I am currently in the midst of my 3rd large single family renovation project which is in a very busy vacation rental market. It will rent well and cash flow nicely once it's done this summer. However, I have all of my capital tied up as well as my debt/income so I cannot apply for another loan right now. My dad is a Veteran and I wonder if it makes sense to partner with him somehow and use his veteran status for a VA loan on another project I want to pursue. I looked up the guidelines and I think all the criteria can be met. Just not sure how I can help with the loan or be a partner financially, or does it just have to be all him for qualifying? I have all the real estate experience, he has none. Not sure I can even talk him into it!
*I am not a VA expert*
VA loans since 0% down are very particular in the condition of the home being financed.
Most likely your name could not be on the deed, it would just be your father.
You could make an agreement between you guys outside of holding title together, but not as secure.
VA financing is only available if he intends on living in one of the units.
Yes, I forgot to mention that we would occupy one unit. Thanks for the reminder!
Hi @Lisa Sullivan ,
If your dad intends to occupy one unit then he will have to apply for a loan on the property, since the loan will have to be in his name as the veteran. However, because you are family you may be able to talk the bank into allowing you both to be on the loan. I would shop around to local banks in your area that offer VA financing.
If you are unable to get on the loan together, there are still other partnership possibilities here. You can provide your father with all the help he'll need to evaluate opportunities and walk him through the acquisition process.
You can take on all the responsibilities of managing the property yourself as well. You'll also have dedicated eyes and ears on the property at all times with him living there which is another added plus. There are so many benefits and opportunities I can see here for you.
I hope this helps Lisa and I hope you're able to make this work for your next investment opportunity!
Thanks for all the advice, I appreciate the thoughtful suggestions!