The VA home loan benefit is relegated to those who serve or have served in our armed forces. Veterans, active duty personnel and qualifying National Guard and armed forces Reserve members can all take advantage of this unique mortgage program. No money down, low closing costs, competitive rates and no monthly mortgage insurance. It’s a well-deserved entitlement. So what can the VA loan be used for?
The primary focus for the VA loan program is and always has been to assist veterans buying and owning their own home. Since its inception in 1944, the goal has always been the same. That being said, the VA program is used to buy a primary residence. It’s not to be used to by investment real estate or other non-owner occupied property.
However, that primary residence isn’t limited to just a single family home. The VA home loan can be used to acquire two, three and four unit properties, sometimes referred to as a duplex, triplex or fourplex. As long as the veteran lives in one of the attached units, it qualifies as a primary residence. This can also be an advantageous way to have all or part of the borrower’s mortgage payment offset by rental income.
VA loans can also be used to finance condominiums, town homes and so called “garden homes.” Such projects will need to be approved by the VA in advance. That means when making an offer on a condo, it’s important to check with the homeowner’s association or management company to check if the project does in fact have the VA seal of approval.
Simply put, as long as the property is considered residential and the veteran intends to occupy the home as a primary residence, a VA loan can be used to finance the purchase just like any other loan program.