Can I get a VA loan through an entity

Question

Cheryl Packham · Answer

Hi Daniel, you definitely cannot buy a residence as an LLC with a VA loan.  But unless you have some serious net worth, I do not feel like an LLC would be an appropriate choice for you if this is your first investment property.  I am not a lawyer nor an accountant and I do recommend you run your thoughts by at least one before starting an LLC.  In my experience having purchased three properties with VA loans and renting out two of them, is that with adequate insurance, you should be fine for now.  If you are owner occupying one of the units, which you are required to to get a VA loan, you will have more oversight of your properties and be able to take care of issues hopefully before they turn into lawsuits.  To be honest, you may need to discuss with an attorney how owner occupying the unit would impact the ability for an LLC to protect your personal assets.

Chris Mason · Answer

VA entitlement can only be used by natural persons, veterans and their spouses (or registered domestic partners, etc).

Fun trivia: VA financing is the only type of traditional mortgage financing where your coborrower must legally be something more than a friend/associate in order for the terms/conditions of the loan to be unaltered.

Tommy F. · Answer

Daniel

I'm pretty sure the answer is no VA loan to an entity. The VA benefit is for the individual service member not a company regardless it being an LLC owner by the service member.  Your fourplex will not have any equity for years, so it won't be much of a target for a lawsuit.

Checkout VA Pamphlet 26-7

Good luck.

Tommy