Which scenario is NOT eligible for a VA loan?

A VA loan is specifically designed to assist eligible veterans, active-duty service members, and certain members of the National Guard and Reserves in obtaining home financing. The core purpose is to facilitate the purchasing of homes for personal occupancy rather than for investment purposes.

When it comes to VA loans, eligibility is tied to the intention of primary residence. The correct scenario that does not align with the VA loan's purpose is the one involving an investment property. VA loans are intended for owner-occupied homes, meaning the borrower must live in the property as their primary residence.

Other scenarios, such as purchasing an owner-occupied home, refinancing another VA loan, and improving an owner-occupied home, align with the intent of the VA loan program. Each of these options serves the purpose of providing stable housing for veterans and their families, which is the primary goal of the program. Thus, an investment property does not meet the criteria for a VA loan, confirming that choice is indeed the correct answer.