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Test Discover the best states for veterans to buy land and build custom homes in 2025. Explore land prices, construction costs, tax benefits, and the advantages of VA construction loans.
As we step into 2025, more veterans are exploring the dream of building a custom home tailored to their lifestyle. Thanks to the flexibility and powerful terms offered by VA construction loans, this dream is more achievable than ever before. Choosing the right state to build in can significantly affect the cost, climate comfort, and long-term financial benefits.
In this blog, we highlight the Top 10 U.S. States for Veterans to Build a Custom Home in 2025—based on a combination of veteran population, land availability, property tax exemptions, construction costs, climate, and state income tax policies.
| State | Veteran Pop. | # Lots (0.25–5 ac est.) | Avg. Lot Price/acre | Avg. Build Cost ($/sq ft) | Property Tax Exempt? | No State Income Tax? | Avg Temp (F) | Avg Humidity (%) |
|---|---|---|---|---|---|---|---|---|
| Texas | 1,408,010 | ~6,000–8,000 | $7,500 | $150 | Yes | Yes | 65 | 64 |
| Florida | 1,347,330 | ~5,000–7,000 | $28,961 | $150 | Yes | Yes | 70 | 74.5 |
| Georgia | 608,876 | ~4,000–6,000 | $14,242 | $140 | Yes | No | 63 | 71.1 |
| North Carolina | 618,846 | ~4,000–6,000 | $16,230 | $140 | Yes | No | 60 | 70.6 |
| Arizona | 459,818 | 12,970 | $4,200 | $150 | Yes | No | 75 | 40.4 |
| Tennessee | 406,307 | ~4,000–6,000 | $14,400 | $140 | Yes | No | 59 | 69 |
| Alabama | 310,187 | ~3,000–5,000 | $12,356 | $130 | Yes | No | 64 | 77.1 |
| South Carolina | 344,530 | ~3,500–5,500 | $15,000 | $140 | Yes | No | 62 | 70.9 |
| Oklahoma | 247,634 | ~3,000–5,000 | $7,500 | $135 | Yes | No | 60 | 65 |
| Missouri | 354,505 | ~3,000–5,000 | $10,000 | $140 | Yes | No | 55 | 70 |
For veterans looking to finance the construction of a new home, VA construction loans are a powerful tool. Here’s why:
0% Down Payment: Veterans can finance 100% of the construction cost.
No Private Mortgage Insurance (PMI): Save hundreds per month.
Competitive Fixed Rates: Often lower than conventional construction loans.
One-Time Close Options: Consolidate land purchase, construction, and permanent financing into one loan.
With historically low rates and favorable terms, VA construction loans make custom homeownership more accessible than ever.
Not all loan officers understand the intricacies of VA construction loans. Partnering with an experienced lender who specializes in VA construction financing ensures:
Seamless preapproval and builder vetting
Faster underwriting and closing timelines
Expert guidance through every step of the build
Working with a VA-specialized construction lender ensures you avoid costly delays and maximize your benefits.
When choosing where to build, climate and cost of living are critical. States like Arizona and Texas offer low land costs, no state income tax, and moderate climate conditions. For those prioritizing community, Florida, Georgia, and the Carolinas provide vibrant veteran populations with coastal charm.
Building a custom home gives you the freedom to design every detail—and with the right financing partner and location, it can be a rewarding journey. If you’re ready to explore your options or get prequalified for a VA construction loan, reach out to a trusted construction lending expert today.
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