Investing advice using a VA loan. Is it the best route to go?

5 Replies

Hello! This is my first post so any information would be great. My name is Tanner and I recently got out of active duty in November of last year. I moved from Tucson, AZ renting out that house now that I purchased a few years back. I work overseas currently and looking to invest into quadplex's currently. I have spent quite a bit researching, listening to podcasts and trying to contact people that already invest currently but have seen not that much about using a VA loan for investments! I have about 20k saved up so far have a current loan out on one house and am looking to make some passive income. One of my goals is to make $1000 min from a property by the second beginning of the second quarter 2021. Does anyone here have experience using a VA loan to invest? Is it the best option? Also how does everyone feel in the current status we are in with the pandemic? Is now not the time to invest due to uncertainty with lockdowns?

Thanks for taking the time to read/respond,

Tanner

@Tanner McKinley , I used my VA on a duplex, and it helped me get a jump start in the industry.

A few things:

Was your last loan VA? If so, you'll have to clear that loan before you can use it again.

Are you saying you want to buy a quad in the US while living overseas? VA requires you to move into the building initially.

Or are you planning on buying a quad where you are now overseas? That's a much more complicated question, but it would help if you say which country you're in.

Honestly, the VA is really not that much better than an FHA, but if you're buying investment properties you don't intend to live in you'll have to use an investor loan at a higher rate and larger down payment.

@jacobpereira

According to VA homes united I can use my VA loan again while keeping the current home on that loan. Yes i'd like to purchase being overseas if possible I come back for a couple months out of the year so that would be the best time I would "move in".

I am not aware of any VA loans that are not owner occupied. I was in the industry for 11 years and although VA wasn't my specialty, I don't believe I ever did a VA multi family loan, also the rules were back then, one time event, dollar down is what I was helping people with. Owner occupied 4 plex VA loan? I don't think there is such a product.

Best

Brian

@Brian Mello

You can definitely purchase a 4-plex using the VA loan. The VA loan requires that you live in it as your primary home and you can use it for property up to 4 units. This is direct from the va.gov site for VA loans.

@Tanner McKinley -  Hey Tanner.  Our market is directly tied with the Fort Drum military base, so we help military investors with this all the time.  

The VA loan is easily the greatest mortgage product out there for any new investor. There's nothing else that allows you to purchase a 2-4 unit for absolutely zero money out of your pocket. There's no PMI either (however the VA funding fee is essentially all of the PMI paid upfront).

You can also do a VA 203k loan to buy a fixer upper for $0 down. There's also new construction VA loans as well.

There's very few reasons NOT to use it if you plan on occupying the property at all.

Good luck!