VA loan cap removal questions

7 Replies

Hey everyone, the VA loan cap was removed last week. Great news! That brings to mind a couple of questions:

- Are va loans still capped at no more than 4 units? Or is my dream of getting a 50 unit apt complex with a va loan now possible?

- Does this affect the overall va total loan eligibility (across potentially multiple loans)?

@Chris Mason probably has a better handle on this. I would guess that you will not be albe to buy that 50 unit apartment complex. Most likely they will still make you have the appropriate DTI ratio, credit score, etc.....and it most likely will be a max of a 4-plex you can buy.

Originally posted by @Taylor Chiu :

Hey everyone, the VA loan cap was removed last week. Great news! That brings to mind a couple of questions:

- Are va loans still capped at no more than 4 units? Or is my dream of getting a 50 unit apt complex with a va loan now possible?

- Does this affect the overall va total loan eligibility (across potentially multiple loans)?

 - Yes.

- Unknown. 

Effective implementation ETA that "they" are saying is Jan 1, 2020.

Quick friendly civics reminder: Congress creates laws. Bureaucrats and political appointees implement them. And, if needed, the judiciary ensures that the implementation matches the letter of the law, should anyone challenge it. This law has not yet been implemented. 

No lender is going to risk doing a VA loan based on what they guess the guidelines might read in 5 months...

Originally posted by @Chris Mason :
Originally posted by @Taylor Chiu:

Hey everyone, the VA loan cap was removed last week. Great news! That brings to mind a couple of questions:

- Are va loans still capped at no more than 4 units? Or is my dream of getting a 50 unit apt complex with a va loan now possible?

- Does this affect the overall va total loan eligibility (across potentially multiple loans)?

 - Yes.

- Unknown. 

Effective implementation ETA that "they" are saying is Jan 1, 2020.

Quick friendly civics reminder: Congress creates laws. Bureaucrats and political appointees implement them. And, if needed, the judiciary ensures that the implementation matches the letter of the law, should anyone challenge it. This law has not yet been implemented. 

No lender is going to risk doing a VA loan based on what they guess the guidelines might read in 5 months...

 @Chris makes great points here, of course. And sometimes the Supreme Court makes up laws based on convoluted arguments like Obama Care and then those laws are later changed, modified, and repealed.

I wouldn't waste a moment's speculation until a "clarification" of the law "once enacted" is issued. There are sure to be "clarifications".

Originally posted by Account Closed:
Originally posted by @Chris Mason:
Originally posted by @Taylor Chiu:

Hey everyone, the VA loan cap was removed last week. Great news! That brings to mind a couple of questions:

- Are va loans still capped at no more than 4 units? Or is my dream of getting a 50 unit apt complex with a va loan now possible?

- Does this affect the overall va total loan eligibility (across potentially multiple loans)?

 - Yes.

- Unknown. 

Effective implementation ETA that "they" are saying is Jan 1, 2020.

Quick friendly civics reminder: Congress creates laws. Bureaucrats and political appointees implement them. And, if needed, the judiciary ensures that the implementation matches the letter of the law, should anyone challenge it. This law has not yet been implemented. 

No lender is going to risk doing a VA loan based on what they guess the guidelines might read in 5 months...

 @Chris makes great points here, of course. And sometimes the Supreme Court makes up laws based on convoluted arguments like Obama Care and then those laws are later changed, modified, and repealed.

I wouldn't waste a moment's speculation until a "clarification" of the law "once enacted" is issued. There are sure to be "clarifications".

You will be able to get a VA loan using the law as implemented, once implemented, without waiting for any court ruling. And it'll be a good, legit, 30YF. In the event that some court ruling comes along, you might not be able to refinance that loan on that property, however. 

(Thinking here of a $5m 0% down VA loan on a McMansion that's also your 2nd or 3rd concurrent VA loan, oh and the >$100,000 VA Funding fee was waived because you're disabled.)

@Chris Mason

Thanks for your input! Was hoping you would chime in on this one. Sounds like we’ll just have to sit back and wait to see how this all develops.

Btw, I was confused at first cause your profile pic changed haha

@Ty Cover

It removes the loan limit on an individual va loan. I don’t think it has any impact on how many properties you can get overall.