Opinions on VA loans?

Question

Hi everyone,

I’m new to investing and I am also a veteran. I was considering using a VA loan to buy my first rental property due to the no down payment needed. Is this a good idea? Any input would be helpful. Thanks!

David Oldenburg · Answer

@Jacob Roland  Yes, the VA has rules against buying a property to rent it.  I think in the past you had to live there for at least 12 months, unless there was a life event that you could document that changed your plans.  However, buying a home with zero down payment is a great opportunity and VA has decent rates etc...  Be careful as many homes are not good rentals. Do your homework in advance and make sure you will be able to rent it for enough to make sense with your actual PITI payment, possible repairs, and other expenses.

Kyle Tipton · Answer

@Jacob Roland. I’ve used the VA loan twice to buy and later turn into a rental so it’s definitely doable and very beneficial. However there are some caveats to using it, it’s not as easy as buy a house with no money down and rent it. The VA has some strict requirements and has a funding fee (which goes up with each use and can go down with a down payment and/or VA disability.

Please ask any questions you many have. I’ll answer the best I can. Also, I’d recommend getting with a local credit union or small local bank and talk to a loan officer that specializes in VA loans.

Richard Ring · Answer

Yes .it is no.downpayment

However,

There might eanest money,

Appraisal and closing costs

And home insurance that needs to paid 1 year in advance .

You should be approved for 450k however

Can you afford the monthly payments