VA cannot guarantee loans made for ineligible loan purposes. Below are some examples of ineligible reasons:
- Purchase of unimproved land with the intent to improve it at some future date (that is, the land purchase is not in conjunction with a construction loan).
- Purchase or construction of a dwelling for investment purposes.
- Purchase or construction of a combined residential and business property, unless, the property is primarily for residential purposes, there is not more than one business unit, and the nonresidential area does not exceed 25 percent of the total floor area.
- Purchase of more than one separate residential unit or lot unless the veteran will occupy one unit and there is evidence that the residential units are not available separately, the residential units have a common owner, the residential units have been treated as one unit in the past, and the residential units are assessed as one unit, or partition is not practical, as when one unit serves the other(s) in some respect; for example, common approaches or driveways.
For additional Eligibility Information, consult a VA Loan Specialist now.