Can VA Loans Be Used for Vacation Homes?

You’ve worked hard for your benefits as a member of the armed forces and you should feel free to use them whenever you can. Buying a house with a VA loan is one of the best benefits available to both qualified active-duty members and veterans. One of the most common questions borrowers have is whether they can use Gig Harbor VA loans to finance the purchase of a vacation home. Here’s what you need to know.

VA Loans Can Only Cover Primary Residences

Unfortunately, you can’t use a VA loan to buy a vacation property. It doesn’t matter if you’re using it every weekend or if you’re planning on living there four months out of the year. VA loans are only valid for your primary residence.

What Is a Primary Residence?

A primary residence is an address that you use to file your taxes, register your car, and where you live the majority of your time. That primary residence can change and you can share it with other people, but you or your spouse MUST be an occupant if you want to use a VA loan to buy the property.

There Is an Exception

You’re always free to move. That means the property that used to be your primary address can always become a vacation home without forcing you to refinance into a traditional mortgage. If you have remaining entitlement, you may be able to use it to buy another home in your new location without having to sell your vacation home.

Traditional Mortgages Aren’t Off-Limits

If you’ve used a VA loan to buy a house, you can still take out a traditional loan to buy a vacation home. Keep in mind that you’ll have to satisfy different income and credit requirements to qualify for the loan. You may also need to put a down payment on the vacation home before the lender will be willing to give you a loan in the first place.

Need Help?

If you’re feeling confused about using Gig Harbor VA loans to buy a house or want to explore other loan options for a vacation home, contact us. Our lending team will help you find the best fit for your needs.