ANY house can be financed by VA, provided it meets the guidelines (basically it needs 4 walls, a few windows and doors, etc). You can even finance a mobile home or condo with VA. The hardest thing you have to do is find a mortgage broker that finances VA loans. VA doesn't actually loan the money ... the guarantee the loan to the mortgage company, which saves you about $100 per month in mortgage insurance and the need for a 20% downpayment.
Also, once you pay off a mortgage loan, you can use it over and over, provided you made your payments on time.
We went through a process similar to Liz the first time. Had to beg for mercy and tell them why I had stupid little (and I do mean little!) collections against me on my credit report. Then they approved us for something like $225k -- yeah right! I asked the mortgage broker how he thought we'd make payments on that.
The catch is that you have to pay a 3% fee to the VA for guaranteeing your loan. You can roll it into the loan itself, so there is absolutely nothing out of pocket. On both occasions that we've done a VA loan, we actually got cash back at closing.
It's really no more complicated than any other home loan and a mortgage broker will walk you through all the steps.