The Department of Veterans Affairs’ (VA) Home Loan benefit may be used to purchase a farm on
which there is a farm residence to be owned and occupied by a Veteran as his or her primary
residence. Although the Kentucky VA Home Loan benefit cannot be used for business loans, including for farming, Veterans can use the benefit to purchase a farm on which there is a residence.
GUIDANCE FOR BUYING A FARM USING KENTUCKY MORTGAGE VA ENTITLEMENT.
Loans for farm dwellings are appraised the same way as for homes in urban areas.
VA does not set limits on the number of acres a VA-guaranteed property may have.
The appraisal of properties with acreage should not present difficulties if a sufficient number of
similar properties in the area were recently sold primarily for residential use, and may include
improvements not typically considered residential (i.e. barns, sheds, corrals, stables, pastures).
For VA purposes, the valuation must not include livestock, crops, or farm equipment and
supplies. In any case, individual improvements not typically considered residential (i.e. barns,
sheds, corrals, stables, pastures) will be valued at their fair market value.
Underwriting guidelines are generally the same as for non-farm type dwellings.
For example, if some or all of the income necessary to support the loan payments comes from
farming operations, a Veteran’s ability and experience as a farm operator must be established
The procedures and analysis provided in Chapter 4 of VA Pamphlet 26-7, Lenders Handbook,
under “Self-Employment Income” generally apply.
STEPS TO A VA HOME LOAN
1. Apply online for a Certificate of Eligibility (COE)
or by mail using VA Form 26-1880,
Request for Certificate of Eligibility. Lenders can also obtain COEs for Veterans online.
Home Loan Guaranty –February 2015
Senior Loan Officer
phone: (502) 905-3708