My father was in the military and never used a VA loan. Is there any way that I can benefit from this?
Yes, you can get a 0% down payment.
@Rosston Smith I'm aware of that, but it's my father that can get the loan not me (unless someone knows of family members being able to qualify for it?) So I'm just wondering if there's any way I can use it to my advantage. I'm assuming he would need to be the one to take the loan out, and it would only be allowed for owner occupied so he would have to live in the house, right? I'm trying to see how it would benefit me at all.
He can get the loan and you manage the property taking a percentage of cashflow.
@Pat McCandless , you are correct that it is your father who can use the loan. He must intend to occupy a property that he buys with that loan, for at least one year.
What are your goals? Buy and hold? Fix and flip? Wholesale? Multi-family?
@Kerry Baird my goals would be buy and hold. Can you use a VA loan for implementing the BRRRR strategy?
Yes. With a VA loan there is an option that when a house is sold that the VA loan on the house can be transferred directly to the new owner. Military affiliation or not. So my VA loan on my private residency can be transferred so Joe Somebody right off the street when I decide to sell.
So if your father buys a home, you BRRRR and then buy it from him after 1-2 years (depending on capital gain etc) you have used the VA for your home. I also believe that if your father died in combat, you might be able to use the VA loan. Probably check with the VA on that one, you can email them questions and they get back to you at the speed of government.
The problem is a VA loan (at least when I was looking to use it) cannot be used for the Rehab portion of your BRRRR strategy, plus if the home requires rehab it might not qualify for the loan in the first place. VA loans require a second inspection and the standards are kind of higher than conventional, or so I have been told.
That means you need to get kind of creative if you are going to be BRRRR with the loan. There are ways but it takes more leg work since the property would have to change owners 3-4 times in less than a year.
@Pat McCandless you can not use the VA loan. Only veterans like myself who serve our country can use it, there's no free pass or transfer option.
The VA loan does not work on any investment means. The VA inspections is very detail and has to be livable not ands ifs or buts.
Thanks everyone, sounds like I will count out using a VA loan for investment purposes
Pat - Check out this link for details
Short answer honestly is -- NO
The benefit is to the Veteran who would be owner occupied.
Sure there are many things someone "could" do, but they're not necessarily right, and often not so easy as they seem at face value.... Learn the details before getting into a mess.
Just to clarify, he can take out the loan as long as he has an intent to occupy the property within 60 days of closing. With that being said, there is NOT a one year occupancy requirement like other backed loans such as an FHA loan. Likely reason for that is because active duty service members are eligible for VA loans and they can change duty stations and deploy without much notice. So to clarify, it wouldn't be mortgage fraud if he purchased the home with an intent to occupy it, lived in it for a couple months, and then he could decide to move and let you rent it out for him. Pretty simple way to use the benefits he earned and deserves to get a property with zero money down. Also, if he purchases a multifamily home and occupies one of the units for a little while, you're in the clear.
@Christopher Aleman his main question he was trying to ask if he himself a non military member can use his fathers VA loan.
In military terms can a civilian use a veterans va loan and the answer is no.
@Account Closed technically his father can purchase the property with his VA loan for 0% down, and then let his son rent it out for him. He could sign a master lease with his dad and sublet it out. Simple way for both of them to take advantage of his father's entitlement.
There are always ways around it, but it requires effort, and the willingness of your father to move.
The VA loan does not pass down from generation to generation or nearly everyone would be able to use it. Of course there are exceptions if the military member died in combat or from a service related injury, but even then it'd only go to your spouse.
It also specifies that it has to be your main residence, but the amount of time is unclear. And it's not a strategy that could be used multiple times because you (the veteran) can only have 1 loan out at a time.
When I was filling out my VA loan questionnaire it said something about being a dependent. If you're still a dependent you might be able to do it that way. I think the best way to find out is call the VA lender and ask what the actual details are.
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