Do you only offer VA loans?

I am a full service mortgage broker. Although VA is the majority of what I do, I also have other mortgages like FHA, Conventional, USDA and Non QM.

Do you only service the Dayton and Cincinnati markets?

Dayton and Cincinnati are the majority of my business. However, I'm authorized to offer mortgage loans in 40 states. For loans outside of these areas, I can refer them to friends in the business.

Can you Buy A Home With Acreage On A VA Loan?

When it comes to purchasing a property with acreage through a VA home loan, many potential homeowners have questions and concerns. Understanding the rules and regulations surrounding this type of financing can make all the difference. Here are three key takeaways to keep in mind as you explore your options:

Key Takeaways

VA Guidelines vs. Lender Overlays: The VA itself does not impose restrictions on the amount of acreage you can purchase. However, individual lenders may have their own rules or “overlays” that limit the number of acres eligible for financing.
Importance of Appraisal: Appraisals can pose a challenge when the land value dramatically exceeds the property’s value. It’s crucial to find a lender willing to work with homes that have high land-to-house value ratios.
Utilizing Farming Income: If you plan to farm on your property, you can potentially use farming income for qualification. However, this is only applicable if you have prior farming experience.

Take the 30 second mortgage quiz to see if you qualify

Understanding VA Home Loans and Acreage

While the VA does not have official rules regarding the amount of acreage, lenders often impose their own restrictions. Therefore, it’s vital to choose a lender willing to accommodate your needs, especially if you’re looking for more expansive properties. A mortgage broker can be a valuable resource in locating such lenders.

For instance, in a recent transaction, a property in Georgia garnered $116,000 in seller concessions—where the seller agreed to cover part of the buyer’s closing costs. Such significant concessions are rare in the competitive spring and summer months but can often be found during winter periods when the market typically slows.

Appraisal Challenges

One potential roadblock you may face is related to the appraisal process. Issues can arise if the value of the land exceeds that of the house significantly. For example, if you’re eyeing a property with several acres of land valued much higher than a relatively modest home, it could complicate your financing options.

Consider the story of the Georgia property mentioned earlier. After being on the market for 45 days, the seller was anxious to sell before Christmas—motivated by the desire to avoid additional stress and financial burdens.

Take the 30 second mortgage quiz to see if you qualify

Qualifying with Farming Income

An additional benefit of the VA home loan is that if you plan to farm the land, potential farming income may be considered in your loan qualification. That said, this provision is reserved for those with established farming experience. So if you’ve never farmed before, you may encounter difficulties accessing this advantage.

A key strategy is to remember that you can always refinance down the line when rates decrease. If you can comfortably afford your current mortgage payment, investing in a property now—even in a higher interest rate environment—can still be advantageous. The wisdom of “date the rate, marry the house” comes into play: focus on securing the home you want now, and consider refinancing when it makes sense financially in the future.

Have questions about VA home loans? Click here to contact me.

Licensing Info

I can originate VA mortgage loans anywhere that I’m licensed. I’m licensed in Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. Additionally, our team can originate mortgages in several additional states through our corporate referral program.

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Carlos Scarpero

Carlos Scarpero is the founder of Scarpero.com and a mortgage loan officer focusing on VA and Non QM mortgage loans. He is also the author of VA Loans Made Easy.