Uses Available for VA Home Loans
Eligible veterans or active military members can use their VA benefits to obtain a VA home loan. The loan can be used for a variety of purposes, not solely for purchasing a house.
Other uses for VA home loans aside from purchasing a home are to purchase a townhouse or condominium. In order to use the VA loan for this purpose, however, the unit must be in a project that is approved by the VA. Also, a manufactured home and/or the lot for the home can be purchased with a VA home loan as well.
Additional uses for a VA loan are to build a home or make improvements to a home while also purchasing it. Energy related improvements to an existing home are also an acceptable use for a VA home loan. Examples of energy related improvements include water heaters, insulation, storm windows/doors, weather-stripping, etc.
Finally, refinancing is another option. A VA loan can be used when refinancing an existing home loan or to refinance an existing VA loan to get a lower interest rate. The existing home loan can be refinanced for up to 90% of the VA-established value of the home.