VA Loans Used for Plexes

4 Replies

Howdy,

As I understand it, VA Loans can be used for multi-unit properties up to 5 units so long as one of the units is the primary residence.

I'm looking for advice here from any local investor with experience in the process .

Thank you in advance! :]

depends on what you mean by 5.  It's up to and including 4 units but no more.  Other than that you are spot on.  They even increase the amount of your entitlement based on the number of units the property has.

This link may help you find more info if you haven't already checked it out:

https://va.org/financing-multifamily-homes-with-a-...

@Nick Macklin For loans with a single lender, it is up to 4 residential units plus a business unit per pg 3-5 in VA Lenders Handbook Chapter 3.

However in the case of a joint loan, VA Lenders Handbook Chapter 7 clearly states: 

"If a property is to be owned by two or more eligible veterans, it may consist of four family units and one business unit, plus one additional unit for each veteran participating in the ownership. Thus, two veterans may purchase or construct residential property consisting of up to six family units (the basic four units plus one unit for each of the two veterans), and one business unit."

While these are the theoretical limits, I haven't run into many real life examples that go beyond 4 units. Would to love to know about any lenders that can and have written VA loans for 4-6 residential plus business though.

EDIT: To answer the original question, should be aware that once you go over 5-units the lending landscape is very different VA considerations aside. Resale will likely be more difficult than it would be if you stuck with 4 units or less.

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