buying tiny home VA loan

VA Loans

Buying a Tiny Home with a VA Loan

Tiny homes have become popular in recent years because they’re less expensive, easy to maintain, and more eco-friendly than traditional housing. However, securing financing to build a tiny home can be challenging, especially if you want to use a VA mortgage loan. Below, we’ve provided some useful information for veterans and military members about buying a tiny home with a VA loan.


Is It Possible to Buy a Tiny Home with a VA Loan?

Buying a tiny home with a VA loan is possible, but it’s more complicated than purchasing a traditional home. This is because homes purchased with a VA loan must meet the VA’s Minimum Property Requirements. Some tiny homes fail to meet these criteria. Additionally, the home must also pass a VA appraisal. The appraiser will need to use comparables to determine the value of the home. In the case of a tiny home, it can be difficult to find comparable sales since tiny homes are less common.


Challenges of Buying a Tiny Home with a VA Loan

If you have your heart set on buying a tiny home with your VA loan benefits, it’s important to be aware of the potential challenges you may encounter. Make sure you clearly communicate your intentions to your lender so they know what to expect. Additionally, you should also do your research and work closely with the builder to ensure that the home meets the VA’s requirements. Here are some important factors to consider:


Foundation & Building Code Requirements

To buy a home with a VA loan, you must purchase a property that’s built on a permanent foundation. That means that tiny homes on wheels cannot be bought with a VA home loan. Additionally, the home must have utilities and meet modern building code requirements. You should also be familiar with the VA’s Minimum Property Requirements.


Tiny Home Size

To qualify for a VA loan, the property must have sufficient space for living, sleeping, cooking and dining, and sanitary facilities. Additionally, the home cannot be smaller than 400 square feet in size. Since the average tiny home is about 200 square feet, this is something important to pay attention to.


Land Ownership

It’s also important to note that you cannot use a VA loan to buy land alone. So, if you plan on buying land and building a tiny home later, you will need to use another means of financing to purchase the plot. However, you can use a VA construction loan to buy land and build on it right away. Additionally, you’ll want to make sure that the land is zoned appropriately for building a tiny home.


Get More Information

If you’re looking for more information about buying a tiny home with a VA loan, we’d be happy to assist you. Call today to get in touch and speak with a VA home loan expert.