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Can You Buy Land With a VA Loan

No, you cannot use a VA jumbo loan to purchase vacant land. VA home loans are only available for buying existing homes, and the VA handbook forbids the use of VA loans to buy “unimproved land with the intent to improve it in the future”. That means you cannot use a VA loan if you are buying land but don’t plan to build a home on it right away. It must be imminent that a permanent primary residence will be established.

You cannot use a VA Loan to purchase only land

The VA loan can be used for the purchase of land, but it must be used simultaneously with the construction of a new home. VA loans cannot be used for the purchase of land without construction – even if the home will be constructed later. Veterans may have other options for land-only purchases depending on their current state.

A VA loan allows you to purchase land if a property is built on it

Buying land with a VA loan requires more consideration than a single-family home, if you’re looking to buy land to design and build your dream, Security America Mortgage will assist you throughout the difficult path. You cannot use a VA loan for the purchase of land unless you also plan strategies to immediately build a home on the property. Here, at Security America Mortgages VA loans are available to eligible veterans, who can use them to finance up to 100% of the purchase price of an eligible property, up to approved loan limits.

Let’s understand VA rules

VA loans are an important option for many Veteran homebuyers, including first-time Veteran buyers, seasoned Veteran home buyers, and all Veterans with this earned benefit.  As such, having a good understanding of the rules and regulations that govern these loans is essential for anyone looking to apply for this type of financing.

It also means that lenders must adhere to specific underwriting standards when evaluating VA-approved loans. These requirements include things like a minimum property value and ensuring that your loan-to-value ratios do not exceed certain thresholds.  To be eligible for a VA loan to purchase land, you must meet all of the basic requirements of a VA loan, including having adequate income and credit history. Additionally, you must be a military service member or veteran, and the property must be for your own personal occupancy – not for investment or rental purposes.

Another key aspect of VA loan rules relates to eligible borrowers. In order to qualify for this type of financing, you must either be an active service member, an honorably discharged veteran, or the spouse of a deceased veteran.  VA loans are designed for owner-occupied properties, there are occupancy requirements that must be met in order for the loan to be approved.

Here are a few ways you can utilize the VA land loan program to build that dream home you’ve always dreamed of designing. We can help you build your dream home regardless of whether you’re moving, retiring, or have finished your service and are looking to use your benefits. We specialize in VA loans, so we know both the specifics of the loan type as well as the unique circumstances of veterans. We help you make sure that your credit and income qualifications will be clear before you begin down the building path.

The purchase must meet certain requirements. You can use VA loans to:

  • The construction of a new home on your own land.
  • Existing property with a residence on it.
  • Constructing a new home on land you purchase simultaneously.
  • The purchase of farmland with an existing residence that you intend to live on

Requirements to buy land and construct the property: 

  • The property you are planning to build cannot have more than four units

When planning to build residential property, it is important to consider all of the legal restrictions that may be in place. For example, you may discover that there are limits on the number of units that can be built on a single piece of land.

  • The property should be associated with a permanent foundation

A permanent foundation is necessary in order to obtain financing and to ensure that your home can remain standing over time. It also helps to create a stronger structural base for the building and ensures that water will drain properly away from the property.

  • The property needs to meet the VA loan minimum property requirements

One of the first things you’ll need to do is ensure that the property you’re interested in meets the VA loan minimum property requirements. These requirements are in place to protect borrowers and help ensure that they’re getting a home that’s safe and livable.

  • Land cannot be situated in a noise zone or near landfills, dumps, or risky material facilities

One of the most important of these is whether or not the land is situated in a noise zone or near any landfills, dumps, or other sites that handle potentially dangerous or hazardous materials. These types of properties are typically not suitable for residential development, as they pose a significant risk to public health and safety.

  •  Land cannot be in places vulnerable to landslides, instabilities, or even earthquakes

Because land is so fundamental to human life, it needs to be in an area that is protected from the destructive forces of nature. So if you’re looking for a place to build your future home or business, keep in mind the importance of finding a safe location for your land. If the land you’re considering is in any of these risk zones, it’s best to find another property.

How to use a VA loan to purchase land and properties?

The Department of Veterans Affairs (VA) loan program is one of the most powerful benefits available to veterans and active-duty service members. It can be used to purchase land and build a home, or it can be used to purchase an existing home. If you’re interested in using a VA loan to buy land and build on it, there are a few things you need to know.

First, you’ll need to find a real estate agent who is familiar with the VA loan process and can help you find the right piece of property. Once you’ve found the perfect parcel of land, you’ll need to make sure you have a VA approved builder, your own loan approval and for property approval, you’ll get a  VA certified appraisal of the land with the property to be built plans approved with your VA lender in order to obtain financing.

The final step on a traditional VA loan is to close on the loan and take ownership of your new property. With a VA loan, you can enjoy all the benefits of owning your own piece of land and home without having to worry about coming up with a large down payment. It’s just one more way that the VA is helping veterans achieve their dreams.

Using your VA benefits to buy land and construct a home — one way to purchase land is through a local bank.  Get a VA loan to finance both the land and the home construction. If you own your land already or want to buy land before building that’s great and can help expedite your VA loan request to construct your home.

There are generally three options if you’re looking to buy land with your VA land loans benefits:

  1. By land in advance using a local bank and then use your VA loan benefit to fund the construction of your home.
  2. Utilize a VA loan to fund both the construction and the land purchase
  3. Obtain a VA construction loan which is a short-term loan that allows you to borrow the money needed to buy land and construct your home. Once the construction of your home is finalized, you can then refinance the construction loan into a VA home loan.

 Frequently asked questions (FAQ)

Can I buy land with a VA loan? 

The answer to this question will depend on a number of factors, including the type of property you want to buy and your eligibility for a VA loan. You cannot only buy land. To use VA loan benefits, you need to purchase both land and a home inside. You cannot only buy land. To use VA loan benefits, you need to purchase both land and a home inside.

How many acres can you purchase with a VA loan?

There is no limit since you meet all VA loan requirements and have entitlement. So, if you’re looking to purchase a home with a VA loan, be sure to research the loan limits for your county and plan accordingly.

How much can you borrow if you get a VA loan to purchase land and property?

It depends on your VA-approved lender and the VA loan requirements. Nonetheless, VA loans for acquiring both land are property are not common since they are assumed as risky.

Do I need to put money down if I want to buy land and a house with a VA loan? 

No. Usually, VA loans do not require a down payment. Additionally, not everyone will be eligible for a VA loan in the first place, as you must meet certain requirements.

Security America Mortgage, Inc

Security America Mortgage is one of the leading VA Home Loan Lenders in the nation; We are not a government agency. We pride ourselves on providing excellent customer service to ensure that each Veteran we serve ends up living happily ever after in the home of their dreams. This is a private website that is not affiliated with the U.S. government, U.S. Armed Forces, or Department of Veteran Affairs. U.S. government agencies have not reviewed this information. This site is not connected with any government agency.

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