How well do you know about veterans home loans? Have you ever wondered if the home you saw in the advertisement meets the VA financing?
Below outlines the types of homes and properties you can and cannot purchase with veterans home loans.
Properties You Can or Cannot Purchase with VA Home Loans
- You can purchase any home regardless of cost with veterans home loans.
Any eligible borrower can buy a single-family house or a multifamily house to live in. Technically, there is no limit to the home price you can buy. However, there are loan limits, depending on the amount of your down payment. Presently, a VA mortgage loan can range from $453,100 to $679,650 depending on the area of the home. You get to enjoy a no down payment when you purchase a residential house in any US county if you avail the loan limits.
Notably, some veterans home loans limits are higher than in other counties. Why? For instance, California’s San Francisco has higher property costs compared to Missouri’s Jefferson City. Moreover, that means without higher VA loan limits, eligible service members would be limited to only the least desirable homes.
- You can purchase a mobile home or manufactured home with a VA home loan
Some veteran borrowers might consider buying a manufactured home because of its lower cost compared to a conventional stick built home. Yes, VA allows veteran borrowers to purchase a manufactured home and the property you put it on with a VA mortgage loan. However, this program is not available with all VA lenders.
If you are looking for this type of loan, the best thing to do is communicate with multiple VA lenders.
- You cannot purchase a vacation house with a VA loan
According to VA occupancy rules, a home financed with a VA mortgage must be the homebuyer’s primary residence. That being said, VA loans can’t be used to purchase vacation homes or investment properties. However, some circumstances allow a veteran borrower to purchase a second home depending on its remaining entitlement and his unique situation.
You Cannot Purchase Property Outside the US and its Territories with a VA loan
The Department of Veterans Affairs does not allow home loans to buy properties outside the US. Nevertheless, an eligible borrower can purchase any property located in an American territory or its possession. And so, purchasing a home in American Samoa or Puerto Rico is no problem at all. Just don’t forget to check with your VA lender for any specific and/or legal requirements for a hassle-free loan process.
You cannot purchase an investment property with a VA home loan
VA loans cannot be used to purchase an investment property. However, you can always buy a home with a VA loan and pay the loan off. After that, the property is officially yours, and you have the choice to do whatever you want with it which includes renting it out.
Also, veteran borrowers must not flip homes with a VA home loan. The goal of the VA loan program is to provide special home buying benefits to veterans. These benefits are better than any other program, and VA lenders don’t want veteran borrowers taking advantage of this home loan program.
You might not feel you have all the options when it comes to purchasing a home. However, most of the houses across the US are VA eligible. Home buyers looking for a new home to live in can benefit from the VA loan program.
So, are you a veteran wanting to purchase a home anywhere in the US? Check out these loans for veterans.