CAN I BUY LAND WITH MYVA LOAN BENEFIT?

One of the most common questions about VA loans involves the purchasing of land. The answer to this question is "under certain circumstances."

This is because you have to show commitment to develop the piece of land you want to purchase. You have to get into a contract to prove that you require land to put a house on it.

Most of the VA mortgages are set for condominiums and single family residences. However, the VA program is more flexible and not limited to only these types of properties.

For you to be eligible for VA financing, the property must be occupied by a veteran.

This doesn't mean that the house has to be complete by the time of closing.

VA laws allow you to purchase a piece of land and then construct your home. The type of home you construct can be a new one, a mobile home, a pre-fab or original construction.

The actual process of putting a house on a piece of land is trickier than it may seem.

For new constructions, prefabs, modular and mobile homes, you will be required to go through a lot of red tape. This includes approval from VA officials through VA inspectors.

This process is not only time consuming but also expensive and most financiers tend not to get involved in such a process.

To qualify for a VA loan to purchase land, the land must have either a house already situated on it or you must have plans to have a home constructed there.

However, you cannot use a VA loan to purchase land and wait indefinitely before constructing your house.

Therefore, if the home hasn't been constructed yet, submit all the construction plans for your VA loan to be approved.

You also must construct your home according to the building plans you submit.

This means you cannot use your VA loan to buy a piece of land for commercial purposes.

Mobile or Prefab Homes

If you are planning to install a mobile home, it will require a permanent foundation.

Keep in mind that it must comply with the set minimum habitability requirements as stated by the laws of your state, including plumbing and septic requirements.

DOCUMENTS YOU WILL NEED IF YOU WANT TO CONSTRUCT A PREFAB OR MANUFACTURED HOME

■The specificationsof the foundation of the house and a plan similar to that of conventional homes.

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■You also may be required to have details of the line piers if you plan on constructing a double-wide home.

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■A plot of the foundation indicating the location of the supporting piers. Include all drawings of the anchor of the foundation.

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■Prepare a floor plan of the unit and the exterior elevation.

■It is also advisable to have photographs or drawings of the front and rear parts of the home …

■… unless the property is located on the site that is going to be appraised or if the appraiser can access the unit.

■These documents will be included in the manufacturer's installation manual.

■If the state requires that the underside of the property be enclosed, you will need to have all the details of the perimeter enclosure to indicate that you comply with the legal requirements as stated by the authorities.

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■Because site conditions differ from one location to another, provide any revision information on the manufacturer's installation manual to comply with the local housing requirements.

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■Provide any other construction exhibits for other on-site improvements including decks, garages, enclosed patios and carports in order to get sufficient financing.

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Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com