Property Types That Are Eligible for VA Loan Financing
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Tucson / Phoenix Arizona: A VA home loan is a mortgage insured by the Department of Veterans Affairs (VA) to help veterans, active-duty service members, reservists, National Guard members, and some surviving spouses become homeowners. VA loans are truly amazing. But what property types are eligible for VA loan financing?
Property Types That Are Eligible for VA Loan Financing
The VA lender handbook (VA 26-7) specifies the types of properties that can be financed with a VA home loan. Here are the kinds of homes you can purchase using a VA loan:
Single-family homes: These are the most common properties purchased with a VA home loan. They include traditional homes and properties in a Planned Unit Development (PUD).
Multi-unit properties: These consist of multiple units, each rented to different tenants. Examples include apartments, duplexes, and triplexes. Qualifying buyers can purchase up to a four-plex, provided they occupy one unit as their primary residence.
Condominiums: Available to eligible borrowers, but they must be VA-approved. Your lender and real estate agent can help you find acceptable units on the VA’s list. Read article here: Buying a Condo
Manufactured homes: These are acceptable if they meet the VA’s minimum property requirements. However, because these properties depreciate, it can be challenging to find a lender willing to finance them. We do them if you have questions.
New construction homes: The VA provides financing for building a new home. However, finding a lender to fund the entire construction can be difficult. Instead, you can get a construction loan from a local builder or lender and then refinance it into a VA loan once the home is complete. Read more here: Build In Arizona: Easy VA Construction Loan Guide
VA renovation loans:
VA renovation loans: These are similar to traditional VA loans but include renovation costs. Eligible borrowers can choose from three options:
- VA loans for remodel and repair: This combines the home’s purchase price and the renovation costs into one loan with a single monthly payment. The amount you can finance depends on the “as-completed” value of the home after renovations.
- VA energy-efficient mortgage: This loan finances home improvements such as insulation, storm windows, solar systems, and new water heaters.
You can read more on VA Renovation Loans here: Revamp Your Dream Home: Mastering VA Renovation Loans
Refinance VA loans:
If you have a VA loan, you can refinance with a VA Streamline Refinance (IRRRL) to get a lower interest rate or switch from an adjustable-rate mortgage to a fixed-rate mortgage. Most lenders require a minimum credit score, income, or appraisal, and no late payments in the past year.
You can also opt for a VA-backed Cash-out Refinance loan, which allows you to take out money from your home equity for expenses like debt repayment, school fees, or home improvements. This option requires a minimum credit score and an appraisal, your home must be your primary residence, and a VA funding fee may be required at closing.
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Joseph Small and Team at Patriot Pacific Financial Corp – Arizona’s VA Home Loan Experts! – have 20+ years of experience of helping eligible veterans and active-duty service members use their VA home loan benefit. Joseph is also a certified Veteran Mortgage Advisor. Give us a call to get started. #whoyouworkwithmatters
Joseph Small is licensed in Arizona (0919258), Alabama (ID 90940), Colorado (CO-#100538700), Florida (FL-LO129218), South Carolina (MLO-380188) and North Carolina (I-219980), if you need assistance with a purchasing or refinancing a home.
**All loans subject to underwriter approval. Terms and conditions apply, subject to change without notice. Patriot Pacific Financial Corp is an Equal Housing Lender.
