Can you use a VA Loan to buy an additional parcel of land in Florida, Texas, Tennessee, and Alabama?
Can you buy a home and the adjoining piece of land with a VA loan?
In situations where a seller wants to include both their home as well as the lot next door within the same transaction, will a VA loan also allow you to include the vacant land as part of the same sales contract?
As you can imagine, there is a tremendous amount of misinformation on this topic. In today’s short video, I will explain the VA guidelines on multiple parcels and how this flexibility allows for a wider ranges of properties to choose from.
However, before we get started, remember to take advantage of our free Second Opinion Service “SOS”. This valuable resource is designed to help homebuyers and Realtors get access to an expert second opinion and is great for tool for both new qualifications and loans that are already in progress.
800-806-9836 Ext. 280
Will a VA No Down Payment Loan allow you to include multiple parcels in Florida, Texas, Tennessee, and Alabama?
When working in rural areas, it can be common to have situations where there are multiple parcels connected to the subject property being purchased. As a result, a common question that arises is whether multiple parcels of land can be included with a VA No Down Payment Loan.
Current VA land guidelines provide for the following:
“More than one parcel or lot may be included as long as all of the property is contiguous and legally marketable. VA does not set a limit on the number of acres that the property may have. If the property being appraised includes more than one parcel, the appraisal must be prepared subject to placing all of the parcels on one deed.”
Based on this VA guidance and practical experience, here are key checklist items to consider:
- The property must be contiguous, i.e., any additional parcels must be adjoining or connected to the subject property being purchased.
- If the lots have not yet been combined into one parcel ID, it is recommended to separately list each parcel ID on the same sales contract.
- The appraiser will include all parcels in the value and the appraisal must be prepared subject to placing all of the parcels on one deed which would occur at time of closing.
- All parcels will be included within the final survey.
VA Flexibility with Including Multiple Parcels of Land
As you can see that VA program can be extremely flexible and it can be possible to include multiple parcels of land with a VA loan subject to the requirements we discussed today. As VA financing experts, rely on our experience and clear communication to help navigate this type of transaction and provide a well-planned roadmap for closing success.
As a VA Approved Lender, we will walk you through the VA loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!
800-806-9836 Ext. 280
Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!
As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
P.S. – You can download our “Loan Comparison Worksheet” by CLICKING HERE.