With a VA construction loan do you start paying monthly mortgage payments before the house is complete?

No your payments don't begin until the construction is done. The builder does pay interest on the loans however that is built into the construction costs. If you structure it right you can have 0% down payment.

Good luck finding a VA "construction loan". Usually this has to be done with two separate loans, one to construct the house then a permant mortgage using your VA eligibility. It is hard to find a lender that will finance more than 90% on a construction loan.

I have not heard of a VA construction loan. You can get a conventional construction loan and make your permanent loan a VA loan.

VA construction loans are near impossible to find.. Understand that VA does not lend money, they only guarantee loans against default. The lenders, or those with the $$, can make up their own set of rules in addition to VA guidelines.. for this reason, most lender do not participate in VA construction loans, as they are very risk for the lender, even if the loan is insured.. However, if you do find a lender willing to do a VA construction loan, then no payments would be due until the property is complete and you close on the purchase.. regarding down payment... again, another reason why very few lenders do them.. VA financing is 100% financing.. yet builders want the purchasers to come up with a deposit.. so again it falls into finding a VA lender willing to do a VA construction loan, and a builder willing to build you a home without a deposit.. good luck!! I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com