VA
Property Types

The U.S. Department of Veterans Affairs (VA) offers VA loans to help veterans, active duty service members, and eligible surviving spouses purchase or refinance homes. VA loans come with various benefits, including no down payment, competitive interest rates, and no private mortgage insurance (PMI). However, not all property types qualify for VA loans.

VA ELIGIBLE PROPERTY TYPES

Single-Family Homes
– Primary Residences VA loans are primarily for buying a primary residence. Single-family homes are the most common type of property eligible for a VA loan. The home must be in good condition, meet VA’s minimum property requirements (MPRs), and be move-in ready.

Multi-Family Homes
– Up to Four Units VA loans can be used to purchase multi-family properties (duplexes, triplexes, or fourplexes) as long as the borrower lives in one of the units as their primary residence. The borrower can rent out the other units, which can help cover the mortgage payment.

Condominiums
– VA-Approved Developments Condos must be part of a VA-approved development or complex. The condo association needs to meet specific guidelines, including financial stability and certain legal requirements. Buyers can check if a condo is VA-approved through the VA’s website.

Townhomes
– Eligible if Attached or Detached Townhomes are similar to single-family homes and are eligible for VA loans. They must meet the same criteria, including being used as a primary residence and satisfying the MPRs.

Manufactured and Mobile Homes
– Permanent Foundation Requirement Manufactured and mobile homes can qualify for VA loans, but they must be on a permanent foundation and meet specific VA and lender requirements. Additionally, some lenders may be less willing to finance mobile or manufactured homes, so availability may vary.

New Construction Homes
– Built to VA Standards VA loans can finance newly built homes as long as they comply with VA requirements, including obtaining proper permits, warranties, and inspections. Some builders are also VA-approved, which simplifies the process.

Modular Homes
– Must Meet VA Requirements Modular homes, which are built off-site and assembled on a permanent foundation, are eligible for VA financing. They must meet all local building codes and VA property requirements.

Planned Unit Developments (PUDs)
– Eligible Under VA Guidelines PUDs are communities of homes with shared amenities such as parks, pools, or playgrounds. Homes in PUDs can qualify for VA loans, as long as the individual home being purchased meets VA standards.

Farm Residences
– Not for Agricultural Use A VA loan can be used to purchase a farm residence if the property is primarily residential. The loan cannot be used to finance the business operation of a farm or any agricultural components. The home must be used as a primary residence.

PROPERTY TYPES NOT ELIGIBLE TO FINANCE WITH A VA LOAN
– Investment Properties: VA loans cannot be used to purchase homes intended purely for investment purposes.
– Vacation Homes that will be used as secondary or vacation properties are not eligible.
– Co-ops Cooperative housing units (co-ops): are generally ineligible for VA loans unless approved by the VA, which is rare.
– Commercial Properties: Any property intended for commercial use, such as office buildings or retail spaces, is not eligible under the VA loan program.

 Key VA Loan Requirements for Properties
– The property must meet the VA’s Minimum Property Requirements (MPRs), which ensure the home is safe, sound, and sanitary.
– The borrower must occupy the property as their primary residence within a reasonable time after closing (usually 60 days).
– Appraisal and Inspection A VA appraisal is required to determine the home’s value and ensure it meets MPRs. This is different from a home inspection, which is still highly recommended to assess the property’s condition.

By offering flexibility in property types, VA loans provide veterans and service members with a variety of options when purchasing a home, while focusing on safe, livable, and owner-occupied properties.