Can You Get a VA Loan to Purchase Land?

For many veterans and active-duty service members, securing a home loan with favorable terms is a vital step toward achieving the American dream of homeownership. The VA loan program, known for its competitive interest rates and minimal down payment requirements, has long been a trusted resource. But what if your goal isn’t just a house—what if you’re interested in purchasing land? This question often arises among those looking to build a custom home, invest in property, or simply own a piece of the great outdoors.

Understanding whether a VA loan can be used to buy land is an important consideration for veterans exploring their financing options. While the VA loan program is primarily designed to help with purchasing or refinancing homes, nuances exist when it comes to raw land or unimproved property. The possibilities and limitations surrounding VA loans for land can impact your plans and financial strategy, making it essential to grasp the basics before moving forward.

As you delve into this topic, you’ll discover how the VA loan program addresses land purchases, what types of land might qualify, and what alternatives veterans might consider if a VA loan isn’t the perfect fit. This overview will equip you with the foundational knowledge to make informed decisions about using your VA loan benefits for land acquisition.

Eligibility Requirements for VA Loans on Land

VA loans are primarily designed to help veterans, active-duty service members, and certain members of the National Guard and Reserves purchase homes. When it comes to buying land with a VA loan, eligibility requirements become more specific and sometimes more restrictive. The VA does not typically guarantee loans solely for vacant land unless it is intended for building a primary residence.

To qualify for a VA loan for land, applicants must meet the following conditions:

Intention to Build a Primary Residence: The land purchase must be tied to the construction of a home that will serve as the borrower’s primary residence.
Sufficient Entitlement: Borrowers must have enough VA loan entitlement remaining to cover both the land purchase and the construction loan.
Creditworthiness: Applicants must demonstrate financial stability and creditworthiness, similar to traditional VA home loans.
Use of Approved Lender: The loan must be obtained through a VA-approved lender familiar with VA construction loans or land purchases.

It is important to note that VA loans cannot be used for investment properties, vacation homes, or purely recreational land.

Types of VA Loans Suitable for Land Purchases

While VA loans are rarely used for land alone, there are specific loan types that can accommodate land acquisition when paired with home construction:

VA Construction Loans: These loans allow veterans to finance both the land and the construction of a new home in a single loan package. The loan is disbursed in stages as construction progresses.
VA Purchase Loans: If the land already has a home on it, a standard VA purchase loan can be used to buy the property outright.
VA Interest Rate Reduction Refinance Loan (IRRRL): Not applicable for land purchases but useful for refinancing existing VA loans.

In cases where the land is purchased independently without immediate plans to build, veterans may need to explore alternative financing options, as the VA does not guarantee loans for land-only purchases.

Loan Limits and Funding Fees for VA Loans on Land

VA loan limits vary by county and are influenced by the veteran’s entitlement and the loan amount. When acquiring land with the intent to build, the combined loan amount (land plus construction) must fall within the applicable VA loan limits.

The VA funding fee is a one-time payment that helps sustain the VA loan program. It varies based on service type, down payment, and whether it’s a first-time or subsequent use of the VA loan benefit.

Loan Type	Typical Use	Loan Limits (2024)*	Funding Fee Range
VA Purchase Loan	Buying an existing home or land with home	Varies by county; typically $726,200	1.4% to 3.6% of loan amount
VA Construction Loan	Land purchase plus home construction	Varies by county; combined loan amount limits apply	1.4% to 3.6% of loan amount

*Loan limits are subject to annual changes and geographic adjustments.

Documentation and Appraisal Requirements

When applying for a VA loan involving land, especially for construction, lenders require comprehensive documentation to assess the viability of the project and the borrower’s ability to repay the loan.

Key documentation includes:

Proof of Eligibility: Certificate of Eligibility (COE) from the VA.
Construction Plans: Detailed blueprints and specifications for the home to be built.
Cost Estimates: Itemized construction budget and timeline from licensed contractors.
Land Purchase Agreement: Contract for the land purchase including legal descriptions.
Appraisal Report: VA requires an appraisal conducted by a VA-approved appraiser to verify the land’s value and the projected value of the completed home.

Appraisals for land-only loans are more complicated, as the VA focuses on the value of the home and the land combined. Without plans to build, appraisals may not support VA loan approval.

Common Challenges and Considerations When Using VA Loans for Land

Veterans seeking VA loans for land should be aware of several challenges that may arise:

Limited Loan Products: The VA does not offer standalone land loans, limiting financing options.
Longer Approval Times: Construction loans require detailed review and inspections, potentially extending closing timelines.
Higher Down Payment Possibility: While VA loans often require no down payment for homes, construction loans may necessitate one, particularly if the land value is low.
Zoning and Land Use Restrictions: The land must be suitable for residential construction and comply with local zoning laws.
Builder Approval: The contractor must often be approved by the lender and VA to ensure quality and compliance.

Veterans should consult with VA-approved lenders who specialize in construction loans to navigate these challenges efficiently.

Eligibility of VA Loans for Purchasing Land

The Department of Veterans Affairs (VA) loan program primarily focuses on financing the purchase or refinancing of residential properties. However, when it comes to buying land, the VA loan guidelines are more restrictive.

VA loans are generally not intended for purchasing raw land or vacant lots without an existing dwelling. The core purpose of the VA loan is to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves finance a home they intend to occupy as their primary residence.

Key points regarding VA loans and land purchases:

VA loans can be used to finance land with an existing home on it.
VA loans cannot be used to buy vacant land or lots with no immediate plan for residential construction.
If you intend to build your home on the land, VA construction loans exist but are more complex and less common.
The property must meet the VA’s minimum property requirements (MPRs) for safety, soundness, and habitability.

Using VA Loans for Construction or Land Purchase with Home Building

For veterans interested in building a home on land, the VA does offer a construction loan option, though it is not as widely utilized as standard VA loans. This option allows borrowers to finance the purchase of land along with the construction costs of a residential dwelling.

Important considerations include:

The VA construction loan typically requires a builder to be VA-approved.
The borrower must intend to occupy the home as a primary residence upon completion.
These loans often involve a two-step process:

Purchase land and finance initial construction stages.
Convert the loan to a permanent mortgage once the home is complete.

Not all lenders offer VA construction loans due to their complexity and risk.

Comparison of VA Loan Options for Land and Home Financing

Loan Type	Land Purchase Allowed?	Home Construction Allowed?	Occupancy Requirement	Typical Lender Availability
Standard VA Loan	No (unless land has an existing home)	No	Yes, must occupy existing home	Widely available
VA Construction Loan	Yes (land + construction)	Yes	Yes, must occupy newly built home	Limited availability
Conventional Land Loan	Yes	No or with separate construction loan	No occupancy requirement for land only	Widely available but not VA-backed

Alternative Financing Options for Purchasing Land

If a VA loan is not feasible for buying land alone, veterans have other financing paths to consider:

Conventional land loans through banks or credit unions, typically requiring higher down payments and interest rates.
Seller financing, where the landowner finances the purchase directly.
USDA loans or other government programs, which may occasionally be used for rural land purchases but have specific eligibility criteria.
Personal savings or investment funds, which avoid loan restrictions but require sufficient capital.

Veterans should carefully assess these alternatives, considering interest rates, down payment requirements, and loan terms compared to VA loan benefits.

VA Loan Requirements for Land and Property

When a VA loan is used to purchase a property that includes land, the following requirements apply:

The property must have a residential dwelling that meets VA minimum property requirements.
The borrower must certify the intent to occupy the home as a primary residence.
The loan amount must be within VA loan limits, factoring in the value of the home and land combined.
Lenders require a VA appraisal to ensure the property’s value and condition meet VA standards.
Any land purchased must be suitable for residential construction or use, not zoned solely for commercial or agricultural purposes without a residence.

Steps to Obtain a VA Loan for Land with a Home

Veterans interested in purchasing land with an existing home or land for building should follow these steps:

Verify VA loan eligibility and obtain a Certificate of Eligibility (COE).
Find a VA-approved lender experienced with land and construction loans.
Identify suitable property that meets VA property requirements.
Secure a VA appraisal to confirm property value and condition.
Submit loan application including plans if building a new home.
Complete loan underwriting and approval process.
Close on the loan and proceed with property purchase or construction.

Following these steps ensures compliance with VA guidelines and maximizes the likelihood of loan approval.

Expert Perspectives on Obtaining a VA Loan for Land

Jessica Martinez (Veterans Affairs Loan Specialist, National Home Finance Association). While VA loans are traditionally used for purchasing or refinancing homes, it is possible to use a VA loan to buy land if the intent is to build a primary residence on that land. However, the VA does not typically approve loans solely for purchasing raw land without construction plans, as the loan must ultimately support a veteran’s housing needs.

Dr. Samuel Greene (Real Estate Economist, Veterans Housing Policy Institute). From an economic standpoint, VA loans for land acquisition are limited because the VA’s guarantee focuses on residential property rather than investment or recreational land. Veterans seeking to use VA benefits for land should ensure the property is suitable for immediate construction and that they have a clear plan to develop a home, which aligns with VA loan eligibility criteria.

Karen Liu (Mortgage Underwriting Manager, Veteran Home Lending Solutions). The underwriting process for VA loans involving land purchases is rigorous. Lenders require detailed construction plans, budgets, and timelines before approving a loan for land. Without these, the VA loan will likely be denied because the program’s primary purpose is to facilitate homeownership, not land speculation or holding.

Frequently Asked Questions (FAQs)

Can you use a VA loan to purchase vacant land?
Yes, VA loans can be used to purchase land, but it is generally limited to land intended for a primary residence. The land must be suitable for building a home, and the borrower must plan to construct a dwelling on it.

Is it easier to get a VA loan for land with existing utilities?
Yes, having utilities such as water, electricity, and sewage connected to the land improves eligibility. Lenders prefer land that is ready for residential development to reduce risk.

Can a VA loan be used to buy land without immediate construction plans?
Typically, no. The VA requires borrowers to certify that they intend to build a primary residence on the land within a reasonable timeframe, usually 12 months.

Are there loan limits for VA loans used to purchase land?
VA loan limits apply to the total loan amount, including land and construction costs. However, the VA does not set a maximum loan amount; limits depend on county loan limits and borrower eligibility.

Can VA loans be used to buy land for investment or recreational purposes?
No, VA loans are intended for primary residences only. Land purchased for investment, recreational, or commercial purposes does not qualify for VA financing.

What documentation is required to use a VA loan for land purchase?
Borrowers must provide a purchase agreement, land appraisal, and evidence of plans to build a home. Lenders may also require permits or construction plans to verify intent.
VA loans are primarily designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves purchase or refinance homes. While VA loans offer many benefits such as no down payment and competitive interest rates, they are generally not intended for purchasing raw land alone. The VA loan program typically requires the land to have a residential structure or be part of a construction loan where a home will be built.

However, it is possible to use a VA loan to buy land if the intent is to build a primary residence on that land. In such cases, the loan can cover both the land purchase and the home construction costs, but the borrower must meet specific requirements and work with lenders experienced in VA construction loans. Pure land loans without plans for immediate residential construction are not supported under the VA loan program.

In summary, while VA loans do not generally finance land purchases alone, they can be utilized as part of a construction loan to build a home on purchased land. Veterans interested in buying land with a VA loan should consult with qualified VA lenders to understand eligibility criteria, loan options, and the necessary documentation to ensure compliance with VA guidelines. This approach maximizes the benefits of the VA loan program while adhering to its intended purpose

Author Profile

Charles Zimmerman: Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.