Can You Use a VA Loan to Buy a Tiny Home?

Are you eyeing the tiny home life? Here’s what to know about using a VA loan to get there.
Advertising Disclosure.

Advertiser Disclosure: The Military Wallet and Three Creeks Media, LLC, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet. For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked; however, this compensation does not affect how, where, and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner,” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings, or lists are fully comprehensive and do not include all companies or available products.

The Military Wallet and Three Creeks Media have partnered with CardRatings for our coverage of credit card products. The Military Wallet and CardRatings may receive a commission from card issuers.

Opinions, reviews, analyses & recommendations are the author’s alone and have not been reviewed, endorsed, or approved by any of these entities. For more information, please see our Advertising Policy.

American Express is an advertiser on The Military Wallet. Terms Apply to American Express benefits and offers.

Homeowner and child on patio in front of a tiny home, setting a table for dinner.

Tiny homes can be a great choice for those looking for a more minimalistic lifestyle. They can also cut down on housing and electricity costs, resulting in significant savings over time.

Best of all, if you’re a military member or veteran, you can even use your VA loan entitlement to buy or build a tiny home. Though, there are some requirements you (and your property) need to meet to do so. 

Are you eyeing the tiny home life? Here’s what to know about using a VA loan to get there.

Summary:

  • You can use a VA loan to buy or build a tiny home, but the property must meet certain requirements. 
  • The home will need to have at least 400 square feet, as well as room for living, sleeping, cooking, and sanitary facilities. 
  • Your lender will order a VA appraisal to ensure the home meets these and all other minimum property requirements. 
  • You also must live in the home for at least a year and meet the VA’s military service requirements.

What Qualifies as a Tiny Home?

A tiny home is a property that’s 400 square feet in area or less, according to the International Residential Code. It could be built on a permanent foundation or on wheels and often includes lofted beds and other space-saving features.

Your Mortgage Interest Rate — Let’s Do The Numbers
GET YOUR ACTUAL RATE
Estimated interest rate*
--

The Military Wallet's methodology:


*Rate data provided by RateUpdate.com. The displayed rates come from multiple providers and represent market averages. Your mortgage rate will differ based on individual factors like your credit score as well as differing loan types and terms offered by lenders.


Click "Get Your Actual Rate" to connect with a licensed mortgage lender for a more accurate quote.

Powered by Mortgage Research Center, LLC | NMLS 1907

Building vs. Buying a Tiny Home With a VA Loan

If you’re a military member, veteran, or the spouse of one, you may be able to use a VA loan to finance your tiny home dreams. If you’ve found an existing tiny home you’d like to purchase, this would require a VA purchase loan, but if you’d like to build your tiny home from the ground up, you need a VA construction loan. These loans aren’t widely offered and can be hard to come by.

Minimum Property Requirements for Tiny Homes

Whether you’re building or purchasing an existing tiny home, the property needs to meet the VA’s minimum property requirements before you’ll be approved for your loan.

Space Requirements

VA rules state that a property must be at least 400 square feet to qualify for VA financing. You’ll need to make sure any tiny home you build or buy meets this minimum requirement. By definition, a tiny home is typically 400 square feet or fewer, which means only the largest tiny homes—those at the upper limit of the definition—will qualify for VA loans. If your tiny home falls below this size, it won’t be eligible for VA financing.

Beyond the square footage, the VA also stipulates that a home must have enough space for living, sleeping, cooking, dining, and sanitary facilities for all its occupants. This may be challenging in a true tiny home.

A Permanent Foundation

Many tiny homeowners like to build their properties on wheels, so they can travel more comfortably. This isn’t an option with VA financing. A property must be built on a permanent foundation in order to qualify. 

Land

Many tiny home owners lease the land their home sits on, but this isn’t possible with VA financing. To use a VA loan, you must own the land on which your tiny home sits. 

Other Requirements

The VA’s other minimum property requirements include:

  • Working electric, heating, and cooling systems
  • Adequate  roofing to last the foreseeable future
  • Clean, continuous water supply and sanitary facilities
  • Safe and sanitary sewage disposal
  • No lead-based paint, wood-destroying insects, fungus, or dry rot
  • Access from an all-weather public or private street
  • Properly vented and accessible attics and crawl spaces

You will also need to meet the VA’s military service requirements and occupy the home for at least 12 months. 

See What You Qualify For

Select a VA Home Loan Option to Continue:

Home Purchase
Home Refinance
Cash-Out Refinance
Explore My Options
Get Started

Appraisals Can Be More Challenging for Tiny Homes

The VA requires an appraisal of your property too. These are used to gauge the home’s value and ensure the home meets all the VA’s property requirements listed above. Only VA-approved appraisers can conduct these assessments, and they come with a fee you pay at closing. This fee varies based on your location and the size of your property.

Appraisals involve reviewing comparable home sales in the area to ensure the home is fairly priced. For a traditional home, this is usually straightforward. But, for tiny homes, your appraiser may find it difficult to find comparable home sales due to their rarity. So, this may require additional time and effort, and your appraiser may have to look beyond the immediate area to conduct their appraisal. 

Buying a Tiny Home: Is it Worth it?

As with anything, buying a tiny home has its pros and cons. On the one hand, you cut down on costs, minimize your life, and lessen your impact on the environment. On the downside, though, it may be hard to use your VA loan entitlement for a true tiny home. Also, in such a small space, you may struggle with storage or even coexisting with kids, partners, and pets. 

About Post Author

Get Instant Access
FREE Weekly Updates! Enter your information to join our mailing list.

Reader Interactions

Leave A Comment:

Comments:

About the comments on this site:

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

The Military Wallet is a property of Three Creeks Media. Neither The Military Wallet nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on The Military Wallet is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on The Military Wallet should not be attributed to the Dept. of Veterans Affairs, the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on The Military Wallet is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertiser Disclosure: The Military Wallet and Three Creeks Media, LLC, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet. For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked; however, this compensation does not affect how, where, and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner,” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings, or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on The Military Wallet may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of  The Military Wallet.

Information from your device can be used to personalize your ad experience.