Occupancy Requirements for VA Loans. … VA loans are for primary residences and borrowers are expected to live in the properties they purchase.
Moreover, can you use VA loan for an apartment?
VA Home Loans can be used to purchase:
An existing home, or a condominium or townhouse in a VA-approved project. For condos or townhomes, the entire complex must be approved by the VA before the buyer can receive a loan for one unit.
Correspondingly, how long do you have to live in a house with a VA loan before renting?
Most VA home loan agreements stipulate that you occupy the house for at least 12 months. At the end of that 12 months, you’ll likely be able to rent the house to a tenant, even if they’re not affiliated with the military.
What property Cannot be financed with a VA loan?
Vacant land is a no-no for VA financing. You can’t use a VA loan to purchase a plot of land, even if you plan to put a home on it one day. There would need to be a home in the immediate mix.
Why do sellers not like VA loans?
Many sellers — and their real estate agents — don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. … Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.
Why is a VA loan bad?
Since you need to factor in the cost of the VA funding fee, you could ultimately end up with a loan that exceeds the market value of your house. Manufactured homes may require a minimum down payment and may not be eligible for a 30-year term. You cannot use a VA loan for rental properties.