From single-family homes to barndominiums, tiny homes, and condos, today’s real estate market offers diverse options for homebuyers. But not all property types qualify for VA loan financing. Understanding which homes meet VA requirements is essential for veterans and active-duty service members looking to maximize their home loan benefits.

This guide breaks down the most common property types eligible for VA loans, helping you navigate your homebuying journey with confidence.

Multi-Unit Properties Multi-unit homes, including duplexes, triplexes, and four-plexes, are eligible for VA loans. However, these properties cannot be used exclusively as rental or investment properties. To qualify, the borrower must occupy one of the units as their primary residence.

Short-Term Rentals (Airbnb & VRBO) VA-financed homes can be converted into short-term rentals like Airbnb or VRBO, but only under specific conditions. You must have previously occupied the home as your primary residence for a minimum of 12 months or received a new assignment before the year mark in a location that’s too far from your primary residence to commute. Buying a home solely for short-term rental purposes is not permitted under VA loan guidelines.

Condominiums & Townhouses Condos and townhouses can be purchased with a VA loan, but the entire complex must be VA-approved. If the complex isn’t already on the VA-approved list, your lender can submit an approval request, though this process can be time-consuming. Factors such as homeowner association (HOA) policies, parking availability, and legal documents will be reviewed by the VA.

Manufactured Homes Manufactured homes, also known as mobile homes, are eligible for VA financing but come with specific requirements:

• Must be permanently affixed to a foundation.
• Single-wide homes must be at least 400 sq. ft.
• Double-wide homes must be at least 700 sq. ft.
• Must have permanent facilities for cooking, eating, sleeping, and sanitation.

Not all lenders finance manufactured homes, so it’s essential to work with one experienced in VA loans.

Modular Homes Modular homes, prefabricated in factories and assembled on-site, are eligible for VA loans. These homes must adhere to HUD guidelines or state-specific building standards and be attached to a permanent foundation.

New Construction Homes Securing a VA construction loan can be challenging due to strict requirements, including VA-approved builders, plans, and building sites along with multiple inspections, and warranty guarantees. Many lenders avoid construction loans, but buyers can consider these alternatives:

1. Use a conventional construction loan and refinance with a VA loan upon completion.
2. Work with a builder who can complete construction based on your VA preapproval, then finalize the purchase with a standard VA loan.

Barndominiums VA loans can be used to purchase or build barndominiums, provided they meet the VA’s minimum property requirements (MPRs). Purchasing an existing barndominium is often easier than building a barndominium due to associated risks.

Tiny Homes While tiny homes can qualify for VA financing, they must meet the VA’s MPRs, including requirements for foundation and livable space. Ensuring compliance with these standards is crucial before moving forward. 

Vacant Land Vacant land alone is not eligible for VA loan financing. However, if the land is part of an immediate plan to construct a primary residence, VA loans may apply.

Co-Ops Currently, co-ops (shared-ownership) are not eligible for VA financing. The VA’s authorization for co-op financing expired in 2011 and has not been reinstated.

Final Thoughts Understanding which properties qualify for VA financing is a crucial step in your homebuying journey. Whether you’re considering a traditional home, modular property, or multi-unit investment, the VA loan remains one of the most powerful tools for veterans and military families.

📲 Need Help Navigating VA Loan Property Requirements? Contact Our VA Loan Experts Today!