Need clarification for VA borrower and multi-family
I have a military buyer looking to buy a MFR property and house hack. I'm getting conflicting advice from the loan officers and hope Bigger Pockets can help.
In short, MUST a VA borrower put down 20% (or any amount for that matter) on a triplex or fourplex. keyword=must. I know they "can," and I'm not looking for "can."
thanks
@Patrick Britton depends on the loan amount. Now that was before the VA changed to having "no limit" this year I believe. But to try and answer your question from what I've gathered on here is they SHOULDNT HAVE TO put any money down.
Originally posted by @Patrick Britton:I have a military buyer looking to buy a MFR property and house hack. I'm getting conflicting advice from the loan officers and hope Bigger Pockets can help.
In short, MUST a VA borrower put down 20% (or any amount for that matter) on a triplex or fourplex. keyword=must. I know they "can," and I'm not looking for "can."
thanks
Assuming full VA entitlement (no existing VA loans), no they do not have to make a down payment.
Not all mortgage banks are fully honoring the new VA loan rules that came into effect 9 days ago. And even for banks that are, not all loan officers availed themselves of the very significant changes. Here are 3 links from va.gov directly:
@Patrick Britton sounds like a lender overlay.
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@Patrick Britton you've got good reposes above and I just wanted to weigh in on why a lender might be saying such a thing. Maybe your customer cannot "afford" the house and needs 20% down? Maybe they aren't using the rental income for the property to help the customer qualify? In either case, I would reinforce that your customer needs to find a different lender. VA loans do allow rental income to be used immediately and if they cannot "afford" it...I would still get a 2nd opinion. Anyway, hope it all works out. Thanks!
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