Updated over 5 years ago on . Most recent reply
SHOULD investors use VA loans or consider Conventional loans?
Has anyone utilized their VA loan benefits to finance a property? What are the benefits of or draw backs with using this type of loan? Please advise.
Most Popular Reply
A VA loan can be used on a 1-4 unit purchase for 100% financing. However, they are only for owner occupied properties, so the borrower must live in one of the units. If it fits that scenario, then yes, a VA loan is perfect for that situation. A FHA loan is the next best as far as down payment goes on a 1-4 family, the down payment is 3.5%.
A conventional loan is 15% down on a single family unit and 25% down on a 2-4 unit property. Freddie Mac has as little as 5% down on a single family non-owner occupied loan.
I hope that helps?