Not everyone wants a house in the suburbs. Many people dream of building a home in the country with a range of features that they choose for themselves. VA Loans, in most cases, can’t be used to buy raw, unimproved land. This is because they are intended to purchase a priily will live in. There is an exception built in, however, for people who want to buy land and a custom-built home at the same time. If someone is buying a lot to build immediately and funds a construction loan simultaneously, they can qualify for a VA loan.

Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction

A VA loan can only be used for land if the borrower intends to build a home on the property right away. The loan, in this case, would be made for the purchase of the land and the construction of the home at the same time. Land cannot be purchased using a VA Loan if the plan is to construct later-the purchases must occur simultaneously. USDA loans, despite specializing in rural and suburban areas, have similar restrictions.

What about a buyer who sees a plot of land they can’t pass up but isn’t ready to start building a home to live in? Leggi tutto