Can I Buy Land with My VA Loan Benefit?
One of the most common questions about VA loan benefit involves the purchasing of land. The answer to this question is “somehow.� This is because you have to show commitment to develop the piece of land that you want to purchase. This means that you have to get into a contract to prove that you require land to put a house on it. Most of the VA mortgages are set for condominiums and single family residences. However, the VA program is more flexible and not limited to only these types of properties. For you to be eligible for VA financing, the property must be occupied by a veteran for some time. This doesn’t mean that the house has to be complete by the time of closing. VA laws allow you to purchase a piece of land and then construct your home. The type of home you construct can be a new one, a mobile home, a pre-fab or original construction. The actual process of putting a house on a piece of land is trickier than it may seem. For new constructions, prefabs, modular and mobile homes, you will be required to go through a lot of red tape. This includes approval from VA officials through VA inspectors. This process is not only time consuming but also expensive, and most financiers tend not to get involved in such a process. In case you want to install a mobile home, it should have a permanent foundation. To qualify for a VA loan to purchase land, the land can either have a house situated on it or you plan to have your home constructed there. However, you cannot use a VA loan to purchase land and wait for a long time before you construct your house. This means you cannot use the piece of land that you have acquired using your VA loan for commercial purposes.