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VA loan requirements

VA loan requirements

As a VA lender evaluates a VA loan application, there are actually two separate approvals- you and your new home. Your approval consists of documenting your income, assets, credit and other requirements while at the same time the property must also be approved. Both must have their own approval or the loan will be declined. What types of properties are acceptable?

Good to Go

First, all properties financed using a VA loan must be your primary residence and not rented out and used as an investment. That said, properties that VA home loans can be used for include single family homes, duplexes (1-2 units) and four plexes (2-4 units).

Condominiums are also eligible for VA financing as long as the project meets VA condo guidelines. Townhouses are also okay in the eyes of the VA again as long as the project passes VA muster. Manufactured homes can be financed with a VA loan as long as the home is permanently fixed to a foundation, be at least 400 square feet for single wide homes and 700 feet for double wide units. Modular homes, homes that are built at the factory and constructed onsite, may also be eligible.

In Addition

All properties, regardless of type, must also meet VA standards called Minimum Property Requirements, or MPRs. A partial list of MPRs include:

  • The property must be residential in nature and not zoned for commercial.
  • All mechanical systems, including heat and air, must be operable and in satisfactory condition.
  • Hot water must be available to the unit as well as potable drinking water.
  • The roof must be in good condition
  • Lead-based paint must be identified and ameliorated
  • No evidence of wood destroying pests such as termites or carpenter ants.
  • Deferred maintenance should be corrected such as exposed wiring, torn flooring or any physical hazard

Overall, the property must be in good physical condition and be habitable by the general public. Once you identify an eligible property, you next need to make sure the property meets the MPR list. Happy hunting!

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