Can You Buy Land with a VA Loan? Everything Veterans Need to Know

You might be a veteran or still serving, dreaming of building your own home on a piece of land you can truly call yours. Can you buy land with a VA loan? The short answer is yes, but there are a few important rules and steps you need to know.

In this easy-to-understand guide, we’ll walk you through how the VA loan program works for buying land, how you can combine it with construction loans, and what options you have if the VA loan doesn’t cover your land-only purchase. Let’s break it down.

What Is a VA Loan?

A VA loan is a home loan that is backed by the U.S. Department of Veterans Affairs to help veterans and service members purchase a home. It’s designed to help military members, veterans, and eligible surviving spouses buy, build, or refinance a home.

These loans come with big benefits:

• No down payment in most cases
• No private mortgage insurance (PMI)
• Competitive interest rates
• Lower closing costs
• Flexible credit requirements

This makes buying or building a home easier and more affordable for military veterans.

Can You Use a VA Loan to Buy Land?

Yes, but there’s a catch. The VA won’t let you use a VA loan to buy land by itself unless you plan to build a primary residence on that land right away. That means no buying land for future use or investment without a plan to start construction.

So, the VA loan is not a regular land loan. It’s meant for people who want to buy land and build their dream home on it now—not later.

How a VA Land Purchase Works

To use a VA loan to buy land, you’ll usually need to combine it with a VA construction loan or a construction-to-permanent loan. These loans let you buy the land and pay for the construction of your home at the same time.

Here’s how the process works:

1. Get your Certificate of Eligibility (COE)
2. Find a VA-approved lender who offers construction loans
3. Submit your structure plans
4. Choose a VA-approved builder
5. Close on your land purchase and construction loan

If everything fits the VA’s lowest property requirements, you’re good to go.

What Kind of Land Can You Buy with a VA Loan?

The land must be:

• For your primary residence
• Ready for home construction (includes farm residence, rural land, or real estate in approved areas)
• In line with VA rules (no business-only or vacation property)

You may also hear terms like VA rural land loan, VA lot loan, or VA farm loan—these are all just specific types of VA-backed loans that apply when you’re planning to build your own home or live on the farmland.

VA Land and Construction Loan Requirements

To qualify for a VA land and construction loan, you need:

• VA entitlement (you earn this through service)
• A valid COE
• Proof of income and credit score
• Detailed construction plans and budget
• A builder who meets VA-approved lender requirements

You’ll also need to budget for closing costs, construction costs, and possibly a funding fee (though this is often waived for disabled veterans).

Unlike some conventional loans, VA loans often offer better interest rates and fewer upfront costs.

What If You Want to Buy Land Now and Build Later?

Unfortunately, the VA does not support land-only purchases unless it includes a plan for immediate construction. If you want to buy land now and wait to build later, you might consider:

• A conventional loan or land loan from a bank
• USDA loans for rural property if you qualify
• Paying cash if possible

Later, you can refinance with a VA construction loan when you’re ready to build.

What Are Your Other Options?

If a VA loan doesn’t fit your needs, don’t worry—there are other choices:

• Conventional loans: Higher credit requirements but allow land-only purchases
• USDA loans: Great for rural areas
• FHA loans: Another government-backed option, though PMI may apply
• Personal loans: For smaller land purchases

Many military members use tools like Military Wallet or work with real estate agents and loan officers who understand veteran needs.

Pros and Cons of Buying Land with a VA Loan

Pros:

• No down payment required
• Lower interest rates
• No private mortgage insurance (PMI)
• Backed by the VA to support veterans.
• Helps veterans build a new home

Cons:

• Must build a primary residence right away
• Not all lenders offer VA construction loans
• Strict minimum property requirements
• May have additional paperwork and approval steps

Who Offers VA Land and Construction Loans?

Not every lender does. Some well-known VA-approved lenders include:

• District Lending
• Creeks Media (as an info source)
• Mortgage Research Center
• Lenders listed by the Nationwide Mortgage Licensing System

Make sure your lender knows the VA process well. Ask about their experience with construction loans, land loans, and building a new home.

Frequently Asked Questions

Can I buy land with a VA loan and build later?

No. You must begin construction right after buying the land.

Can I use the VA loan for a farm residence?

Yes, if it’s your preliminary residence and not used for business only.

What if the land already has a house?

Then, it’s considered a home purchase, and the VA loan can likely be used.

Can I use a VA loan for a mobile or manufactured home on land?

Yes, as long as it meets VA standards and is a permanent residence.

Final Thoughts: Is a VA Land Loan Right for You?

Buying land with a VA loan is possible—but only if you’re ready to build a house right away. It’s a great option for military veterans who want to build a home from the ground up with the help of federal housing assistance.

Make sure you:

• Understand all requirements
• Work with experienced loan officers
• Use your VA entitlement wisely
• Plan your construction timeline clearly

With the right planning, your dream home can become a reality—one brick at a time.