There are a wide variety of acceptable uses for a VA home loan. Contrary to popular belief, borrowers are not limited to single-family, detached homes.
Here are some of the many property types you can purchase using a home loan guaranteed by the Department of Veterans Affairs:
• Single-family homes
• Townhomes
• Condos
• New home construction
The Department of Veterans Affairs is pretty flexible about the ways a borrower can use a VA loan through its program. In addition to buying a home, VA loans can also be used to make home improvements, repairs or alterations to a property already owned. This can also include “green” updates to make a home more energy efficient.
There are a few unacceptable ways to use your loans, however. For example, you can’t buy a plot of land without a clear plan for building a home. VA also frowns on investment properties, so in most cases you can’t buy a home with a VA home loan, then turn around and rent it out for a profit. VA will let you buy multi-family unit housing, but you have to occupy one of those units.
For the most part, so long as you intend to live in the property being purchased with a VA home loan, it’s an acceptable use. To be safe, you may want to check with with your Regional Loan Center or a certified VA lender to ensure the property being purchased passes muster.
I am a Major currently on active duty with 18 1/2 years in service. I used the VA loan to purchase a house in 2005, while married. Sense then, I am currently divorced and I purchased a house with 100 acres of land in 2010. I would like to re-finance, so can I use the VA benefits to re-finance my house?
MAJ Bryan Ash
Fort Bragg, NC
Major Ash, as long as you meet eligibility, entitlement and credit qualifications for a VA Loan, you will be able to use your VA loan benefits to refinance your home. You are welcome to contact iFreedom Direct's government loan refinance specialist Taylor Cowan directly at 801-493-6676. Thank you for your service.
I'm interested in buying a manufactored home on 37 acs for 170k. My wife won't retire until next summer. The home is in another county and won't be able to live there full time until next yr. Can I still get a VA loan for this.
Donnie, The limitations on obtaining a VA loan in your case may be two-fold:
1) Though VA allows home loan guarantees for manufactured homes that meet the requirements (affixed to a foundation, etc), not all VA-approved lenders offer VA loans for manufactured homes. You will probably need to shop around for a lender. As long as it meets the VA guidelines, the property shouldn't be an issue.
2) VA loans require owner occupancy within a reasonable time (60 days). Some exceptions are made for military calls away from home as long as you can provide documentation on an expected return/move-in date within a year of closing. If it's a military job preventing you from moving within 60 days, then you may be able to get qualify for the 12-month extension.
You may want to contact your Regional Loan Center for guidance on this potential VA loan purchase. You can find the one in your area by visiting http://www.benefits.va.gov/homeloans/rlcweb.asp . Best of luck and thank you for your service.
I'm currently in a home I want to remodel. I do not have a VA loan on my current home but would like to get one on a home equity loan and use the equity for the remodel. The concern I have is some of the things I want to fix that are in disrepair will not pass the minimum property requirements. I read that there is possibly a waiver to get around this so that when I am finished with the remodel the home will be up to VA loan standard. Is that correct and how difficult is it to get the waiver approved?
Thanks
Lane, the waiver is typically given only if you are doing repairs that can't be completed due to weather (eg construction in inclement weather) restrictions. However, in order to obtain the loan your property would need to meet minimum property requirements. You can contact your regional loan office for more information at va.gov. Best of luck.
My condo is to on the approved list but is on FHA list. How do I go about getting my condo on the approved VA list
Gene, you would need to contact your Regional Loan Office to get more information on this matter. You can find a list of offices at http://www.benefits.va.gov/homeloans/rlcweb.asp . Best of luck.
i am a vet looking to buy my first home but the home that my wife and i want is a Fannie Mae Homepath Renovation home and price is under what we quallified for. would we be able to use my VA Loan to get the house and use the rest of the loan to remodel what needs to be done.
I currently own a property of about 9 acres which has 3 homes. 2 of the homes are rented. The current loan is an ARM through a credit union. Good shape on income and equity. Would I be able to use my Federal VA loan for a refinance on this property?
I currently have a home on a 30 year traditional fixed loan. very little equity but we are not upside down. i have been approved for a VA loan to purchase a new home for up to 380. We like our home we just need a couple extra rooms and some updating. With the market the way it is I am not sure how fast my home would sell. My thoughts are to stay in my current home and use a VA loan to remodel. Can the VA loan be used for this, or is a lack of equity going to be a sticking point?
Hi Brian, The VA cash-out refinance program can be used to make home improvements. But your hunch is correct — you need equity to take advantage of this kind of VA loan. You may want to start looking around to see if you can find another dream home to use your VA purchase loan benefits. Good luck, and thank you for your service.
I’m current looking for a property to purchase. My loan officer has told me the VA limits properties to 25 acres or less. Also, not to look at mobile homes. Is this true?
Hi Trent. The VA guidelines do not restrict eligible borrowers from buying homes on large parcels or mobile homes on fixed foundations for that matter. Your lender likely has its own restrictions. If you are set on these types of properties then look for a VA approved lender that finances them. As long as the home meets VA minimum property requirements as determined by an appraisal, the property should qualify for VA funding. Good luck!
i am currently applying for a va loan. the only problems is in our current house we owe more than what it would sell for. will the va loan let us build/ buy our new home and rent out our current home?
I already own a mobile home. Will the VA let me buy a plot of land to put it on?