VA Loan Restrictions – Boston MA VA Home Loans

VA Loan Restrictions

Those who have served our country deserve the utmost respect and admiration. They’re also awarded with access to the VA loan program. In my time as a mortgage officer in the Greater Boston area, I’ve helped several veterans and military families secure a new home with the help of a VA loan.

Boston MA VA Loans for VeteransVA loans offer great benefits, including lenient underwriting and the possibility of no down payments. Born out of the GI Bill of 1944, these government-backed mortgages were designed to give returning servicemen the ability to purchase a good home upon their return to civilian life. As valuable as these loans are, they do come with a certain set of restrictions.

No Unimproved Land

The VA won’t cover loans for plots of land that are undeveloped and have no immediate plans for improvement. They will, however, approve land for mobile homes, as well as undeveloped land when the purchase is made in conjunction with a construction loan.

No Investment Properties

VA loans are explicitly for the purchase of primary residences. You won’t secure a VA-backed mortgage for a property that you’re looking to fix-and-flip. There are, however, certain cases in which you can obtain a second VA loan while keeping your first—read more here.

No Business/Residential Properties

In keeping with the original intent of the VA loan, you can’t use it to purchase a property that’s primarily a place of business. At a minimum, the VA has to determine that 75% of the property is being used as a primary residence and, at most, 25% for business.

VA loans are a great asset to our veterans and their families. If you have any questions or inquiries, don’t hesitate to contact me.

Phil Ganz (354 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317


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