A VA loan can be a great way to buy a home, but can it be used to purchase land for a potential home? Here's what you need to know about VA loans for land.
Veterans and active duty military members may wonder if they can purchase land using their VA home loan benefit.
The good news is that yes, it’s absolutely possible, but it must be done in conjunction with building a home on that property. Lenders will not approve you for a VA loan for the sole purpose of purchasing land alone.
Let’s dive into the details on buying land with a VA loan.
There are essentially three different ways to purchase land using a VA loan:
In order to ensure the accessibility, safety and habitability of the property, the land must meet minimum VA guidelines in order to be eligible for a VA loan. These include:
While the VA does not limit the number of acres, a VA-guaranteed property may have, individual lenders may set their own restrictions.
Buying land using a VA loan is possible, but it’s not without its limitations. Most lenders do not offer VA construction loans and if you find one that does, they typically require a down payment to offset the increased risk.
Speak with an approved VA lender today for more information on how you might be able to use your VA loan benefit to help build your dream home.