Yes — VA loans work on new-construction subdivision homes as long as the builder is VA-registered and the home passes a VA appraisal, including Tennessee's standard termite inspection. Call 253-431-2630 and I'll confirm the builder's VA status and check the HOA paperwork before you sign a contract.
Gray is an unincorporated community in Washington County, sitting along the Highway 75/Highway 11E corridor between Johnson City and Jonesborough — home to the Appalachian Fairgrounds and, in recent years, a wave of new subdivision construction that's made it one of the busiest new-build markets in the Tri-Cities. That's a different housing profile than the historic downtowns of Jonesborough or Johnson City's older neighborhoods, and it raises a different set of VA questions: new-construction builder eligibility and HOA review, rather than historic-home minimum property requirements.
VA financing on Gray's new-construction subdivisions
A VA loan finances new construction the same way it finances an existing home, with two extra steps: the builder needs a VA builder ID on file (most production builders active in Gray already have one from prior sales in the area), and the finished home has to clear a VA appraisal for minimum property requirements, plus Tennessee's standard wood-destroying-insect inspection required on new builds. I confirm builder VA registration early — ideally before you're under contract — since starting that paperwork late is one of the more common things that delays a new-build closing.
HOAs and VA underwriting
Many of Gray's newer subdivisions come with an HOA, and VA underwriting does review HOA budgets and reserve funds as part of the file — it's rarely a dealbreaker, but a newer HOA with thin reserve history can prompt extra underwriter questions. I pull HOA documents early in the process so that step isn't a surprise close to your closing date.
The VA funding fee & entitlement in Washington County
Most VA borrowers pay a one-time funding fee that can be financed into the loan; Veterans with a service-connected disability rating are exempt entirely. Entitlement is reusable after paying off or selling a prior VA-financed home, and with full entitlement there's no VA loan limit in Washington County — you borrow what you qualify for with zero down.
VA Loan Calculator
Estimate your Gray-area payment with 2026 funding fee rates.
Calculate →VA Appraisal Process Explained
What happens during a VA appraisal, and what to do if it comes in low.
Learn more →VA Entitlement Explained
Full, partial, second-tier, and restoration — in plain English.
Learn more →The VA Funding Fee (2026)
Who pays, who's exempt, and what it costs.
Learn more →VA IRRRL Refinance
Already have a VA loan on a Gray home? Streamline-refinance with no appraisal.
Learn more →VA Loan Assumption
Buying or selling a Gray home with an existing low-rate VA loan? Here's how assumption works.
Learn more →