Looking to Purchase First Rental Property Using VA Loan.

Manchester, New Hampshire
Buying & Selling Real Estate
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Looking to Purchase First Rental Property Using VA Loan.

Robert Hewitt
New to Real Estate · NH · Member since 2023 · 3 posts · 2 votes

Are there any suggestions, experiences, or resources that can assist me to purchase my first rental property using a 0% down VA loan and not have to live in the property?

I live in NH, and I am looking to purchase a duplex or Multi-family property. If I use a VA loan, I am told I have to occupy the residence for at least 12 months. The problem with that is location, location, location. All the properties that I have seen on the market that are in my cost range are either too far from where I work or are not worth (in my opinion) for me to purchase.

It would be much easier if I did not have to live at the property, so I am just trying to figure out if there are any work arounds (legal) for me to use a VA loan without having to live at the property.

Thank you

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  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    10mo

    No legal workarounds here. The rule is set up to prevent investors from using the VA benefit for investment. Your best bet is to purchase a 4 plex with the VA loan and rent out 3 units while living in the 4th.

    0Reply
  • Robert Hewitt
    OP
    New to Real Estate · NH · Member since 2023 · 3 posts · 2 votes
    10mo

    Thanks Benjamin.

    0Reply
  • Camren BerryPro Member
    AZ · Member since 2021 · 86 posts · 14 votes
    10mo

    Hey Robert, it can really be hard to find the right deal, especially if your trying to house hack to get into the game.  I actually work with first-time and long time investors to find solid rental deals in good markets, especially for people who don’t have the time or local connections yet. We focus on finding properties at a discount, running the numbers conservatively, and connecting investors with trustworthy local crews so the process is a lot smoother. I see a lot on BP that house hacking is the way to go, but every strategy has its advantages and disadvantages. Getting advice is always a great way to know your options

    [email protected]480-818-6158
    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    10mo

    @Robert Hewitt

    If you get a VA loan, you have to live in the home. The rule says you need to move in within 60 days of closing and stay for at least a year. You can't get around this rule, so you can't just buy a place as an investment without living in it first. A lot of people house hack they live in one part of a duplex or multifamily home and rent out the rest. That way, they meet the living requirement and still make some money. If you really need to buy investment properties in different places, you should look into regular loans instead.

    Good luck!

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    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    10mo

    Nope, VA loans are for owner occupancy only.

    0Reply
  • Kevin Purcell
    Member since 2024 · 1 post · 0 votes
    9mo

    Hi Robert,

    Thanks for sharing your situation this is a great question and one I see often.

    I wanted to let you know that I do have a lender who can assist with VA loan questions and scenarios like this, in case you don’t already have one you’re working with. They’re very knowledgeable about VA loan guidelines, including occupancy requirements and what is and isn’t possible from a legal standpoint.

    I’m happy to connect you with them if that would be helpful, or we can continue the conversation if you already have a lender in place.

    0Reply
  • Marina Sorbie
    Realtor · Washington DC · Member since 2024 · 19 posts · 8 votes
    9mo

    Legally, there is no way to bypass the occupancy requirement, you must certify your intent to live in the property as your primary residence to use a VA loan. Failing to do so is considered mortgage fraud. However, for a multi-family property, the VA allows you to use up to 75% of the projected rental income from the other units to qualify for the loan. This added buying power could allow you to afford a more expensive property in a prime location closer to your work, making the 12 month occupancy more feasible. If you absolutely cannot live on site, you would need to use a DSCR (Debt Service Coverage Ratio) loan, which allows for 0% occupancy but requires a 20-25% down payment.

    0Reply
  • Andrew BoscoBusiness Member
    Rental Property Investor · NH · Member since 2023 · 446 posts · 421 votes
    9mo

    @Robert Hewitt hey Rob - i have some options if you're looking to do this with a multi-family loan. Handful of brokers can help you! 

    [email protected]603-833-0951
    Andrew Bosco - Candor Investment Group532 Reviews
    WebsiteView Page
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