Veteran New to Bigger Pockets- Ways to use VA Laon

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Veteran New to Bigger Pockets- Ways to use VA Laon

Isreal Price
Real Estate Agent · Laurel, MD · Member since 2017 · 9 posts · 3 votes

Hi, I 'm a newbie, live in Maryland and looking to use my VA loan to purchase a Multi-Family to house hack and possibly use the BRRRR method . I work for the post office so my salary is ok but could definitely use a bump and my credit score is "ehhh" ( other words not that great).

Having the Va loan gives me access to no down payment, low to no closing costs and no PMI, which is a huge plus but my credit score and salary for a lack of better words "suck", so I wanted to know if anyone has used the benefits of the Va loan to partner with someone who "resume" might be better ? Or if there is any creative ways to leverage no down payment when trying to invest in a multi-family property and personally not in the best position.

Thanks for any feedback. I love bigger pockets and listen to the podcasts almost daily. I  used  to be an agent and I have learned more here than I ever did in a real estate class. I am a firm believer in sharing information and the community that has been built here is great!

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Malcolm Lawson
Annapolis, MD · Member since 2015 · 132 posts · 52 votes
9y

Hey @Isreal Price , as long as one of the units is your primary residence and it is a 4 unit or less, you can use your VA loan. You do not have to put anything down on the home but you don't forget about the VA funding fee which is 2.15 percent of the purchase price.

You're not great credit score is probably what is going to hurt you.  You should start talking to a lender now just to see how much you pre-qualify for as this will determine what options look like.

Another thing people often don't know about the VA loan is you can purchase more than one home with it as long as both are under your maximum VA loan amount for your county. Like what I did was purchase a cheap home in Annapolis MD, then moved out and rented it then purchased another cheap home in Waldorf MD and some day I will move out of here and rent this one as well. If you don't qualify for a large loan due to your credit score, this might be a better option for you right now.

Check out my profile on BP, I have a video on it where I talk about investing using the VA loan.

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  • Alexander FelicePro Member
    Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    9y

    don't think you can do it. I've tried.

    to get a VA loan, you have to be on it solo, or you and your wife, or you and another veteran I think would work.

    but you and a non-VA qualified applicant can't co-sign together.

    Also, you won't get the best rates with a lower score, even using the VA loan.

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  • Gabriel G.
    Real Estate Agent · Baltimore, MD · Member since 2014 · 215 posts · 123 votes
    9y

    @Isreal Price unfortunately I believe @Alexander Felice is right. I will commend you for at least thinking in the right direction. I personally did/do the house-hacking strategy and I did use my VA to purchase it. I'd suggest maybe looking at other nearby areas where you can get a multifamily for cheaper (aka Baltimore).

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  • Mitchlyn D.
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
    9y

    I'm currently in the process of doing a VA home renovation loan so you might want to look it up. I'm still renegotiating the price but if I can close, this would be amazing.

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  • Joshua ThompsonBusiness Member
    Accountant · Melissa, TX (Remote) · Member since 2017 · 210 posts · 135 votes
    9y
    Originally posted by @Mitchlyn D.:

    I'm currently in the process of doing a VA home renovation loan so you might want to look it up. I'm still renegotiating the price but if I can close, this would be amazing.

    I'm assuming this is a VA home renovation for a property you plan to live in for awhile?

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  • Mitchlyn D.
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
    9y

    @Joshua Thompson yes, the goal is to fix it up and live in it for 12 months.   Then purchase another property.

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  • Mojan Malak
    Vienna, VA · Member since 2017 · 7 posts · 0 votes
    9y

    Hi Israel,  Do you want to call me tomorrow afternoon, I may have a solution . 

    Best, 

    Mojan Malak

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  • Joshua ThompsonBusiness Member
    Accountant · Melissa, TX (Remote) · Member since 2017 · 210 posts · 135 votes
    9y

    @Isreal Price  

    I've done some reading and I'm pretty sure with the VA loan your cosigner must be a fellow veteran that is eligible for the VA loan or a spouse (said above). However, if you have bad credit increasing your down payment should help your odds. If you don't have the fund this is where your partner can come into play. He can loan you the money for the down payment (make sure to get everything in writing) and that should help your odds. If it turns out he won't spot you the down payment and you find out he can't be on the loan there for sure are other options. If you can't think of any, ask BP in another post.

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  • Malcolm Lawson
    Annapolis, MD · Member since 2015 · 132 posts · 52 votes
    9y

    Hey @Isreal Price , as long as one of the units is your primary residence and it is a 4 unit or less, you can use your VA loan. You do not have to put anything down on the home but you don't forget about the VA funding fee which is 2.15 percent of the purchase price.

    You're not great credit score is probably what is going to hurt you.  You should start talking to a lender now just to see how much you pre-qualify for as this will determine what options look like.

    Another thing people often don't know about the VA loan is you can purchase more than one home with it as long as both are under your maximum VA loan amount for your county. Like what I did was purchase a cheap home in Annapolis MD, then moved out and rented it then purchased another cheap home in Waldorf MD and some day I will move out of here and rent this one as well. If you don't qualify for a large loan due to your credit score, this might be a better option for you right now.

    Check out my profile on BP, I have a video on it where I talk about investing using the VA loan.

    3Reply
  • Jake Haley
    Investor · Annapolis, MD · Member since 2017 · 7 posts · 2 votes
    9y
    Malcolm Lawson - do you have any advice on best areas to buy in Annapolis for good rental cash flow? I have a rental in Baltimore but have been looking in Annapolis as I live about 10-15 minutes from downtown Annapolis now. It is seemingly expensive everywhere, and if it's not expensive it's a bad area... any advice on the Annapolis rental mkt would be much appreciated!!
    0Reply
  • Gilian GegawinPro Member
    Virtual Assistant · Scottsdale, AZ · Member since 2017 · 236 posts · 38 votes
    9y

    @Isreal Price  Hey there, Isreal. Great to see you take that first and maybe most difficult step in real estate investment: reaching out on BiggerPockets. Congratulations and I wish you a ton of success.

    0Reply
  • Isreal Price
    OP
    Real Estate Agent · Laurel, MD · Member since 2017 · 9 posts · 3 votes
    9y

    @Gabriel G Thanks for the response. What type of property did you house hack and how long are you planning to stay in that property?

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  • Isreal Price
    OP
    Real Estate Agent · Laurel, MD · Member since 2017 · 9 posts · 3 votes
    9y
    Originally posted by @Mitchlyn D.:

    I'm currently in the process of doing a VA home renovation loan so you might want to look it up. I'm still renegotiating the price but if I can close, this would be amazing.

    Thanks for the response. I did not know there was a Va home renovation loan. I heard of an energy upgrade loan but otherwise I heard they want the property to basically be turn key when using VA loan. Who did you use to get this loan and what type of property are you purchasing?

    0Reply
  • Isreal Price
    OP
    Real Estate Agent · Laurel, MD · Member since 2017 · 9 posts · 3 votes
    9y
    Originally posted by @Malcolm Lawson:

    Hey @Isreal Price , as long as one of the units is your primary residence and it is a 4 unit or less, you can use your VA loan. You do not have to put anything down on the home but you don't forget about the VA funding fee which is 2.15 percent of the purchase price.

    You're not great credit score is probably what is going to hurt you.  You should start talking to a lender now just to see how much you pre-qualify for as this will determine what options look like.

    Another thing people often don't know about the VA loan is you can purchase more than one home with it as long as both are under your maximum VA loan amount for your county. Like what I did was purchase a cheap home in Annapolis MD, then moved out and rented it then purchased another cheap home in Waldorf MD and some day I will move out of here and rent this one as well. If you don't qualify for a large loan due to your credit score, this might be a better option for you right now.

    Check out my profile on BP, I have a video on it where I talk about investing using the VA loan.

    Thanks for the reply. Using the Va loan to purchase 2 smaller properties instead of 1 big one is a great idea that  I knew thought of. I live in Howard County so the maximum Va loan amount is pretty high that would most likely give me room to purchase 2 properties . I am looking for creative ways to maximize the Va loan and this is awesome. Thanks and I will check the video out.

    0Reply
  • Malcolm Lawson
    Annapolis, MD · Member since 2015 · 132 posts · 52 votes
    9y

    @Jake Haley You are right, Annapolis can be very expensive and hard to get into.   The rental I have is in Cape St. Clair which is in the Annapolis zip code of 21409.  Properties are a little more reasonable out there and they have great school zones.

    Don't expect much that meets the 2% rule though.  If you can find something that gets you at least 1% of your all in price as rent, that's pretty good in this area.

    0Reply
  • Mitchlyn D.
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
    9y
    Isreal Price I'm getting the loan through a company named Loan Depot. The property I'm getting a duplex.
    0Reply
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