What can be bought with VA-guaranteed home loans? The Department of Veterans Affairs has multiple loan programs to help with home ownership. Let’s review them.

Before listing the types of real estate that can be bought with VA-guaranteed loans, let’s understand the initial criteria. Any real estate must be located within the U.S. or U.S. territories. No real estate located in other countries is eligible. And, there must be a residence either existing upon purchase or to be built shortly after the purchase of the land that you, as the borrower of a VA-guaranteed loan, will occupy.

Here’s that list:

Single-family/detached homes. These can be either move-in ready or “fixer uppers”.

Townhomes. These can be either move-in ready or “fixer uppers”.

Condo residential units approved by the VA. Condo residential units must be on VA’s approved list.

Manufactured homes. Manufactured homes include mobile/trailer homes.

Modular homes. Modular homes are those where components like walls and roofs are constructed off-site and assembled at the home site.

Farms with a residence. A farm with a home is eligible, and the borrower must occupy the home.

New construction homes (a home a buyer intends to build). This is where a borrower buys or owns land with a home construction plan in place.

Multi-unit homes with no more than 4 residential units. These are a single building with multiple residential units. The buyer must occupy one of the units.

Native American Direct Loan. The Native American Direct Loan can be used to purchase or build homes on Federal Trust Land.

There are additional VA loan products to help with home purchasing. These include:

• Refinance loans. A borrower can refinance a non VA-guaranteed loan to convert it to a VA-guaranteed loan. An existing VA-guaranteed loan can be refinanced as well. Either situation could result in a lower interest rate and no mortgage insurance payments. The loan holder may be able to draw against the equity (e.g., cash-out).

• Energy Efficient Loan. An energy efficient loan is an additional loan borrowed in conjunction with a home loan to cover expected cost of implementing energy efficient components in the home.

• Alteration and Repair Loan. This loan is borrowed in conjunction with a home loan to cover costs of alterations, repairs, and some other renovations. This loan can be useful when buying “fixer uppers”.

• Assuming a seller’s VA-guaranteed loan. A home buyer can assume a seller’s VA-guaranteed loan. This can be valuable when the seller’s interest rate is lower than what home buyers are being offered by their lenders.

More information is provided in the following video that reviews what can be bought with VA-guaranteed home loans and important eligibility information. There’s also more information regarding real estate planning and real estate transactions at https://veteranrealty.us/good-info-to-know/.