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
• 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.