Buying a Newly Built Home With a VA Loan in Metro Atlanta

A Metro Atlanta REALTOR® on how a VA loan works with a builder, from a finished home to one that has not been built yet

A VA loan can buy a builder’s quick move-in home that is already completed, or a home to be built for you on a lot in the community. Either way, a few extra steps apply: a builder warranty, an appraisal that may be based on plans, and inspections during construction.

What VA means by new construction

VA categorizes new homes into two groups. A new construction home has never been lived in and has a certificate of occupancy that is less than a year old. A home that is finished except for customer preference items, such as floor coverings, fixtures, and appliances, counts as new construction too. A home that has been lived in, even briefly, is treated as an existing home, or a resale.

A proposed construction home is one that is planned or still being built. VA appraises these homes from the builder’s construction documents, or from a finished model home of the same design.

The builder warranty

VA requires a warranty on a new home. For a finished new home, the buyer receives either a one-year builder warranty on VA Form 26-1859, Warranty of Completion of Construction, or a ten-year insurance-backed warranty. For a home that is not yet built, the builder provides the one-year warranty, and also a ten-year insurance-backed warranty where the local building department does not inspect construction.

Local inspections and the certificate of occupancy

Many city and county building departments inspect a home at three points: the foundation, the framing, and the finished home. These are the government's own code inspectors, separate from the home inspector you hire. VA accepts the certificate of occupancy from the local building department as evidence that those inspections took place and that the home was finished to local building code. If the local building department normally inspects construction and none were done, the home cannot be used as security for a VA loan.

How the appraisal works on a home that is not yet built

The appraiser values a home that has not been built from the builder’s construction documents. These include the floor plans, the foundation layout, the exterior views, and a list of the materials. If the builder has a finished model of the same design in the same market area, the appraiser can value from the model instead. The appraiser is told about any upgrades the buyer’s home has that the model does not.

After the home is built, the appraiser returns to confirm that it matches the construction documents used for the value, along with any conditions in the contract, such as landscaping, decking, or fencing. If the contract changes before closing, the lender sends the updated contract to the appraiser so the effect on value is considered. Added upgrades can be one of those changes.

Builder incentives and the 4% limit

In some places, builders offer concessions as a way to compete for buyers. VA treats a builder the same way it treats a seller. Ordinary closing costs that a builder pays do not count toward the 4% concession limit, while items such as a rate buydown do. For the full list of what counts, see how the VA 4% seller concession limit works.

When there is a problem with the builder

VA stopped inspecting new construction itself in 2006 and relies on local building inspections and the builder's warranty. Since March 2025, a veteran with a complaint about a builder is directed to resources such as the local building department, a licensing board, or an attorney for a serious matter, and VA does not itself get involved.

That puts the weight on the warranty and on your own records. Ask the builder for the warranty documents before you sign the contract, and keep a copy of the contract, the warranty, and every request you send the builder, with dates.

Working with your own agent and your own inspector

A new build involves your lender, the builder's team (including the on-site agent), and an independent home inspector if you hire one. Your REALTOR® is the person on your side through all of it. On a new build, here is what I do for my clients:

• I go with my buyers to the builder's sales office on the first visit. The on-site agent there represents the builder, and having your own agent present means someone on your side is part of the conversation from the start.
• I recommend a home inspection by an independent inspector. VA does not inspect the construction, and the local building department confirms code compliance. The inspector's report is the document you will want if something needs to go back to the builder under the warranty.
• I read the builder's warranty paperwork with my buyers before they sign, so they know what it covers, how long it lasts, and how to make a request.

Starting the search in north metro Atlanta

A new build can suit a veteran who wants to choose a floor plan, pick the finishes, and move into a brand-new home. If you would like to look at what is being built across north metro Atlanta, call me and we will start with the builders and communities near where you want to live.

Michelle Campbell | Campbell Group at Epique Realty | campbellgrouprealty.com