There are a lot of properties that are on private roads, dirt roads, or other types of unpaved roads and often lenders have a problem with these road types, especially on VA loans. We receive questions right often on these types of properties because we are in a rural area with lots of roads that are private or unpaved. When looking to buy a home in rural areas or even in small to large subdivisions that have these private roads, there are options for obtaining a VA loan. Per the VA lender’s manual:
Each property must be provided with a safe and adequate pedestrian or vehicular access from a public or private road. Private streets must be:
- protected by a permanent recorded easement, and
- maintained by a homeowner’s association or joint maintenance agreement
All streets must have an all-weather surface which the VA appraiser will determine if the road is safe and adequate as well as maintained.
Other types of mortgages such as FHA, USDA, or conventional loans can be obtained on private roads as well with a permanent easement. If you have a scenario for a private or unpaved road, please contact us for help.