-specific oversight on the builder side and the draw inspection process. Here's what sets it apart.
How VA Construction Works
The VA one-time-close structure combines your construction financing and permanent mortgage into a single loan with one closing. At closing, funds go into escrow and are released to your builder in draws as each construction milestone is completed and verified. During the build phase, you pay interest only on the amount drawn - not the full loan amount. When the county issues your certificate of occupancy, the loan automatically converts to a standard VA mortgage with principal and interest payments. Your permanent rate was locked at the original closing, so rate moves during construction don't affect you.
- One closing before construction begins
- Interest-only payments during the build phase
- Automatic conversion to permanent VA mortgage at CO
- Rate locked at initial closing - no rate risk during build
- VA funding fee applies (2.15% first use - can be financed)
- Fee waived for borrowers with a verified VA funding-fee exemption
VA vs. Conventional Construction
The most significant practical difference is the down payment. Conventional construction loans in Myrtle Beach typically require 10–20% of the total project cost (land plus build) at closing. VA eliminates that requirement entirely for eligible borrowers with full entitlement. The trade-off is more oversight: VA adds builder registration requirements and MPR standards that conventional lenders don't require - which is one reason VA construction lending is lender-specific and not every lender offers it in every county.
- $0 down (VA) vs. 10–20% down (conventional)
- No PMI on VA vs. PMI required below 20% on conventional
- VA-registered builder required vs. lender-vetted builder
- VA MPR property standards vs. standard appraisal
- VA funding fee vs. no fee but higher reserves/rates
- VA: primary residence only vs. conventional allows second homes and investment
Builder & Property Requirements for VA Construction in Horry County
VA adds a second layer of qualification on top of the borrower: the builder and the property itself must both meet VA standards. This is the most common friction point for veterans pursuing construction financing - not the borrower qualification, but finding a builder and site that check every box.
Builder Requirements
- Must hold a VA Builder ID (registered with the VA)
- Licensed general contractor in South Carolina
- Adequately insured - general liability and workers' comp
- Lender performs financial stability background check
- Fixed-price construction contract required at closing
- Must pass VA draw inspections at each milestone
Not every Horry County builder is VA-registered, but the registration process is straightforward. Beaufort Lending can help your preferred builder get registered before you finalize your contract - it is worth doing before you purchase land or sign a builder agreement.
Property & Site Requirements
- Must meet VA Minimum Property Requirements (MPRs)
- Primary residence only - no investment builds or vacation rentals
- Standard single-family home or eligible townhome structure
- Condotels and non-warrantable condo projects are NOT eligible
- Coastal builds must meet Horry County wind-rated construction standards
- Flood zone properties require FEMA-compliant build elevation
- Rural lots: confirm septic, well, and access road eligibility upfront
Why VA Construction Is Active in the Myrtle Beach Market
The Grand Strand has one of the largest veteran and military retiree populations of any South Carolina market - drawn by the climate, low property taxes, and proximity to former duty stations. Horry County is also one of the fastest-growing counties in the state, with active residential development in Carolina Forest, Conway, Longs, Little River, and Murrells Inlet. Custom home lots on the Intracoastal Waterway, in golf communities, and in planned developments throughout inland Horry County are increasingly available at price points where VA construction financing is a natural fit.
The most important practical step before pursuing VA construction in Horry County is confirming that the lender you're working with actively offers VA construction financing in the county where you want to build. Not all lenders do. VA construction is a specialty product - the draw management process, builder oversight, and VA appraisal requirements require lenders with specific operational infrastructure. Confirm lender participation before purchasing land or finalizing any builder agreement.
For coastal and near-beach lots, budget for higher homeowners insurance (wind and flood coverage can exceed $5,000–$10,000+ annually on coastal builds) and confirm HOA fee projections before finalizing your construction budget. These costs factor directly into your VA loan qualification. Insurance and HOA obligations on newer coastal builds routinely surprise buyers who qualified comfortably on the base loan payment alone.
VA Funding Fee - Construction Loans (2026)
The VA funding fee is a one-time charge at closing that helps sustain the VA loan program. It can be financed into the loan balance, keeping out-of-pocket costs at closing near zero. Borrowers with a verified VA funding-fee exemption are exempt from the funding fee entirely.
| VA Loan Use | Down Payment | First Use | Subsequent Use |
|---|---|---|---|
| Purchase or Construction | Under 5% | 2.15% | 3.30% |
| Purchase or Construction | 5%–9.99% | 1.50% | 1.50% |
| Purchase or Construction | 10% or more | 1.25% | 1.25% |
| IRRRL Streamline Refi | N/A | 0.50% | 0.50% |
VA Construction Loan Timeline: From Application to Move-In
VA construction adds a few steps compared to a standard VA purchase - primarily the builder eligibility check and the VA subject-to appraisal. Plan for a 6–10 week process from application to closing before construction begins, then 8–14 months for the build itself.
- Pre-Approval + Builder Eligibility Check Get VA pre-approved and confirm your builder holds a VA Builder ID. If your preferred builder isn't registered, this is the time to start that process - it typically takes 1–2 weeks. Your pre-approval establishes total project budget (land plus construction cost) and confirms your entitlement status and funding fee exemption if applicable. Timeline: 1–3 weeks
- Construction Plans + VA Subject-To Appraisal The lender orders a subject-to appraisal based on your construction plans, specs, and local comparable completed homes. The appraiser also reviews plans for VA MPR compliance. A fixed-price construction contract is required before the appraisal. Detailed plans, material specifications, and the signed builder contract must all be in hand at this stage. Timeline: 3–6 weeks
- VA Loan Closing - One Close You close on the construction loan before any ground is broken. Funds are placed in escrow and released to the builder as milestones are completed and inspected. Your permanent VA mortgage rate is locked at this closing. You begin paying interest only on the amount drawn - not the full loan balance. No second closing will occur at completion. Timeline: Week 6–9 from application
- Construction Phase - VA Draw Inspections As your builder completes milestones - foundation, framing, rough mechanical, drywall, finish - draw requests trigger VA-required inspections to verify work meets MPR standards. Horry County inspections are typically completed within 3–5 business days of the draw request. Most VA construction projects require 4–6 draw inspections. A 10% holdback on each draw is common, released after final inspection. Timeline: 8–14 months
- Certificate of Occupancy + Automatic Loan Conversion When Horry County issues your certificate of occupancy and the final draw is released and inspected, your VA construction loan converts automatically to your permanent VA mortgage. No second application, no new credit pull, no re-qualification. Your first full principal and interest payment is due 30 days after conversion. Timeline: Within 30 days of CO issuance
Build on Land You Already Own: If you own a lot in Horry County free and clear, the appraised equity in that land can typically count as part of your equity position on a VA construction loan. A veteran who paid $65,000 for a lot in Conway or Little River that appraises at $80,000 at closing may be able to use that equity to offset or eliminate the need for any additional cash contribution. Structure your land acquisition with your lender before signing a builder contract - the sequencing matters for how the equity is recognized.
VA Construction Loan FAQs - Myrtle Beach
How does a VA construction loan work in Myrtle Beach?
VA construction loans in Myrtle Beach work as one-time-close construction-to-permanent loans. Eligible veterans and service members close once before construction begins, pay interest only on funds drawn during the build phase, and the loan automatically converts to a permanent VA mortgage when the certificate of occupancy is issued. There is no second closing, no second set of closing costs, and no re-qualification at conversion. The permanent rate is locked at the original closing, and no down payment is required for full-entitlement borrowers. The builder must hold a VA Builder ID and the property must meet VA Minimum Property Requirements.
What builder requirements apply to VA construction loans in South Carolina?
The builder must be registered with the VA and hold a valid VA Builder ID. They must be licensed and insured as a general contractor in South Carolina, and the lender will perform a financial stability review. The home must be built to VA Minimum Property Requirements and pass draw inspections at each construction milestone. Not every Horry County builder is VA-registered, but Beaufort Lending can help your preferred builder get registered - it is worth confirming before you purchase land or finalize any builder agreement.
Can I build on land I already own in Horry County using a VA construction loan?
Yes. If you already own a lot in Horry County, you can use the appraised equity in that land as part of your overall project financing. If the land is owned free and clear, that equity can often satisfy or reduce what you need to bring to closing. This is common for veterans who purchased land in Carolina Forest, Conway, Longs, or Murrells Inlet in advance of building. Structure the land acquisition with your lender before signing a builder contract - how and when you purchase the land affects how the equity is counted.
Does a VA construction loan work for coastal or oceanfront properties in Myrtle Beach?
VA construction loans can be used for coastal and ocean-adjacent properties that meet VA Minimum Property Requirements, but there are real limitations. Condotel units and non-warrantable condo projects are not eligible - the property must be a standard single-family home or an eligible townhome. Coastal properties must comply with Horry County flood zone and wind-rated construction requirements. Wind and flood insurance on coastal builds is significantly higher than inland properties and factors into VA qualification. Bring insurance cost estimates into your planning early - they affect how much home you can qualify for.
Ready to Build Your Grand Strand Home with Your VA Benefits?
Get pre-approved for VA construction financing before you sign with a builder or purchase a lot. We'll confirm your entitlement, lock your permanent rate, and coordinate directly with your builder on VA registration, draw schedules, and inspection timelines - one call from land to move-in.
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