No down payment, should I use my VA loan?

[Phillip Luna]

Would it be a smart or silly decision to use a VA loan starting out to purchase a first home for a rental property? The only reason I ask is I do not have a lot of money to put as a down payment. Thank you in advance.

[Debbie J. Skora]

@Brenden Mitchum is correct about the owner-occupancy requirement, but if you are planning to househack at first, a couple of points to consider:

1) A 0% down VA loan makes it difficult to cash flow, if that's what you're looking for, even with a great interest rate

2) The VA funding fee is waived if you are a DISABLED veteran (ask your title co)

3) you can put closing costs on the end of the loan in many cases

4) Using your VA entitlement for a property you intend to convert to an investment means it won't be available to use in the future if you want to use it to buy a primary residence, until you sell or refinance out of the VA loan.

Welcome to BP, you'll love it!