Military VA LOAN

11 Replies

Hello everyone my name is James, active duty military. I just had a question about using the VA LOAN to possibly flip houses. I been in for 5 years now and people keep telling me to get into with out giving me info that I need. Is there anyone out there that has done this and can give me a run down of the process or the things I need to know?

sorry bro, this program won't support flipping houses , because this home would need to be your primary residence , and you must occupy for one year , there are some to ther reason however they escape me right now 

So what if I bought the house with the loan? Could it be flipped then?

At some point, I believe at the closing table you will be required to sign a document which states under that you will occupy this property as your primary residence.  If you had the intention of flipping this property before you bought it and then flip it.  Then you could be prosecuted for fraud. 

Hi @James Booker  welcome to BP!

My husband is in the Coast Guard and we're looking to buy our first property with a VA loan soon. As such, I've done quite a bit of research on its requirements and unfortunately for you, the VA Loan requires that properties meet certain Minimum Property Requirements which essentially means it must be "move in ready" and therefore can't be a fixer upper.

However, it is an excellent choice for a buy-and-hold strategy because you can buy up to a 4 unit property with no money down, live in one of the units for a year, and then move out and rent the unit you were occupying.

Make sure you do your research, there is a lot of mis-information about the VA loan. For example, it's "common knowledge" that the VA Loan maximum is $417,000. However, if you live in certain "high cost" areas (i.e., the Bay Area like we do) then the maximums can be much higher. Also, the more units your property has, the higher the loan limit. In our case, if we bought in Contra Costa County or Alameda County, our limits would be:

Single family: $625,500;  Duplex: $800,775; Triplex: $967,950 ; 4Plex: $1,202,925

For you, living in Killeen which is in Bell County, your limits are:

Single family: $417,000; Duplex: $533,850; Triplex: $645,300; 4Plex: $$801,950

That info can be found http://www.benefits.va.gov/homeloans/purchaseco_lo...

Hope that helps!

Jessica

@James Booker  

The best you can do with the ca is buy a 2-4unit and house hack your way to flipping. Read some of Brandon turners blogs on house hacking. 

Where are you at bliss or hood? 

@James Booker  

I need to modify my comments (I can't figure out how to just delete my post and post a new one). In 2015, there is only one loan limit for VA, regardless of number of units. Your max amount for any number of units is the first column in the document I posted above. My apologies for being one of the ones who is perpetuating mis-information!

Sure, you can do a live-in flip (or flip-in, depending on preference). You could purchase a fixer-upper that's still livable and slowly make it nice while you live there, and when you PCS, sell it for a profit (hopefully). The only issue you might run into is the appraisal which can be more strict when the VA comes into play. There could be a huge grey area when it comes to your definition of a "fixer upper" in comparison to theirs.

Best of luck...Wish I would've done this while I was in!!

@Jessica Skupien  and @James Booker  

Hi James! I'm an agent in the Fort Hood area. Jessica's advice is spot on. Getting a foreclosure or TLC property with a VA loan can be difficult because the VA loan requires the home to be in pretty darn good condition already.

Also, if you PCS or deploy, that is another "out" of the owner occupancy. Just like a lease, your orders serve as a reason for moving. My first VA loan (I have two) I only lived in for six months before I was PCSed to Hood, at which point I began renting it out. VA can be a great option for that strategy - great financing and live in it at a station and then rent it out when you move (though you can only have 2 active VA financed properties at a time, irrespective of the VA loan limit).

Speaking of which, there are no multifamilies in the area for over $417k anyway.  I bought my own fourplex in the area for $177k, and it grosses $2290 a month (for about $300/mo cash flow after expenses).  

Hit me up if you have any questions about the local market or properties!

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