VA Loan Rules for Land Purchases

You can forget that a home within the suburbs is maybe not the only choice a first-time house buyer has by having a VA home loan. There are numerous solutions therefore the Department of Veterans Affairs has anticipated quite a few with regards to buying property and selecting options.

For instance, are you aware the VA will approve mortgage loans for qualified borrowers who desire a home that is custom-built? A construction loan has rules and procedures certain into the problems linked to having an innovative new house built from scratch in place of a current home.

The VA Lender’s Handbook has a number of things to state about the use of the VA loan benefit for land acquisitions. Based on Chapter Three for the handbook, “eligible purposes” for a VA mortgage loan through the capacity to “purchase or construct a residence, including a condominium or unit that is cooperative become owned and occupied because of the veteran as a home.” The guidelines consist of some stipulations concerning exactly what do be purchased:

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