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Can a Surviving Spouse Use a VA Loan to Buy a New Build in San Antonio?

Yes. A surviving spouse who qualifies for a VA Certificate of Eligibility (COE) can use a VA-backed purchase loan on a new construction home in San Antonio, the same way a veteran can. You qualify if, for example, the veteran died in service or from a service-connected disability and you didn’t remarry (or remarried after age 57 and on or after December 16, 2003). If you receive Dependency and Indemnity Compensation (DIC), you don’t pay the VA funding fee. Here’s how it works on a new build.

Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
VA Loan & New Construction Specialist

Also see: VA Loans on New Construction | VA Funding Fee Exemptions | Disabled Veteran Property Taxes on a New Build

Which Surviving Spouses Qualify for a VA Home Loan?

VA.gov says you may be able to get a COE as the spouse of a veteran if at least one of these is true:

  • MIA or POW: The veteran is missing in action or is a prisoner of war.
  • Death in service or from a service-connected disability: You didn’t remarry.
  • Remarriage after 57: The veteran died in service or from a service-connected disability, and you didn’t remarry before you were 57 or before December 16, 2003.
  • Total disability: The veteran had been totally disabled and then died, even if the disability wasn’t the cause of death (in certain situations).

How Do You Get Your Certificate of Eligibility?

It depends on whether you already receive DIC:

  • Receiving DIC: Complete VA Form 26-1817, Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses. Include the veteran’s DD214 if you have it. Give the package to your lender to submit online, or mail it to the regional loan center listed on the form.
  • Not receiving DIC: First file VA Form 21P-534EZ, the application for DIC, Survivors Pension, and/or Accrued Benefits. Send it to VA’s Pension Intake Center, PO Box 5365, Janesville, WI 53547-5365.

Start this early. On a new build, the COE needs to be in hand before your lender can fully approve the loan, and builder contracts often set short financing deadlines.

Do Surviving Spouses Pay the VA Funding Fee?

Not if you’re receiving DIC as the surviving spouse of a veteran. VA lists that as one of its funding fee exemptions. For a first-use purchase or construction loan with less than 5% down, the fee is 2.15% of the loan, so the exemption saves $7,525 on a $350,000 loan. If you aren’t receiving DIC, ask your lender to confirm on your COE and Loan Estimate whether the fee applies. My funding fee guide covers exemptions and refunds.

Does a VA Loan Work the Same on a New Build?

Yes. VA.gov says a purchase loan can be used to buy a home or to build a new one. The same program rules apply to you as a surviving spouse:

  • Occupancy: You must live in the home you’re buying.
  • No down payment: Generally none is required as long as the price isn’t higher than the appraised value.
  • Builder credits: Builders can pay some or all of your closing costs. VA caps seller concessions, such as paying your funding fee or paying off debts, at 4% of the home’s reasonable value.
  • What you can finance: On a purchase or construction/permanent loan, only the VA funding fee can be rolled into the loan. Other costs are paid at closing.
  • Appraisal and MPRs: The home still needs a VA appraisal and has to meet VA’s minimum property requirements. Here’s how MPRs apply to new builds.

Your lender still sets its own credit and income standards. See my guide on income for a VA loan on a new build.

What Texas Property Tax Exemptions Apply to Surviving Spouses?

These are separate from the VA loan, and each has its own rules. Bexar Central Appraisal District (BCAD) and the Texas Comptroller describe several:

  • Armed services member killed in the line of duty (Tax Code 11.133): A total exemption on your residence homestead if you haven’t remarried since the death.
  • Surviving spouse of a 100% disabled veteran (Tax Code 11.131): This exemption requires that the home was your homestead when the veteran died. If you later qualify a different home, such as a new build, BCAD says you keep the same dollar amount of exemption you last received at the former homestead. You need a certificate from the former county’s chief appraiser.
  • Veteran who died from a qualifying condition (Tax Code 11.136): A total exemption for a surviving spouse who hasn’t remarried, when the death resulted from a condition presumed service-connected under the PACT Act.
  • Partial disabled veteran exemption (Tax Code 11.22): This can extend to an unmarried surviving spouse.

Ask BCAD, or your county’s appraisal district in Comal or Kendall County, which one fits your situation before you budget your escrow. My disabled veteran property tax guide covers how exemptions work in the year you close on a new build.

What Are the Steps on a San Antonio New Build?

  1. Request your COE using the form that matches your DIC status.
  2. Get preapproved with a lender that closes VA loans on new construction, and compare it with the builder’s lender.
  3. Register your agent on your first visit to the model, since many builders require it.
  4. Review the builder’s incentive against VA’s 4% concession cap.
  5. Inspect and close. Get your own inspections, then complete your walkthrough before closing.

For the full process, watch How to Buy a New Construction Home with a VA Loan in San Antonio.

Frequently Asked Questions

Can a surviving spouse use a VA loan on a new construction home?

Yes, with a VA Certificate of Eligibility. VA.gov says a VA-backed purchase loan can be used to buy or build a home. The spouse must live in the home and meet the lender’s credit and income standards.

Do surviving spouses pay the VA funding fee?

VA says you don’t pay the funding fee if you’re receiving Dependency and Indemnity Compensation (DIC) as the surviving spouse of a veteran. If you aren’t receiving DIC, confirm with your lender whether the fee applies.

Ready to Use Your VA Benefit on a New Build?

Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran with 120+ homes sold across the San Antonio metro and an eXp ICON agent (2023–24). He helps VA buyers line up the COE, compare builder incentives against VA’s concession cap, and review builder contracts on new builds in San Antonio, New Braunfels, and Boerne.

Also see: How to Use a VA Loan in San Antonio | Builder 2-1 Buydowns With a VA Loan | Low VA Appraisal on a New Build | VA Loan Guide for San Antonio

Sources: VA, Home loans for surviving spouses; VA, Eligibility for VA home loan programs; VA, Funding fee and closing costs; VA, Purchase loan; Texas Comptroller, Property Tax Exemptions; BCAD, Property Tax Exemptions Overview (accessed November 3, 2026).

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