If you have ever driven through the rolling hills between Boerne and Bandera, watched the sunset paint limestone bluffs gold, and thought "I want to build right here" — you are not alone. Hundreds of veterans and active-duty families stationed at or retiring near Joint Base San Antonio dream of owning acreage in the Texas Hill Country. The good news: your VA loan benefit can help make it happen. The fine print: the VA will not finance raw land by itself. You need a plan to build — and you need to understand how to package the deal correctly. This guide walks you through every step, from VA eligibility rules to per-acre pricing in the hottest Hill Country corridors of 2026.

Can You Actually Buy Land with a VA Loan?

The short answer is yes — but only if land and construction are packaged together. The Department of Veterans Affairs does not back stand-alone land purchases. According to VA Pamphlet 26-7, the property must serve as your primary residence, and vacant land without a construction plan does not meet that standard. However, when you combine the lot purchase with a contract to build a home, the VA will guarantee the loan just like a standard VA home loan. The vehicle that makes this work is the VA One-Time Close (OTC) Construction Loan, which rolls land acquisition, construction financing, and your permanent mortgage into a single closing.

Here is the key distinction every veteran needs to understand: raw land alone = not VA-eligible; land plus a construction contract = VA-eligible. If you already own a lot free and clear, your equity in that land can count toward the deal, potentially reducing your total loan amount. Either way, construction plans and a licensed builder must be part of the package before a VA lender will move forward. For a full breakdown of the buying process, see our VA home buying guide for San Antonio.

What Are the VA Land Purchase Options?

Not every land scenario qualifies the same way under VA guidelines. The table below compares the four most common situations Hill Country buyers encounter.

How Does the VA One-Time Close Construction Loan Work?

The VA One-Time Close loan is the cornerstone of any land-plus-build deal. Here is how the process unfolds:

1. Get pre-qualified — Submit your Certificate of Eligibility (COE), income documentation, and credit details to a VA-approved lender that offers construction loans. Check your VA loan eligibility first.
2. Select your land and builder — The builder must be licensed, insured, and acceptable to your lender. As of March 31, 2025, the old VA builder ID requirement was removed; what matters now is that the builder passes your lender's acceptance process.
3. Submit construction plans — Blueprints, specifications, and a detailed cost breakdown go to your lender for review and appraisal.
4. Appraisal and underwriting — The VA appraisal is based on the as-completed value of the home, not just the lot.
5. Close once — Land purchase, construction financing, and permanent mortgage are all wrapped into a single closing. Your interest rate locks before construction begins.
6. Construction phase — Funds are released to the builder in draws after inspections verify completed work. You make no mortgage payments during this phase.
7. Final inspection and occupancy — Once complete, the local municipality issues a certificate of occupancy and the loan converts to a standard 15- or 30-year VA mortgage.

The VA funding fee for construction loans is identical to purchase loans: 2.15% for first-time use (less than 5% down) and 3.3% for subsequent use. Veterans with a VA disability rating are exempt from the funding fee entirely. Most lenders offer build terms of 6, 9, or 12 months with rate locks extending up to 360 days.

How Much Does Land Cost in the Texas Hill Country in 2026?

Land prices in the Austin-Waco-Hill Country region reached a record high of $7,704 per acre on average in 2025, a 3.4% year-over-year increase. However, pricing varies enormously depending on proximity to San Antonio, lot size, road frontage, water availability, and existing infrastructure. Below is a snapshot of what veterans shopping for Hill Country acreage can expect in the communities closest to JBSA.

Key takeaway: Bulverde and Boerne carry premium pricing due to their proximity to San Antonio and strong school districts, while Bandera and Medina offer significantly more acreage at lower per-acre costs — ideal for veterans who want room to spread out and don't mind a longer commute. Explore more areas in our best neighborhoods in San Antonio guide.

What Do You Need to Know About Well, Septic, and Zoning in the Hill Country?

Building on rural Hill Country land is different from buying in a subdivision closer to San Antonio. Most rural parcels lack municipal water and sewer, which means you will need a private well and a septic system. Here is what to plan for:

• Septic permitting — In Kendall County, you must obtain a septic (OSSF) permit before your building permit. Properties under 10 acres require a full permit with site evaluation, soil testing, and engineered design plans. Hill Country limestone bedrock often appears within 18–24 inches of the surface, frequently requiring an Aerobic Treatment Unit (ATU) rather than a standard gravity system.
• Water wells — Budget $8,000–$20,000+ for drilling, depending on depth and terrain. In areas served by the Cow Creek Groundwater Conservation District, your well and septic must maintain 100-foot separation and reference consistent site plans.
• Edwards Aquifer Recharge Zone — If your property sits in northern Bexar, western Comal, or southern Hays County, expect TCEQ aquifer protection requirements, specialized engineering, and review periods of 90–120 days before site work can begin.
• Zoning and ETJ — Unincorporated Hill Country land generally does not require a traditional building permit, but development permits for driveway access, septic, and floodplain compliance are mandatory. Always verify whether your lot falls within a city's Extraterritorial Jurisdiction (ETJ), where city codes may apply even outside city limits.
• Dark Sky ordinances — Kendall County and several Hill Country communities enforce strict outdoor lighting regulations to preserve the night sky. All exterior fixtures must be fully shielded and directed downward.

These infrastructure costs — typically $15,000–$40,000 combined for well, septic, and site prep — should be factored into your total build budget. The VA One-Time Close loan can include land, construction, and site improvements in a single loan amount, provided the total stays within your appraised value and lending limits. The 2026 VA conforming loan limit is $832,750, though veterans with full entitlement have no hard cap. Understanding your Texas veteran property tax exemption can also help offset ongoing costs once you are settled.

What Are the VA Minimum Property Requirements for New Construction?

New construction is generally easier to bring into VA MPR compliance than older resale homes, but the requirements still matter. The finished home must be:

• Safe, structurally sound, and sanitary — with functioning electric, heating, cooling, and plumbing systems
• Move-in ready — completed grading, drainage, flooring, railings, and all health-and-safety items finished before the VA appraiser signs off
• Accessible from an all-weather road — the property must connect to a public or private all-weather street
• Supplied with clean, continuous water and proper sewage disposal (well and septic must be operational)
• Free of hazards — no lead-based paint, wood-destroying insects, or structural defects

In the San Antonio and Hill Country area, pay close attention to drainage, grading, and foundation conditions — especially on sloped lots or clay soils common in parts of Bexar and surrounding counties, which can delay final VA approval if not completed properly. Your builder should be experienced with Hill Country terrain and VA inspection requirements. For more detail on new construction timelines and costs, visit our VA new construction guide.

How Can Veterans Save Money on a Hill Country Land-and-Build Deal?

Building on Hill Country acreage is a significant investment, but veterans have several financial advantages that civilian buyers do not:

• Zero down payment — VA OTC loans allow 100% financing of land plus construction costs with full entitlement, compared to the 5–20% down required by conventional construction loans.
• No PMI — Even at 100% financing, VA borrowers never pay private mortgage insurance.
• Funding fee exemption — Veterans with any VA disability rating pay $0 in funding fees, saving $17,000+ on a $800,000 build.
• No payments during construction — Your first mortgage payment is not due until the home is complete and you receive your certificate of occupancy.
• Texas veteran property tax exemption — Depending on your disability rating, you may qualify for a partial or full property tax exemption on your homestead.
• Serve & Save Program — Christopher Beal's program reduces closing costs for veterans, active-duty service members, first responders, and educators, putting more money toward your build.

When you combine these benefits, a veteran building a $500,000 custom home on a $150,000 lot could save $30,000–$50,000 compared to a civilian using conventional financing. That is money that goes directly into upgrades, landscaping, or a barn for your Hill Country property. If you are also considering resale options, look into VA assumable loans — a property with a low-rate assumable VA mortgage can be a powerful selling point down the road.

What Should You Budget for Earnest Money and Closing Costs?

When placing an offer on Hill Country land, you will typically need earnest money of 1–3% of the purchase price to demonstrate serious intent. For a $150,000 lot, that means $1,500–$4,500 held in escrow. This amount is credited toward your purchase at closing. You should also budget for closing costs on the VA OTC loan — typically 2–5% of the total loan amount, though the VA limits certain fees lenders can charge. Having a plan for your competitive offer strategy is especially important in sought-after Hill Country areas where desirable parcels move quickly.

Do You Need a Home Warranty on New Construction?

VA guidelines require your builder to provide at least a one-year builder warranty or an approved insured warranty plan covering defects in materials and workmanship. Many builders in the Hill Country also offer structural warranties of 2–10 years. Beyond the builder warranty, some veterans choose to add a separate home warranty once the builder warranty expires to cover major systems and appliances. It is worth understanding what is covered under each layer of protection before your build is complete.

What About HOA Rules and Property Taxes in the Hill Country?

Many Hill Country subdivisions — especially master-planned communities in Boerne, Bulverde, and Spring Branch — have HOAs with architectural review committees that govern what and how you can build. If you are purchasing a lot in one of these communities, review the CC&Rs (Covenants, Conditions, and Restrictions) carefully before committing. Our HOA guide for military buyers explains what to look for.

On the tax side, Hill Country counties generally have lower property tax rates than Bexar County, though rates vary by school district and special taxing districts. Veterans with a disability rating should apply for the Texas veteran property tax exemption immediately after closing — a 100% disabled veteran pays zero property tax on their homestead. For a deeper look at tax savings, see our property tax exemption guide.

Why Work with Christopher Beal?

• U.S. Army Veteran — understands military life, PCS moves, and VA loan benefits firsthand
• SABJ Top 25 Realtor three consecutive years — #14 in 2025, #13 in 2024, and named again in 2026
• 3x Platinum Top 50 Producer and 6x ICON Agent at eXp Realty
• Military Relocation Professional (MRP) certified
• 293+ military and veteran families served — over $112M in closed volume
• Serve & Save Program — reduces closing costs for veterans, active duty, first responders, and educators
• Deep Hill Country expertise — Christopher works with VA-savvy lenders and licensed builders across Kendall, Comal, Bandera, and Kerr counties

Frequently Asked Questions

Explore More Resources

• VA Home Loans in San Antonio
• How to Buy a Home with a VA Loan in San Antonio (2026)
• VA Assumable Loans in San Antonio
• Serve & Save Program
• VA Loan Eligibility in San Antonio
• VA Loan Funding Fee Explained
• Best Neighborhoods in San Antonio
• Luxury Homes in San Antonio
• Military Relocation Guide
• Texas Veteran Property Tax Exemption
• Free Home Evaluation
• Client Reviews

Call or text Christopher Beal: (210) 882-8583