Does anyone have good info on VA loans
I’m not sure what your question is. The VA Loan is meant for your primary residence. You can buy up to a fourplex with it as long as you live in one of the units. There are many businesses you can run from your home, though. If you plan on running a retail business from one of your units it’s not going to work.
Greetings from California and thank you for your service ... As a fellow vet let me say this - If this is your first time purchasing a property and you want to use VA, don't play yourself buying an SFR. Buy a duplex, triplex or even a four plex!!!
Buy in a decent area (B or C neighborhood) since you'll be staying there for a minute and plot your next move. The VA Loan has some pretty stringent rules which is good for a novice investor. I'd think about doing the following:
As far as running a business, many veterans have used the VA home loan to purchase their primary residence and run home based businesses so I don't think there is an issue there but i'd check with a VA lender.
Ditto what @Hector Rodriquez said. Buy ANYTHING ELSE other than a SFR and live in one of the units, rent out the rest. Fun fact, you just have to reside in your primary for 12 months after closing.
Go for the four unit! It maximizes the leverage available to you with a super low down payment at historic low interest rates. I am looking for the same thing right now using FHA. Look up the 'get rich education' podcast by Keith Weinhold. He lives in Anchorage as well and on his podcast details how he started out with a 4 unit and worked his way up through 1031 exchanges. His story relates perfectly to your situation.
My coworker who is a Navy vet is currently using the VA loan to purchase a duplex. Per our last conversation this past Friday, he informed me that the VA is requesting for proof that he has been a landlord and he is scrambling to provide this documentation.
Based on this information, If you are still planning to use your VA Loan benefit, I would advise you to work with an experienced VA Loan Specialist to get all the intel upfront to minimize any sudden home buying contingencies.
Hector Rodriquez your friend likely doesn’t have the income to be approved for the purchase on his own. The VA loan requires proof of land-lording previously if you require the income from the other units to get approval for the loan. If you have not had that experience the FHA loan allows you to use up to 75% of the appraised rental income in your loan approval without experience. That may be an option for your friend if VA doesn’t work out, but that obviously changes the numbers significantly.
Another advantage with the FHA is a seller can pay up to 6% of the loan in buyers assistance with the VA only allowing 4%.
@Jared Viernes:
Correct he was purchasing the property with his brother in law and the asking price was 885K. (So Cal). Good news is that he was informed that they will be closing this Friday.
I’ve just rented out my SFH that I used a VA home loan to purchase. I would see what your bank allows as well as the van. I wouldn’t count out a SFH if it has a “mother in law suite” or a garage apartment.
Va Home Loans will only work if you the house is move in ready. It’s kind of a pain but if you have any questions just reach out to me.
Originally posted by @Anthony Rodriguez:
I've just rented out my SFH that I used a VA home loan to purchase. I would see what your bank allows as well as the van. I wouldn't count out a SFH if it has a "mother in law suite" or a garage apartment.
Va Home Loans will only work if you the house is move in ready. It’s kind of a pain but if you have any questions just reach out to me.
Roger that ...