4 Types of Properties You Can Buy with a VA Home Loan
The most practical step to move you forward in getting the home of your dreams is to explore the most viable options for purchasing a home. In our previous blog, we mentioned that the first task in choosing a home loan is to identify the best type of home mortgage loan to suit your needs. In that same article, we mentioned that if you are an active duty or veteran of the armed forces, VA home loans could be one of your options for purchasing your ideal Texas property. We will pick up on that today by looking into the types of properties you can purchase through the VA program. Here’s what we have on our list:
If you are toying with the idea of choosing a condominium or townhouse, rest assured that you can purchase any of these two through a VA loan. But in order to do so, the entire condominium or townhouse complex must first obtain a VA approval. To keep it simple and uncomplicated, consider buying a condominium or townhouse unit from a complex that has been previously approved by the VA program. You can check the list with the VA or ask your lender to determine the approval status of the property in question. In the event that the property you are interested in is not housed in a VA-approved complex, your lender will have to seek approval directly from the VA.
Manufactured homes, oftentimes referred to as mobile homes, are also included in the list of property types eligible for VA loans. The tricky part there is on finding a lender that will be amenable to funding a manufactured home. Since manufactured homes tend to depreciate in value over time, lenders are typically hesitant to agree to a home purchase loan that involves this type of property.
If you plan to buy a modular home, the good news is that this type of property is eligible for a loan through the VA program as well. It’s also easier to seal a deal with a lender for a modular home as compared to a manufactured home since these properties typically appreciate in value over time. Take note, though, that in order to qualify for the loan program, the modular home must be attached to a permanent foundation.
How about a newly-constructed home? Is it possible to obtain a loan for this type of property? The short answer is yes, it is. However, obtaining a VA loan for such properties pose a great challenge to borrowers because the process involved in VA loans approval for new construction involves several scrupulous inspections. After these inspections have been conducted, the borrower still has to wait for the loan approval to come through as well. It may take a long while to put everything together and as such, this is not a wise option for those who cannot afford to wait this out.
More than exploring home mortgage loan types, you must also have a strong sense of familiarity with the properties that are eligible for each type of home loan. By knowing these, you can come up with financially feasible choices as you move through this critical decision-making phase.
At Texas Lending, we are committed to helping Texas families come up with financial decisions that agree with their current financial status, as well as their personal preferences and lifestyle. We don’t just provide them with a list of home loan options, we sit down with them and discuss how each home loan option works and how it may impact their personal financial situation. Call our loan officers today for an in-depth discussion about VA home loans in Texas.