What Types of Properties Can You Buy with a VA Loan?

Hey guys, thanks for stopping by.

If you're wondering what kinds of homes you can buy using your VA loan, you're in the right place. Whether you're new to the process or already deep in the home search, this guide breaks down the types of properties eligible under the VA loan and clears up some common myths.

As someone who's helped close hundreds of VA loans over the past eight years, one thing I can say with confidence: the VA loan offers more flexibility than most people realize—especially when it comes to the types of properties you can buy.

Let’s get into it.

First Things First: Don’t Blame the VA (Always)

A lot of confusion comes from what's known as lender overlays. These are extra requirements added by specific lenders—not the VA itself. So if you get denied based on the property type, it might not be the VA saying no—it might just be that particular lender. Always double-check before assuming a property is ineligible.

1. Single-Family Homes (SFH)

Most common, most straightforward. One unit, one address, one door. These are what most people think of when buying a home.

Good to know:

• Age doesn’t matter. I've helped clients buy homes built in the 1900s.

• Condition does. The home must be livable. Outdated is fine; falling apart is not. Cabinets, flooring, doors, etc., all need to be functional—even if they’re not pretty.

• A good rule of thumb: If you'd let a 7-year-old run around unsupervised for 10 minutes, you're probably fine.

2. Multifamily Homes (2–4 Units)

Yes, you can use a VA loan to house-hack. I don’t love the term “house-hacking,” because you’re not breaking any rules—this is all explicitly allowed by the VA. Buy a duplex, triplex, or fourplex, live in one unit, and rent the others out.

Benefits:

• You can use 75% of market rent from the other units to help qualify.

• Often easier for buyers with strong assets but lower income.

• Long-term rental income potential.

Requirements:

• You must live in one of the units.

• You need six months of mortgage payments in reserves after closing.

• If you don’t have landlord experience, lenders might factor in property management costs against you.

Extra Note: Technically, one business unit is allowed within a 4-unit property (making it 5 total), though this is rare in practice.

3. Condos

Yes, with one condition: The condo project must be VA-approved. There’s a VA Public database you (or your lender) can check. https://lgy.va.gov/lgyhub/condo-report

Tips:

• Some exceptions exist. In rare cases, the VA may issue a one-time waiver.

• Great option for active-duty members or single buyers. Low maintenance, especially when you’re often away from home.

• Keep an eye on condo association fees, this could bring down your buying power.

• Property taxes and home insurance tends to be lower.

4. Townhomes

Usually treated like single-family homes. No special approval needed unless the townhome is legally a condo (common in places like California). In that case, VA condo approval is required.

5. Manufactured Homes

Yes, they’re allowed—more than you think. These can be a great option, especially newer models.

VA Requirements:

• Built after June 15, 1976.

• Must be permanently affixed to land. Tie downs or foundation

• The home and land must be taxed together.

• Must be at least 400 sq. ft., and single-wide, double-wide, or triple-wide homes are all acceptable.

  
  

Pro Tip: Modern manufactured homes (built post-2000) can look just as good as stick-built homes—and sometimes better.

6. New Construction

This refers to homes in builder developments that aren't finished yet. You’re buying a to-be-completed home—not designing from scratch.

VA loan is fine here, as long as the home meets VA property standards.

7. Custom Construction

Yes, there's a VA Custom Construction Loan, but it’s complex and not for first-timers.

Here’s how it works:

• It covers the cost of land and construction.

• You’ll likely need $30K–$50K out of pocket upfront for things like land testing, utilities, and permits before the builder takes over.

• It’s a long, hands-on process and requires financial prep and patience.

If this sounds like you: Great. Just know it’s a different beast than new construction homes in a neighborhood.

Key Takeaways

• VA loans are more flexible than most people assume.

• Lender overlays can restrict you—shop around if you hear “no.”

• Safe and livable is the core requirement—outdated is okay; dangerous is not.

• Manufactured homes are eligible and often overlooked.

• Multifamily can be a game-changer, especially for building future rental income.

Have questions about a specific property type? Drop them in the comments or send a message. I’ll break it down for you.

Next time, I’ll cover VA Renovation Loans and what to do if you do want a fixer-upper.

Until then—happy house hunting.

Let me know if you’d like a visual for this post (e.g., a breakdown graphic of property types) or want to break it into a multi-part blog series.