Can You Buy Land With a VA Loan?

Written by  Tara Mastroeni

Written by  Rene Bermudez

Edited by  Crissinda Ponder

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Updated Oct 28, 2025 Content was accurate at the time of publication.

You can use a VA loan to buy land, but there are some strict rules governing how it’s done. Here’s what you need to know before using a loan backed by the U.S. Department of Veterans Affairs (VA) to buy acreage.

Can you use a VA loan to buy land?

It’s possible for eligible service members to buy land with a VA loan. However, you must build your primary residence on it at the same time. 

Unfortunately, this means you can’t use a VA loan to do any of the following: 

How to use a VA loan to buy land

If you want to get a VA loan and use it to purchase land, there are three ways to make it work:

How VA construction loans work

A VA construction loan lets you roll the costs of purchasing land and building your own home into one mortgage, with no down payment and fewer qualifying guidelines than conventional construction loans.

There are two types of VA construction loans that you can choose from:

One-time close construction loans

This type of loan allows you to close on both your construction financing and permanent financing at the same time. The loan terms are established prior to construction and, if necessary, modified to the permanent terms once construction is completed.

How it works

With a one-time close construction loan, the loan term starts when construction begins — not when it’s complete. That’s a little out of step with your payments, though, which won’t begin until construction is complete. In practice, this means you could end up with slightly larger monthly payments to account for the months during construction when you weren’t paying on the loan.

For instance, say construction takes a year to complete — going forward, you’ll have the payments associated with a 29-year loan, rather than a 30-year loan.

Two-time close construction loans

With this type of VA construction loan, you’ll close on an initial loan when construction begins and then you’ll close on a new loan that will replace the first loan when construction is complete.

How it works

Need to estimate monthly payments? Try our VA loan calculator.

Requirements for VA construction loans

Besides meeting individual eligibility requirements for a VA loan, you’ll need to make sure the land you’re eyeing, as well as your construction plan, meet VA criteria. The requirements, which are related to accessibility, safety and habitability, are called minimum property requirements (MPRs). Some of the most important rules include: 

Number of units: Up to four family units, unless you’re buying with another veteran. In that case, you can purchase or build up to six family units.

Occupancy: You must live in the property as your primary residence. 

 Street access: Properties must have pedestrian and vehicle access from a public or private street.

 Easements: You must have access to your future home without passing through adjoining properties, and if any easements are necessary, they’ll need to be legally transferable to a new owner.

 Drainage, soil and other hazards: The property needs to be graded to allow drainage from the home and prevent pond formation. Your appraisal will also need to take note of dangerous topographic conditions, like those that might lead to avalanches, mudslides, sinkholes, unstable soil or falling rocks.

 Flood insurance: If the land is located in a FEMA Special Flood Hazard Area (SFHA), you’ll need to buy flood insurance to obtain a loan approval.

 Water and sewer: Your property must provide a continuous supply of safe and drinkable water, as well as a safe way to dispose of sewage (like a septic tank).

 Environmental problems: Your appraiser will need to report potential environmental problems, such as slush pits, underground storage tanks or chemical contamination.

 Proximity to airports: Land near airports must be evaluated for potential noise and safety concerns.

Pros and cons of buying land with a VA loan

Alternatives to using a VA loan to buy land

Land loan options

Land loans

Land loans are designed to help you purchase land without a structure on it. The land itself can range from totally unimproved and off-grid to fully ready for residential construction. However, land loans are harder to qualify for than traditional mortgages, and they may require higher credit scores and a 15% to 35% down payment. 

Read more about VA loan down payment requirements.

Personal loans

Personal loans typically come with higher interest rates and smaller loan limits than land loans. If you can afford the monthly payments, however, using a personal loan to buy land can offer some advantages, including fewer costs and upfront fees. You also tend to get funding faster with a personal loan, which could speed up your project timeline. 

View current personal loan rates and top lenders. 

Equity loans

Home equity loans and home equity lines of credit (HELOCs) allow you to access a large sum of cash using your home equity as collateral. However, because you could lose your home if you default on the payments, it can be risky to borrow this way. Home equity loan interest rates are typically higher than HELOC rates, but both are usually lower than personal loan or credit card rates. 

See current home equity loan rates and top lenders today.

Construction loan options

Conventional construction loans

Conventional construction loans work much like VA construction loans, but with a little bit less red tape: You won’t have to meet VA minimum property requirements or use a VA-approved builder or appraiser. You can use a conventional construction loan to cover just the cost of construction or both the construction and land. You can also use it to cover renovation costs for an existing home. 

See current 30-year mortgage rates.

FHA construction loans

FHA construction loans put building a home in reach for borrowers with lower credit scores and less cash on hand. You can qualify with a minimum credit score of 500 and a down payment of 10%. Just like with conventional loans, you can use an FHA construction loan to finance construction or renovations alone, or also roll in the cost of land you want to build on. 

Browse current FHA mortgage rates today.