Second Home
VA Loans Can Fund Second Home Purchases
By Buyincomeproperty.com
Oct 26, 2005, 18:29

Home ownership may be the American Dream, but buying a second home likely comes in the top ten list of dreams for many. One group of Americans now have an easier path to owning a second home. Loans administered by the Veteran’s Administration have recently become available for those seeking to purchase a second home, providing specific requirements are met.

To understand why second home purchases have become so popular, take a look at one of the most common reasons for purchasing a second home. Vacation or retirement homes are arguably the number one reason for buying a second home. While you may be tied to living in a certain area during your working years, you may have a perfect location for those times when you can get away from it all for a weekend or summer vacation. And you may have that same place in mind as the place you’d most like to spend those lazy days of retirement.

It’s not all about luxury. While some people have the misconception that a second home is just a frivolous expense for the rich and famous, the reality is that more people are looking for ways to fund that second home as part of a retirement plan. And many of those are making those plans earlier than ever before.

So how can you go about finding second home financing? There are lots of options available, but one that is a recent additional to the mix is VA financing. As a general rule, VA loans are not available as second home loans. The rule is that VA financing is only available for a primary residence. That means that the second home may very well qualify for a VA home loan, if you’ll be spending more than half of each year in that home.

Remember that there are some definite advantages to be had through VA loans. If you qualify, you can purchase a house with no money down and get excellent rates and terms.

Despite the fact that it is possible to use the proceeds from a VA loan for purchasing that second home, the goal of the VA financing is not to fund real estate ventures, but to help veterans finance quality housing. You’ll have to prove that this is your primary home. At the same time, veterans have as much right as anyone (or more so) to reach the dream of having a second home ready for retirement. You can meet the VA loan requirements by getting ready to move into that home and make it your primary residence in the immediate future.

VA loans are only one option for second home financing. If you currently own a home, you may cash out equity for a down payment, or you may offer your second home as a vacation rental until you’re ready to live there permanently. There are many options for funding a second home, regardless of the purpose for purchasing that home. But there’s no doubt that buying a second home with a VA loan will open the doors for many deserving military personnel who are looking toward retirement.

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