Builder Sold Construction Loans in Virginia
Builder Sold Loan in Virginia
Virginia’s residential lending environment has its own characteristics — Virginia Uniform Statewide Building Code (USBC), based on the International Residential Code with Virginia-specific modifications, local permitting structures, and a construction market shaped by coastal storm and flood risk in Hampton Roads. Normandy’s construction to permanent loan program is available to borrowers across Virginia, including Northern Virginia (DC Metro), Richmond, Hampton Roads (Norfolk, Virginia Beach, Chesapeake), Charlottesville, and Roanoke.
Builder-sold construction is significant in Virginia, with new home communities expanding in Northern Virginia’s outer suburbs, the Richmond growth market, and Hampton Roads’ coastal and inland communities.
Program range: Loan amounts from $95,000 to $5,000,000. Up to 75% of contract price on conforming amounts; 70% for larger amounts. 12-month construction term; extensions available. Interest-only on funds advanced. Foreign nationals are eligible. Full and limited income documentation available. New builders considered.
Pre-qualify or request a rate quote at https://normandy.com/builder-sold-loans/. All Normandy loan programs: https://normandy.com/. Call 800-390-7536.
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 75% of the contract price on conforming loan amounts, otherwise up to 70% of contract price. Cross collateralization considered on other properties, if needed, for maximum or greater loan amounts.
- Land purchase may be included in the construction loan. Please call for a quote.
- Foreign Nationals are eligible for this program
- Deal directly with the Loan Officer/Underwriter
- Full and Limited Income Documentation programs available
- Fast pre-qualification, typically within 3 – 5 business days, closing typically within 30 days (fast track closings 14+/- days available if certain criteria is met)
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Flexible draw schedules
- 1 to 4 family homes, refer to Commercial Construction for more than 4 units
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
- New Builders will be considered
*All rates and terms subject to change without notice
Virginia Construction Market & Regulatory Overview
Virginia’s construction activity is concentrated around the Washington D.C. metro in Northern Virginia, the Richmond growth market, Hampton Roads’ federal and military-driven residential demand, and Shenandoah Valley custom builds.
Building Code: Virginia Uniform Statewide Building Code (USBC), based on the International Residential Code with Virginia-specific modifications.
Permitting: Permits are issued through local county and city building departments under the USBC. Inspections are required at multiple construction stages.
Key construction considerations in Virginia include coastal storm and flood risk in Hampton Roads, high humidity statewide, and winter ice and snow events in Northern Virginia and the mountain regions. Normandy’s underwriting team works directly with borrowers — you deal with the loan officer and underwriter, not a call center.
Contractor Licensing in Virginia
Virginia contractors must be licensed through DPOR (Department of Professional and Occupational Regulation) as Class A, B, or C depending on project size and value.
Owner-Builder Note: Virginia allows owner-builders to construct a residence for personal use without a contractor license. The exemption does not extend to properties built for sale or rent.
Loans Available in the Following States
- Alabama (AL)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Iowa (IA)
- Idaho (ID)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Massachusetts (MA)
- Maryland (MD)
- Maine (ME)
- Michigan (MI)
- Missouri (MO)
- Mississippi (MS)
- Montana (MT)
- North Carolina (NC)
- Nebraska (NE)
- New Mexico (NM)
- New Jersey (NJ)
- New York (NY)
- Oregon (OR)
- Ohio (OH)
- Oklahoma (OK)
- Pennsylvania (PA)
- South Carolina (SC)
- Tennessee (TN)
- Utah (UT)
- Rhode Island (RI)
- Virginia (VA)
- Washington (WA)
- West Virginia (WV)
- Wyoming (WY)
Frequently Asked Questions — Builder Sold Loan in Virginia
Q: What is a builder sold construction loan in Virginia?
A: A builder sold construction loan in Virginia is financing for a builder with a signed purchase contract. Normandy funds the build in draws; the loan is repaid when the buyer closes on the completed home. The 12-month term covers construction, with extensions available.
Q: How does a new construction mortgage work for builders in Virginia?
A: A new construction mortgage in Virginia through Normandy provides draw disbursements as work progresses. Interest-only payments on advanced funds during the 12-month term. Up to 75% of the contract price is available for conforming loan amounts.
Q: What home construction financing is available for signed-contract builds in Virginia?
A: Normandy’s home construction financing in Virginia for signed contracts offers loan amounts from $95,000 to $5,000,000. Full and limited documentation programs available. Cross-collateralization on other properties considered for greater amounts.
Q: What builder financing programs does Normandy offer in Virginia?
A: In Virginia, Normandy offers the Builder Sold Loan (for committed contracts), the Builder Spec Loan (for spec builds), and the Hiring a Builder Loan (for owner-occupant construction). See all programs at normandy.com or call 800-390-7536.
Q: What is a construction mortgage loan for builders in Virginia?
A: A construction mortgage loan for builders in Virginia is short-term financing covering residential construction costs. Draws are disbursed at milestones. Interest-only on advanced funds. 12-month term with extensions available. New builders are considered.