Can Veterans Get VA Loans for Farms?

Being in the military probably isn’t your only interest. Even if you make it your career, there will come a time when you want to pursue other things. For some military members, this can be a civilian job in the city, but for others, this can mean finding a large property and starting a farm that can grow with your family for generations. As a military member, you’re eligible for VA mortgage loans, but can you use those loans to cover the purchase of a farm, not just a regular house? The answer is “yes,” but there are a few restrictions.

There Must Be a Residence on the Property

For a farm to be eligible for purchase using VA mortgage loans, there must be a house on the property where you and your family intend to live. That house must be your primary residence and can’t be a weekend getaway or a vacation home. If there’s not, you may be able to use a VA loan to fund the construction of a primary residence on the property, but you’ll want to speak with your lender to discuss your options.

The Appraisal Should Only Cover Residential Structures

Farms almost always have other structures on the property beyond the standard farmhouse. These often include work sheds, barns, and storage areas or garages. Luckily, you can use VA mortgage loans to cover the cost of those outlying structures, but they can’t exist without a permanent residence.

If the previous owner is including farm equipment, livestock, and other non-residential property in the sale, those items won’t be included in the appraisal. If the seller wants money in addition to the value of the residential and outlying structures, it’s up to you to find a way to pay for those items. If you have cash on hand, you may be able to use it to help cover the cost. But if not, you may need to consider applying for a separate loan in addition to your VA mortgage loan.

It Should Be a Working Farm

If you’re using a VA loan to fund the purchase of a farm, you’ll need to use the farm to produce at least some portion of your monthly income. You may be required to demonstrate or prove your ability to perform standard farming tasks before you can qualify for the loan.

Try to Get Preapproved

The best thing you can do before you start looking for farms is to get preapproved for VA mortgage loans. Get your Certificate of Eligibility in order and speak with a lender about your options. This will help you narrow down your search for a suitable property and can save you time when you’re truly ready to buy.

Apply Today

If you’re interested in buying a farm and working the land after your military career is over, don’t settle for a standard mortgage. Contact our team and discuss your options for VA mortgage loans. We’ll help you find the right loan for your needs so you can get the farm you’ve been dreaming of.