Can VA Loans Be Used to Buy Land?

It should come as no surprise that buying a pre-built house is the most convenient way to buy a home. You’ll have everything you need to get settled and build your life as soon as you close on the property. Unfortunately, pre-built homes aren’t easy to customize and many people want to be able to buy land and build their dream homes, but can Delta VA loans be used to buy raw land? Yes, but there are a few restrictions.

You Must Plan to Build Your Primary Residence

Buying land with Delta VA loans is possible, but you must plan to use that land to build your primary residence. This can be a multi-unit structure, but you must occupy one of those units yourself, even if you plan on renting the rest out. If you’re just looking to buy land as an investment, you’ll need to get a different type of loan.

The Land Must Be Safe

Safety, as it applies to VA loans, doesn’t just mean that the property is located in a good neighborhood. It also needs to meet the VA’s guidelines. This means the land must be in a flood-free area, not located near an airport or railroad tracks, and must be far away from other hazards.

If the land is located in an area where natural disasters are common or chemical spills could pose a safety threat, you won’t be able to use a VA loan to finance the purchase. You’ll be able to find a property that the VA considers safe by working with a real estate agent who understands the VA requirements and the unique needs of military families.

Your Proposed Home Must Be on a Foundation

You can’t use a VA loan to buy a property that you want to live on in a camper. Your future home must be built on a permanent foundation. Keep in mind that you can always install a mobile or manufactured home on a foundation if you want to forgo the expense of building a custom home.