A VA construction loan is the best construction loan on the market. This is a 100% loan for a veteran to have their home built. The builder on this loan has to be a certified VA home builder. These require certain guidelines to meet a VA approved property.
During the construction phase of these loans the borrower is required to pay interest only until the house is finalized not to exceed 11 months.
If you already own the loan, it can be considered a refinance, and the value of the loan can be used as down payment on the home or to be able to roll in closing costs.
I have lenders than can go as low as 580 credit scores on these, certain conditions apply.