What is the Purpose of the VA Loan?

• To buy a home, including townhouse or condominiumi unit in a VA-approved project.
• To build a home.
• To simultaneously purchase and improve a home.
• To improve a home by installing energy-related features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvementsi approved by the lender and VA. These features may be added with the purchase of an existing dwelling or by refinancing
  a home owned and occupied by the veteran. A loan can be increased up to $3,000 based on documented costs or up to $6,000 if the increase in the mortgagei payment is offset by the expected reduction in utility costs. A refinancing loan may not exceed 90 percent of the appraised valuei plus the costs of the improvements. Check with a lender or VA for details.
• To refinancei an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interesti ratei.
• To buy a manufactured home and/or lot.