Properties You Can Purchase With a VA Loan

The VA loan program was originally created in order to open the doors of homeownership to more veterans, military members and their families. This program focuses on helping qualified borrowers purchase residential properties they’ll live in as a full-time home. Purchasing or selling a home is a complicated process. Luckily, veterans and military personnel have benefits that will help them reach their goals of becoming home owners. Below we have listed some advice and properties you can purchase with a VA loan.

Heroes San Diego is a nationwide resource available to our Heroes. We assist you with the entire home buying or selling process. Unfortunately, there is plenty of misguidance when it comes to purchasing a home, especially when you are trying to figure out what you can do with your benefits. That is why Heroes San Diego was born! We are here to help you! Our team will provide you with current and accurate assistance, and you will own a home in no time! Check out our other blogs featuring some of our closings this year.

Acceptable VA Loan Uses:

• Buying a single-family home. Single-family homes are a great option for a multitude of buyers. They are the most commonly purchased property of VA loan recipients.

• Buying a condominium unit in a VA-approved development. Condo developments need to be approved by the VA. Your lender and a VA- real estate agent  (Heroes San Diego) can help you identify suitable properties if you are on the search for a condo. With help from your lender, you can ask the VA to approve a development that isn’t on the list. It is important to understand that this process can take months to complete.

• New construction. The VA also allows for a $0 down VA construction loan to build a new home! It’s difficult to find lenders willing to actually fund the construction of a new home in today’s economic environment. A more common approach is to obtain a construction loan from a builder and then refinance the short-term loan into the VA program.

• Manufactured home. The VA does allow for manufactured homes. It can be tricky to find VA lenders willing to finance these properties. Manufactured homes also known as “mobile homes”, generally decrease in value over time, making them a risky investment for lenders. 

• Modular home. Your VA load also allows you to purchase a modular home. These are not the same as a manufactured, or mobile, homes. Mobile homes are built to national HUD standards and have a HUD identification tag. Modular homes are normally built on site using pre-made pieces. Purchasing a new modular home may require the use of a construction loan. However, if you buy an already existing modular home, then it’s treated the same as any other stick-built home.

• Buying a multiunit property. Military buyers can purchase up to four one-family residential units in a multiunit property. At least one of those units must be used as the buyer’s primary residence. Duplexes are some of the most common.

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What you CANNOT do with your VA Loan

Lenders can add their own restrictions on loans. This list may give or take depending on your situation, and who you are working with. Don’t let this list discourage you! Acceptance or denial from one lender does not translate into acceptance or denial from all lenders. And remember, there are way more pros to using a VA loan compared to cons.

• Purchasing a home as an investment property. Veterans cannot use VA financing to purchase a home only as an investment property. VA loans are designed to fund primary residences for service members. However, speak to our team for more information!
• Using as a business loan. VA loans can’t be used to purchase a storefront, office space or any other non-residential properties.
• Buying unimproved land. Veterans can’t use VA loans to purchase bare land or farm ground that does not contain the borrower’s primary home. You also cannot buy land with the intent of eventually putting a house on it.
• Buying abroad. VA loans are only used for properties in the United States and its territories, which include American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.