What Can a VA Home Loan Be Used For?
The VA Home Loan: The VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA). The VA home loan program was created in 1944 as part of the GI Bill of Rights. The goal of the VA Loan was to support those who served the United States during World War II. Last year, 2014 this program celebrated it’s 70th year, and continues to play a vital-role today. Since World War II this governmental program has provided loans for over 20 million homes.
Uses For A VA Home Loan:
- To buy a house
- To buy a townhouse or condominium unit that is VA approved
- To build a home
- To repair, improve, or alter a home
- Cash-out refinance for “green” upgrades such as solar heating and/ or cooling system or other energy efficient improvements
- To simultaneously purchase and improve a home
- Refinancing an existing VA loan to get a better interest rate
- To buy a manufactured (mobile) home and/ or lot.
What a VA Home Loan Cannot Be used For:
- An investment property (exceptions granted for refinancing with the IRRRL program)
- Residential property/business with less than 75 percent living space
- Multi-family unit housing that is not owner occupied
- Raw land with no specific date for construction
Today, the VA Home Loan program is more important than ever to service members. With benefits such as lower payments, no down payments, opportunities for those who otherwise wouldn’t quality, and help for first-time home owners consider applying for a VA home loan today.