Types of Properties Eligible for a VA Home Loan?
A VA purchase loan is meant for the home you will live in. Eligible properties include single-family homes, approved condominiums, townhomes, planned unit developments, new construction and one- to four-unit properties when you occupy one of the units. Vacation homes and pure investment properties do not qualify, and every home must meet VA minimum property requirements.
Key Takeaways
- A VA purchase loan is for a home you will occupy as your primary residence.
- VA loans can finance one- to four-unit properties when you occupy one of the units.
- The home must meet VA minimum property requirements: safe, sound and sanitary.
- A termite inspection is required on VA purchase and cash-out loans, but not on an IRRRL.
What are the VA occupancy rules?
You must intend to occupy the property as your primary residence, and lenders ask you to certify that. The VA generally expects you to move in within a reasonable time after closing, commonly within 60 days. A VA loan cannot finance a second home, vacation home or an investment property you will not live in.
In some cases a spouse or dependent can satisfy the occupancy requirement when the veteran is on active duty and cannot occupy the home. A Licensed Lendia California Loan Officer can confirm your situation. Later, many veterans keep the home as a rental after moving, once the initial occupancy has been met. Ask us about your plans before you buy.
Which property types are eligible?
| Property type | What to know |
|---|---|
| Single-family home | The most common choice. Must meet VA minimum property requirements. |
| Condominium | The condo project generally needs to meet VA approval standards. Check before you make an offer. |
| Townhome or planned unit development (PUD) | Typically eligible. |
| Two- to four-unit property | Eligible when you live in one unit. Rental income from the other units can help you qualify. |
| New construction | Eligible with the right documentation and inspections. |
| Manufactured home | Possible when it meets VA requirements, such as being permanently affixed. See VA loans for manufactured homes. |
| Second home or pure investment property | Not eligible. |
Can I buy a multi-unit property with a VA loan?
Yes. One- to four-unit properties qualify if you occupy one unit as your primary residence. That makes VA financing popular with buyers who want a duplex, triplex or fourplex and to use rent from the other units. Lenders count only a portion of the expected rent, and they may ask for lease or appraisal rent information. Read more in buying a multi-unit property with a VA loan.
What condition must the home be in?
The VA minimum property requirements make sure the home is safe, sound and sanitary. The VA appraiser checks the property and reports any required repairs. Issues that can be flagged include:
- A roof near the end of its life or with active leaks
- Peeling or chipping paint on older homes
- No working heat or hot water
- Faulty electrical or plumbing systems
- Termite damage or active infestation
- Poor drainage, structural cracks or unsafe access
Required repairs must generally be completed before closing, sometimes with money held in escrow. See VA appraisal and minimum property requirements for the full picture.
Is a termite inspection required?
Yes, on VA purchase and cash-out refinance loans. It is not required on an IRRRL. In California, where older housing stock and wood-framed homes are common, the termite report often drives repair negotiations. Plan for it when you write your offer, and decide in advance who will pay for any treatment or repairs.
What about condos and HOA communities?
Condo projects usually need to be on the VA’s approved list or go through an approval process. Condo and HOA documents, such as budgets, reserves and litigation, are reviewed. If a project is not approved, the VA loan may not be an option for that unit. Ask your lender to check a project before you make an offer.
What if the home fails the VA property standards?
You have choices. The seller can make the required repairs, you and the seller can negotiate who pays, or you can walk away if your contract allows. Because the VA appraisal protects you as well as the lender, it is wise to include inspection and appraisal contingencies in your offer and to ask your agent to schedule a general home inspection in addition to the termite report.
What does this mean in California?
California homes often include older housing stock, pools, solar systems and condo associations, and some Santa Ana, Los Angeles and Bay Area neighborhoods have a lot of small multi-unit buildings. A VA loan can work well for those, as long as you plan for the appraisal, the termite report and any condo review. See VA loans for home purchase and the VA eligible properties page.
At Lendia, we check the property early
At Lendia, we review the property type and condition before you commit. Contact us before you write an offer on a condo or multi-unit home, or get a rate quote now. Rates and terms depend on your situation; approval requires qualification.
Frequently Asked Questions
Can I rent out my VA home later?
Many veterans keep the home as a rental after they move, once the initial occupancy has been met. Ask us about your plans.
Can I buy a fixer-upper?
The home must meet VA property standards. Repairs can sometimes be required before closing, and a home that is not livable may not qualify.
Can I use a VA loan for land?
A VA purchase loan is meant for a home. Raw land alone is generally not financed. Ask us about construction or new-home scenarios.
Can I buy a condo with a VA loan?
Yes, if the condo project meets VA approval standards.
Does the termite inspection apply to every VA loan?
It is required on purchases and cash-out refinances, not on an IRRRL.
Talk to a Licensed Lendia California Loan Officer
At Lendia, we review your situation and show you the programs you qualify for.