source:
  type: guide
  id: va-m26-7-ch09-t04
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 4 — Land Sale
    Contracts and Option Contracts
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 4 — Land Sale
    Contracts and Option Contracts.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch09-t04-full
  canonical_id: va-m26-7-ch09-t04-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 4 — Land Sale
    Contracts and Option Contracts
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 4 — Land Sale
      Contracts and Option Contracts
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 23782f6842a5daf5
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:b7c7fcb001b1097e51e4479c70f74c0d981cc1a7a38109e8cd455e205071d9e8
    paragraph_quote: '4. Land Sale Contracts and Option Contracts Change Date July
      30, 2019 • This chapter has been revised in its entirety. a. Eligibility of
      Land Sale Contracts VA may guarantee an obligation secured by a land sale contract
      for the purchase of improved residential property in the same manner as any
      obligation secured by a mortgage or deed of trust. • The land sale contract
      must contain the mandatory clauses provided in Topic 1 of this chapter. • The
      contract must be recorded. b. Refinance Land Sale Contracts Pursuant to Title
      38 of the U.S.C., subchapter 3710(b)(7)(B), VA may also guarantee a loan to
      refinance the unpaid balance under a land sale contract for the purchase of
      improved residential property, provided: • the Veteran will obtain title to
      the property described in the contract upon closing of the loan, and • the obligation
      to be guaranteed is in the form of a mortgage note or bond secured by a mortgage
      or other acceptable form of security instrument other than the existing land
      sale contract. c. Eligibility of Option Contracts Option contracts are not eligible
      for guaranty; however, VA may guarantee a loan made for the unpaid purchase
      price of residential property when the option is exercised. VA Pamphlet 26-7,
      Revised Chapter 9: Legal Instruments, Liens, Escrows, and Related Issues 9-9'
  judgment: false
