1. Purpose. This Circular replaces Chapter 7, Topic 2, Construction Loans, in the Department of Veterans Affairs (VA) Pamphlet 26-7, Lender’s Handbook, effective April 6, 2018.
2. Background. VA has received inquiries regarding the procedures to process construction loans. Although VA currently offers lenders the ability to originate new construction loans, the brevity of VA guidance has kept many lenders from offering the product. This guidance will allow lenders and
builders to offer more opportunities to Veterans.
Please see Circular 26-18-7 for complete details.