VA LOAN Question

[Duane A. Snow]

I am looking to purchase a duplex or up to 4 plex of course owner occupied with a VA loan. Is there any banks, mortgage companies...ect that would let me borrow up to $300,000 with 0 money down and using rental toward income? I was told by one place that they would do up to $200,000 but higher then that they would ask for $10,000. That is their policy.

[Zack Karp]

@Duane A. Snow the short answer, yes.

The VA guidelines say you need to have prior landlord experience in order to use rental income towards qualifying. But what they don't say, is that there is a workaround for that. If you hire a property manager, that counts as your landlord experience.

Also in order to use rental income, you are required to have 6 months of the mortgage payment in reserves. Maybe that's what you are referring to about the $10K? But the reserves don't need to be liquid, you can use retirement funds, stocks, etc. And you can also use seller credits to have $0 cash to close, so that all of your funds can be used as reserves, and you don't need anything out of pocket for the entire transaction, you can even get your earnest money back.

If you need any help navigating all this and making this a reality for you, feel free to reach out. I've been doing this for 27 years, I specialize working with newer investors and house hackers, and I teach VA lending.

TYFYS and best of luck!