Can I use USDA if I'm currently using VA Loan

3 Replies

I am trying to figure out ways to creatively finance my 1st rental property investment. I have already used/am using a VA loan for my current property that I am living in. I want to know if I am able to use a USDA loan while actively utilizing a VA Loan?

I'm researching this as well but I figured "Hey, I'm a biggerpockets member! Why not ask?"

@Devante Boll Like VA and FHA loans, USDA loans are only for owner occupied properties, so you can't use them to buy an investment property.

@Stephanie Irto I appreciate you replying. I’m trying not to be impatient & wait until I have more cushion in funds. I’ve just been analyzing numerous properties & find some to be what seem like good investments. I’m focusing on buy & hold properties, so using high interest hard money or private money is a little intimidating. 

@Devante Boll

Some people use multiple government loans, FHA, VA, USDA, but @Stephanie Irto is right, they must be owner occupied.  Having said that, there are situations that arise that make people have to move and they make allowances for that.  You have to be smart about it though.  If your current FHA home is a 2500 square foot cape cod with a white picket fence, half a mile from your office, an underwriter will certainly question whether you're going to move into a 2 unit building that's further away from where you work.  The opposite is true as well.  If you're in a multi unit property, moving to a sfr that's larger to accommodate a growing family or closer to work makes sense.

Don't be afraid of hard money and then long term business purpose financing.  It's just math.  Assemble your team of professionals (Realtors, lenders, renovation guys) and trust their numbers.  If you're able to pick up a multi unit property with just 10% down plus closing costs and get the renovation covered 100% (that money exists) and then quickly refinance out of the acquisition money using the new appraised value to 75% loan to value (that money exists also) where's the downside?  The lender isn't going to lend to you if the value or margin isn't there because they don't want to be over extended on a property.  If you manage your costs appropriately, you should be able to get the work done with minimal money out of pocket.

Best of luck


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