Why can't Vets use the VA Home Loan to create a Veteran Community Support Sanctuary Farm?

2017-08-02T04:42:08-04:00

Why can't Service-Connected Vets partner, who can't purchase indivudually in the area, who can't move due medical issues, other wised housed in VA supportive housing, dream to use their VA Homeloan Benefit combined, start a Veteran Supporting Transistion Sanctuary Farm. It would be the best of all worlds injured vets helping out other vets.

Response by CAPT Kevin B. made Aug 2 at 2017 6:59 AM

2017-08-02T06:59:11-04:00

Because the Statute doesn't say you can, hence the answer is "No". That said, the VA doesn't issue loans. They merely guarantee the delta between 80-100% purchase price repayment. That's so the lenders would be willing to fork over a loan at a somewhat decent interest rate. Also, the usage wouldn't be single family dwelling for the loan holder, hence it's a commercial property, hence the interest rate is higher. There are so many aspects the current VA guidance and process doesn't cover, it's no wonder why this is a nonstarter in the current benefit configuration. BTW the concept means the property is being used as a Not For Profit which is another reason the lender would be unwilling as there isn't a demonstrated income stream. So many aspects where the lenders won't want to bite.

Response by MSG Private RallyPoint Member made Aug 2 at 2017 9:35 AM

2017-08-02T09:35:49-04:00

Because it isn't the VA giving the loan.

Response by 1SG Private RallyPoint Member made Aug 2 at 2017 11:06 AM

2017-08-02T11:06:35-04:00

The law is pretty clear on what a VA loan can be used for. It must be a homestead.
Having said that, if you could live there, it seems to me that this is something you might be able to pull off with the right business model.
In my opinion, one of the hardest things a veteran faces when they are having physical or mental health issues is not having a sense of purpose. Conceptually, I think I see where you are going with this.
So I say why not go for it? If you pitch this idea in the right circles, I'll bet you can get some support and assistance with bringing this to fruition.

Response by SGT James Murphy made Aug 2 at 2017 6:09 PM

2017-08-02T18:09:01-04:00

You need to contact the SBA.
Small Business Administration and tell THEM your a Vet that Want's to Start a Business.