Using a VA loan to buy a house is a simple way for qualified veterans and current servicemembers to buy a house without dealing with overly high interest rates associated with conventional mortgages. However, since the loan is backed by the VA, you can expect there to be stricter and more confusing requirements that you’ll need to satisfy before you can borrow money.
One of the most overlooked VA loan requirements comes down to property zoning. If the property isn’t zoned appropriately, getting financing can be more difficult, but not impossible. Here’s what you need to know.
The Property Must Meet the Minimum Habitability Requirements
Whether you’re looking at using a VA loan to buy a fully functioning farm or want to invest in a multi-unit home that you can rent out to tenants, the property still needs to meet the VA’s habitability requirements.
This means it must have functioning heat, electrical, and plumbing systems in place. The walls and roof must be sturdy enough to make the house safe to live in while you make any necessary repairs.
If it doesn’t, the lender won’t be able to issue you the loan unless the seller agrees to make the necessary repairs to make the home safe to use.
Financing Mixed-Use Properties Is Possible
Provided that the property is in good enough condition, you’ll be able to use a VA loan to finance the purchase of a mixed-use or mixed-zone property. This means a house that’s zoned as both a residence and a commercial property is fair game. The same holds true for multi-family homes that you plan to lease to other tenants while you occupy a single unit.
The VA loan requirements are flexible and they understand that making money off of your property is something that may benefit your family in the long run.
As Long as the Property Is Sellable in the Future, You’re Good to Go
Your lender will order an appraisal of that mixed-use property before they issue you the loan. As long as the property meets the VA loan requirements and the appraiser determines that the property will be sellable for the full loan term, you’ll likely be able to qualify for a loan.
Get More Information Today
If you’re interested in buying a property with a VA loan but need more information about the current VA loan requirements and zoning regulations, don’t wait. Contact us today to speak with our experienced team about your options.
