Hello, Bigger Pockets Family. I am very interested in buying a Rental Property. I guess my question is as a Veteran can I use my VA loan to start my journey or should I go another route?
You have to be an owner occupant for VA loan. Of course majority of lenders that provide VA loans does not have a time-frame on how long you have to occupy the home. I have a VA loan deal I am working on, but it is going to be my primary home and will be pulling out the equity to fund other properties. On my contract, it only states that at the time of closing, I have the intention to occupy the home.
VA loan is awesome tool if you run your numbers right. You basically have to find a house atleast 15% undervalue with high rental income to make good cash flow with a VA loan. Most of those are going to be homes that you have to rehab. Luckily there the VA just released a guideline for a new loan called the VA RENO 30 yrs fixed: https://www.benefits.va.gov/HOMELOANS/documents/ci...
However, there is only one lender that I have talked to out of hundreds that does this loan, and they don't even advertise that they do it since it is so new and are not willing to do it. You have to find the regional loan officer for your area and have him sign off on it. If you just call their regular phone number, the guy on the other line won't know what you are talking about because they follow a script and only offer products that are advertised. I will actually be the first one for them to do a major rehab (more than $110k renovation project). There used to be another lender that did it under the old guideline which stated you can only do cosmetic renovation under $20k, but that lender got bought out by the lender I am going thru.
thanks a lot for the info, Ezekiel!