Property types
What you can buy with a VA loan in Chicago
Short answer
A VA loan can buy a single-family home, a townhome, a condo in a VA-approved building, or a two- to four-unit building, as long as you live there as your primary residence. It can also fund new construction and energy-efficiency improvements. It cannot buy a vacation home or a pure investment property.
Property types at a glance
| Property | VA loan? | Key rule |
|---|---|---|
| Single-family home or townhome | Yes | Must meet VA minimum property requirements |
| Condo | Yes | Building must be a VA-approved project |
| Two- to four-flat | Yes | You live in one unit |
| New construction | Yes | Builder and plans reviewed by lender and VA appraiser |
| Vacation or investment property | No | VA loans are for a primary residence |
Other ways to use the benefit
- New construction: you can buy a newly built home or build one. The builder usually needs a VA builder ID, and the appraiser reviews plans and the finished home.
- Energy-efficient improvements: VA lets you add upgrades such as solar or insulation to a purchase or refinance, within limits set by VA.
- Manufactured homes: allowed, including a home not permanently affixed to land, which carries a 1% funding fee.
- Assumable homes: a home with an existing VA loan may let you take over the seller’s rate. How assumptions work.
The occupancy rule
Every VA purchase must be your primary residence. You generally need to move in within 60 days of closing. A spouse can satisfy occupancy while you are deployed, and a dependent child can in some cases.
Guides
Common questions
Can I buy an investment property with a VA loan?
No. A VA loan must be for a home you will live in. A two- to four-unit building qualifies if you live in one unit.
Sources
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.