VA Loans - Is there a rental scenario when moving on?

Question

My brother-in-law owns a house which he has lived in it for 10 years, using a VA loan.  He is now relocating out of state.

Question:   Can he rent it out without issue (being that it is a VA Loan)?  He is NOT worried about needing the VA Loan Eligibility to purchase the new-home-to-be.

I looked briefly on the VA Benefits website but they only talk about getting INTO a loan... and NOT about a Renting (EXIT) scenario.

Also would the renters have to be veterans themselves? Or could they rent to anyone?

Thanks in advance for your help.

Dave

Mike Cumbie · Answer

Hi @Dave Godfrey,

Not a mortgage broker but I do have a VA loan and it is my understanding.

1) As long as he has met the requirements (1 year) he can keep the house and rent it out to anyone he sees fit. (He still owes on the mortgage of course)

He can actually get another VA loan while maintaining that one if he is moving far enough away for cause (Sounds like states away due to job or some such would qualify) and have 2 VA loans if he wants.

Dave Godfrey · Answer

@Upen Patel @Mike Cumbie   Thanks so much for the info!

Upen Patel · Answer

@Dave Godfrey, @Mike Cumbie is correct. Since the 1 yr occupancy requirement has been met, there is not issue with renting out the property. If he has unused VA loan benefit, then he can potentially use it for a 2nd VA loan. The benefit does not have to cover the complete "down payment" requirement. He can use the benefit to cover partial "down payment" and he can put in the rest, and it would still be a VA loan. Get the low VA rate and no PMI even if his cash in was under 20%.

Kevin Harrison · Answer

As long as he has occupied the home for more than 1 year he has completed the VA requirements and is free to move out and rent the house. Although if he wants he can refinance the home and use his VA loan again for another down-payment free home loan.

VA Loans - Is there a rental scenario when moving on?

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