July 12, 2024

Understanding the Basics of VA/CL Property Type

When it comes to real estate, there are various property types that potential buyers and investors need to be aware of. One such property type that you may come across is VA/CL. But what exactly does VA/CL mean? Let’s dive into the details and explore this property type further.

The Definition of VA/CL Property Type

VA/CL stands for Veterans Affairs/Contractor Licensed. This property type is primarily associated with real estate properties that are owned by the Department of Veterans Affairs (VA) and are sold through a contractor with a valid license. These properties are often foreclosed homes that were previously owned by veterans and are now available for purchase in the market.

How VA/CL Properties Are Different

VA/CL properties differ from traditional real estate properties in several ways. Firstly, they are sold through a contractor instead of a real estate agent or broker. This means that the purchasing process may have some variations compared to a typical home purchase.

Secondly, VA/CL properties are often sold “as-is,” meaning that they are sold in their current condition without any repairs or renovations being made by the contractor or seller. Buyers should be prepared to invest additional time and money into the property after purchase to bring it up to their desired standards.

The Benefits of Buying VA/CL Properties

While VA/CL properties may require additional effort and investment, they also come with several benefits that make them an attractive option for buyers:

1. Affordable Pricing

VA/CL properties are often priced lower than market value, making them an affordable option for buyers looking to get a good deal. This can be particularly advantageous for first-time homebuyers or those on a tight budget.

2. Financing Options

Buyers of VA/CL properties may be eligible for special financing options, such as VA loans or renovation loans. These financing options can provide additional flexibility and support for buyers who need financial assistance to purchase and renovate the property.

3. Potential for Profit

Investors who are willing to put in the effort to renovate and improve VA/CL properties may find great profit potential. By purchasing these properties below market value and making necessary repairs, investors can increase the property’s value and potentially sell it for a higher price in the future.

Important Considerations for Buyers

Before diving into the VA/CL property market, there are a few important considerations that buyers should keep in mind:

1. Research the Property

Since VA/CL properties are sold “as-is,” it’s crucial to thoroughly research the property before making a purchase. Conduct a comprehensive inspection and consider hiring a professional home inspector to identify any potential issues that may require costly repairs.

2. Understand the Purchase Process

As mentioned earlier, the purchase process for VA/CL properties may differ from traditional real estate transactions. Familiarize yourself with the specific requirements and procedures involved to ensure a smooth and successful purchase.

3. Budget for Renovations

Factor in the cost of renovations and repairs when creating your budget for a VA/CL property purchase. It’s essential to have a clear understanding of the potential expenses involved to avoid any unexpected financial strain.


VA/CL properties can be a unique and advantageous option for buyers and investors in the real estate market. Understanding the basics of this property type, its benefits, and the considerations involved can help you make an informed decision when purchasing a VA/CL property. With careful research and planning, you can find a VA/CL property that meets your needs and offers great potential for future growth and profitability.