Altamont, NY · Member since 2015 · 2 posts · 0 votes
im getting out of the military with a decent amount of money in the bank account. planning on starting with a duplex investment and renting out the other side . i wanted to learn more about the VA loan process . also i am repairing my credit score from a irresponsible past. is a VA loan my best bet to start investing?
Hi Nathan, so many people don't realize that you can only use your VA loan 1 year prior to either PCSing or separating. This is because the VA loan requires you to live in the property at least 1 year. Also, as a borrower you must show income and future income with a verification letter of future employment. If you don't have that then you won't be able to use the loan. I feel bad because so many vets separate or retire and don't realize this. Many vets think the income from their Post 9/11 GI Bill counts as useable income which it doesn't.
Bottom line, the VA loan is not a option for you unless you can qualify with income from a future employer or you're over 1 year out (or don't have separation orders yet). Keep in mind the VA loan usually takes about 45 days to close so you'll have to move fast before you get your official orders or risk having to use a different loan product in escrow. In some cases a VA loan can do 30 days to close if everything goes right which never happens.
Disclaimer - I'm not a mortgage professional. This is just my opinion based off experience working with many VA loan buyers and lenders.