Alright, I'm still doing some research about VA loans and also did some research about buying duplex. This is my plan in buying my first rental property. I'm looking for a duplex houses near me in zillow.com and looking at mortgages rate in VA loan mortgage calculator. If i buy a duplex worth of $80 000, I will pay 500 something dollars a month for mortgages using VA loan. Since no down payment needed, it's gonna be easy for me to pay the mortgage and buy the property right now. I get paid around 1000$ minus the expenses so just in case this doesn't work out for me, i still have 500 every month. (sorry for my english. its not my first language). But after doing some research in VA loan, it said that "The VA Loan is designed only for primary residences that are occupied by the owners of the properties" so it can't be used as a second home or rental property. ( http://www.veteransunited.com/resources/va-loan-faqs/ ). I need more help in understanding VA loans and making a road map in buying my first rental property. thank you so much
If you use your VA benefit you would be able to purchase up to a 4 plex, tri plex, duplex, or single family. You do however have to reside in one of the units as an owner occupant. After which, if you want down the road in your investing, keep that as a rental and maybe purchase the second property using conventional financing and you would be able to use 75% of the rental income from your property as if you made that much. That is what I would do if I were doing it all over again.
yes. How can i make it as a rental if the VA loan will not allow it? Sorry im still confuse on how to do it legally.
You'll have to live in one of the units for a year. Then you can move out and rent it to someone else legally. But from what I hear there is no written rule it has to be a year as long as it was somewhere you lived for a while. The problem is you'll have a hard time convincing the next underwriter within that first year that they should write you another loan if you're trying to buy more property.
Just be careful, you don't want it to fall apart and mess it up for the rest of us using va.
It's a great deal just make sure you check your numbers real good and have some money to make repairs etc. it's not always a turn-key situation and even then you'll need money on hand.
If you need any more help let me know, just bought a triplex with my va.
There's only one scenario where you can VA finance a rental property. If you already own the property and have a VA loan on it, and it's rented out, you can do a VA streamline refinance for a lower rate. You wouldn't be able to use this now, but it could be worth noting for the future.
There are a fair number of options with VA loans. Apparently you can have a couple at a time.
This is one of the best loans available, best in my opinion, in the US. It is worth figuring out all the details of this one. It is also the ultimate in "House Hacking" loan. But given it's parameters the VA loan, you should be able to do much better than simply "free rent" on 3 and 4 family properties.
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