Can I Purchase Land Using A VA Loan .pdf
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Can I Purchase Land Using
A VA Loan?
Is It Possible to Purchase Land Using
You have served the country and now it is time to put some of those hard-earned benefits to
good use. One way the government has set out to help veterans is with respect to home
ownership or purchase land using VA loan.
A VA loan is a great way to find the capital needed to get into a home that will provide for
the safety and security of your family for years to come. However, these loans come with
certain stipulations that must be met before the money can be used.
Many people rightfully question if the loan can be used for the purchase of land itself. There
is good news on this front. But, once again, certain conditions must be met. This post will
address those issues.
It Comes Down to the House
If you are looking to use this type of a loan to buy land, you will need to show that you have
plans to build a house on it right away. That is pretty much the only major stipulation on the
However, keep in mind that all the other guidelines governing this program still exist as well.
It is true that most veterans use the program to purchase an existing stand-alone singlefamily house or condominium. There is much more flexibility built into this type of mortgage.
First, secure a firm contract to build a home on an existing piece of land. Then work with a
VA lender to include the purchase of the entire property into the deal.
To become eligible for a VA loan, a veteran personally must occupy the home for a certain
length of time. This precludes you from purchasing a home specifically for rental purposes.
However, it does not mean a home must be finished at the time the loan is closed.
VA rules stipulate that you can buy land and then proceed to build the home on it. You’ll want to pay
careful attention at this point the following types of homes and construction types will qualify under
Newly Constructed Homes
Mobile Homes Under Certain Situations
If you do wish to place a mobile home on your purchase land, it is important to keep in mind
that the VA requires a permanent foundation be present. This is because the American
taxpayer is the guarantor for the loan. And the program is not designed to allow for the
possibility of a vacant lot to be foreclosed upon.
Herein lies the key. If you can prove that you are going to have a home on the land, and you
can produce the documents to this effect, you may qualify for financing so long as all other
VA requirements are met. Not all lenders will be willing to finance this deal. Particularly if
you are looking to put a prefabricated home on the lot. Be sure to shop around until you find
one that does.