VA loans

What Can I Do With a VA Home Loan?

April 14, 2011

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What Can I Do With a VA Home Loan?

There is a long list of approved uses for a VA home loan. Many vets and active duty military members start off thinking about traditional suburban homes when it’s time to prepare to make a VA mortgage loan application, but there are plenty of other uses. Borrowers can use a VA home loan to have a home custom built rather than purchase an existing property, and VA rules also let the borrower purchase land and pay for the construction simultaneously.

VA rules also let the borrower apply for a loan to have a home constructed on property already owned by the veteran. VA rules state “a portion of the loan may be used to refinance a purchase money mortgage or sales contract for the purchase of the land, subject to reasonable value requirements.”

The same VA loan that could be used to buy a suburban home may also purchase a condominium, or a multi-family property. These purchases are subject to VA rules. In the case of multi-unit buildings, the VA regulations state, “the residential property may not consist of more than four family units and one business unit except in the case of certain joint loans.”

VA loans can also be used to “simultaneously purchase and improve a home” or “to improve a residence owned and occupied by the veteran as the veteran’s home through the installation of a solar heating system, a solar heating and cooling system, or a combined solar heating and cooling system, or through the application of a residential energy conservation measure.”

A farm home is a type of property that can by purchased with a VA home loan that wouldn’t immediately spring to mind, but this kind of loan is also possible. The VA permits the purchase of a farm residence and farmland–but the land is to be appraised at the residential value rather than any commercial value the land might have as a result of a farming operation.

Just because a lot of people buy traditional suburban homes with the help of a VA insured mortgage doesn’t mean the borrower is limited to such choices. Whether you’re looking for a condo, a farmhouse, or a custom-designed property, a VA loan can help.

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3 Comments
  1. [...] a Buyer Cannot Do With a VA Home Loan April 14, 2011   Joe Wallace   No comments In our last blog post we covered things you can do with a VA home loan aside from purchasing a traditional suburban home. [...]

  2. Meggan

    Hi there, Any info on if you can use it to buy a Mobil home/RV/ext if you are planning on living in it full time? We want to be able to move and travel quite a bit with our first home. And the RV style home is promising for our goals. -Meg

    • Joe Wallace

      Hi Meggan, thanks for your question. An RV wouldn't be eligible for a VA mortgage loan as it cannot be classified as "real property" and can't be equipped with a permanent foundation. The same rules apply to houseboats, as well.

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