Accountant · Orcutt, CA (93455) · Member since 2019 · 58 posts · 21 votes
I am reaching out to some of the veterans out there and also some of the brokers out there who deal with VA loans.
What can a veteran do with this type of loan? Is there a creative way to use this type of loan to buy investment properties?
I own my primary house and want to use the VA loan to buy an investment property and continue to use it throughout my investment journey.
However, I have heard you can only use this type of loan on a primary resident. Is there any "creative" ways I can utilize this loan and still have my primary residence, or do I need to quit claim my primary to be able to utilize this type of loan?
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
4y
VA loan is a fabulous tool. ONLY for owner occupied. What about existing house? Is there equity? Refinance VA to access funds? Buy up in value? Move for new job. Have to make housing change based on real needs that can be documented on paper...
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
4y
VA loan is a fabulous tool. ONLY for owner occupied. What about existing house? Is there equity? Refinance VA to access funds? Buy up in value? Move for new job. Have to make housing change based on real needs that can be documented on paper...
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
4y
@Rohme Williams In my opinion, the best way to use the VA loan is to "house hack". This is when you purchase a 2-4 unit property on your VA loan (zero down, super-low interest rate, just pay closing costs), live in one of the units, and rent out the others. This can also be done on a regular single family home where you rent out the rooms, but most people want more privacy than that.
My wife and I just purchased a home in San Diego a few months ago using this exact strategy! Good luck and keep us updated. I'm happy to answer any questions you have as well.
Astoria, NY · Member since 2019 · 6 posts · 8 votes
4y
You wouldn't need to quitclaim your current primary house. You could keep it in your name and rent it out. However, since the VA Loan is for owner-occupied properties, you would have to live in the investment property for at least one year. As @Doug Spence mentioned, the VA Loan is ideal for a house hack in either a multi-family or single-family home. Once you're eligible, you refinance your VA Loan into a traditional loan and pay back the VA Loan so you can use it again on another owner-occupied property.