Can You Buy Land With a VA Loan?
It is possible to purchase land with a VA loan, but you have to do it at the same time as building a new house. Even if you want to build a house later, you cannot use a VA loan to buy land on its own.
How to Buy Land With a VA Loan
Though it sounds complicated, the main idea is this: If you’re just buying land, a VA loan won’t work. Purchasing land and constructing on it immediately? The VA will approve it.
If you want to use the benefits of your VA loan to purchase land, you usually have three options:
- Finance the building of your intended house and the land you plan to put it on at the same time with a VA loan.
- Buy land using some other means of financing. Next, utilize the proceeds from your VA loan to build your house.
- Purchase land and build your house with additional funding, usually a construction loan with a short term. Refinance the construction loan into a VA loan after everything is finalized.
You are able to use a VA loan to build on land that you already own or that you inherited. Additionally, if you originally bought the land with a different kind of loan, you might be eligible to refinance after your house is built.
Does Veterans United do land loans?
Like the majority of VA loan providers, Veterans United does not provide loans for new construction or land. We do, however, frequently assist Veterans who are interested in these types of loans. After closing, veterans who hire a builder or local lender to construct their home can frequently refinance it into a VA loan.
Rules for Buying Land & Constructing a Property
Similar to other VA loans, there are specific requirements that must be fulfilled if you intend to use your benefits to purchase land and build a property.
Here are the big ones:
- There can be no more than four units in the property you build. Every unit needs its own connections for gas, electricity, water, and sewage, and you have to reside in one of the units as your primary home.
- The property must be affixed to a permanent foundation.
- The property needs to adhere to all local and federal building codes as well as the VA’s minimum property requirements.
- The property cannot be situated near a railroad track, airstrip, highway, or other noisy area that could flood. ).
- The property cannot be close to a hazardous material facility, dump, or landfill.
- The terrain cannot be susceptible to earthquakes, landslides, or other geological instability.
Naturally, in order to be qualified, you’ll also need a current Certificate of Eligibility, and your builder needs to have a current VA ID. Find out more here about the specifics of VA construction loans.
VA Loans for Land and Construction Aren’t Common
Although the VA permits it in theory, most lenders do not provide VA loans for building and land acquisition. These loans are typically riskier, and if you find a lender who will give one, there might be additional requirements for a down payment to help with the risk.
This can be avoided by funding the purchase of the land and the construction of your home with a construction loan or other financing option, then refinancing into a VA loan after the home is completed. In such a case, you would then qualify for a VA loan with a standard zero-down payment.
Ultimately, yes, you can buy land with a VA loan, but there are certain tight requirements. Additionally, it might not be the simplest or most economical path to becoming a homeowner.
See What You Qualify For
To talk with a specialist about the benefits of your military service, please answer the following questions.
Check Your$0 DownEligibility Today!
1. realtor. com is running the sweepstakes and assisting with its administration and promotion. 2. NMLS #1907 (nmlsconsumeraccess. org). Not affiliated with Dept. of Veterans Affairs or any government agency. 3. May be subject to tax withholding. See.
FAQ
Can you use your VA loan for land?
Yes, in a nutshell, you can use a VA home loan to purchase land. It must be away from high-voltage electrical lines, unstable terrain with a high frequency of landslides, sinkholes, and earthquakes, as well as flood and airport noise zones.
What property Cannot be financed with a VA loan?
Vacant land is not eligible for VA financing. Even if you intend to build a house on the land in the future, you cannot buy a plot of land with a VA loan. To use a VA loan for land purchase, the property must be developed as a primary residence right away.
Can VA loan be used to build a house?
Veterans who own land or intend to buy it can utilize a VA construction loan to construct a single-family home. Nevertheless, there are limitations on using a VA loan to buy land. Veterans cannot use a VA loan to purchase land unless they plan to start building as soon as they make the purchase.
Can I use my VA home loan for an RV?
Borrowers often wonder about houseboats or RVs. The VA says no. A VA loan cannot be approved for any property that does not have a permanent, fixed foundation. But if you’re searching for a mobile or modular home, condo, townhouse, single-family home, or even a mobile home, a VA loan is a fantastic choice that you should look into.
Read More :
https://www.veteransunited.com/valoans/va-land-loans/
https://www.benefits.va.gov/BENEFITS/factsheets/homeloans/FarmLoans.pdf