How To Use A Veteran Home Loan For A Leasehold Property

If you’re an active duty or veteran service member looking for an affordable path to homeownership, you may have considered purchasing a leasehold property.

Leasehold properties tend to be less expensive than traditional properties and usually require less upkeep. But is it possible to use a veteran home loan for a leasehold property? Here’s what you need to know.

How To Use A Veteran Home Loan For A Leasehold Property
How To Use A Veteran Home Loan For A Leasehold Property

What Are Leasehold Properties?

You do not own the land on which a leasehold property is situated, but you do have the right to use and occupy the property. Rather, the land is rented for many years, sometimes decades, from the landowner. While you own the building or house, the land it’s on is rented under a lease agreement. This lease specifies how long you can use the property and often includes conditions for use and maintenance. At the end of the lease term, the property rights usually revert back to the landowner.

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