The VA home loan program, designed to benefit eligible veterans, active-duty service members, and certain members of the National Guard and Reserves, offers an array of advantages for purchasing a home. One important question prospective buyers often ask is: what types of properties can you buy with a VA home loan? This guide outlines the various property types that are eligible under this loan program.
One of the most common types of properties purchased using a VA home loan is a single-family home. These residences are designed for one family and provide the perfect opportunity for veterans and service members to settle down in a neighborhood, often with favorable mortgage terms and no down payment required.
VA home loans can also be utilized to purchase condominiums. However, it’s essential that the condo association is on the VA’s approved list of properties. This ensures that the building meets specific safety and habitability standards. Buyers should check the VA’s approved condo list before making an offer on such properties.
Eligible veterans can buy multi-family properties with up to four units, provided that they intend to occupy one of the units as their primary residence. This option can be particularly appealing for those looking to invest in rental income while also providing a home for themselves.
Manufactured homes, which are built off-site and then transported to their location, are also eligible for VA home loans. However, they must be permanently affixed to a foundation and classified as real estate. Buyers should ensure that the manufactured home meets the VA’s guidelines to secure financing.
Planned Unit Developments, which consist of a group of homes that share common amenities and may have homeowners associations, can also be financed through VA home loans. As with condominiums, it’s important to ensure the PUD is on the VA’s acceptable list to qualify.
In some cases, veterans may also use VA home loans to purchase a lot to build their own home. However, this is subject to specific conditions, such as the requirement to construct the home within a certain timeframe, often within 12 months. The buyer must also qualify the loan based on the future property’s estimated value.
While historic homes are not inherently excluded from VA financing, they must still meet the VA’s criteria for safety and habitability. Buyers should conduct proper inspections and check for any special restrictions related to the historic status before pursuing a loan for these properties.
The flexibility of VA home loans allows eligible individuals to purchase a diverse range of properties, from single-family homes to multi-family units and manufactured homes. Understanding the specifics of what types of properties can be financed with a VA loan is crucial for veterans and service members looking to make informed real estate decisions. Always consult with a knowledgeable VA loan specialist to ensure compliance with all eligibility criteria and property requirements.
