Veterans Administration Loan

7 Replies

Brandon, how are you? I am very interested in real estate investment. I have watched some the good information you put out and it made more interested. I need to know if you have anything on using the VA process to do this kind of investment? I have been trying to figure out all the benefits or advantages using VA loans. Any input?.

The VA loan is a pretty powerful tool, but just like a flathead screwdriver, it's not the best tool for every job.
I'm currently looking for a property using the VA loan.  The issue is that the VA won't fund a distressed property. This leaves me stuck with homes in good shape, which removes a lot of opportunities to force appreciation.  Someone with more experience can give you much more information.
Make sure you head over to the introduction forum and introduce yourself!  Also, check out the endless information under the "Education" tab.

@Tim Tele

@Jordan B.

The VA Loan is a great product. 100% Financing with no mortgage interest and low interest rates. You can go up to 4 units. The only issue I see is if you are choosing the route of up to a 4 unit property, without a 2 year rental history you would have to support the PITI payment with your income.

There are VA Renovation Loans for properties that need work. If you are looking for a fixer upper this may be the better route to go versus a traditional VA Loan.

Here are a few facts on the Renovation Loan: 

Product Overview

  • Combines home purchase or refinance (limited cash out) with home improvement financing in one loan with one closing.
  • Provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 25% of the "as-completed" appraised value of the property with a first mortgage, rather than a second mortgage, HELOC, or other more costly financing method.
  • Funds can be used for repairs or renovations that are permanently affixed and add value to the property.
  • Single Unit, Primary residence only
  • NO MOBILE/MANUFACTURED HOMES
  • Must be completed within 90 days of funding.
  • Up to 25% of the as complete value (Including contingency).

Conforming High Balance loan limits available where applicable.

Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923

Jerry, I like this. This could be my way in. The renovation loan. How much money do think I would need for a deal using this type of product. Do you have any property in that fits in this product? My mom lives in Westchester County I’m going to check there and try to partner with her. Can we talk about an example? I’m really interested. 

Its been discussed above already but the VA loan is incredibly powerful if being deployed under the right circumstances. Unfortunately the VA loan won't work for most of my rehab investor clients. But when you do spot a house and close on it; its a wonderful.... WONDERFUL feeling.

Please keep in mind this is all market specific. I'm referring to my own experiences.

Christian Reyes, Real Estate Agent in NY (#10401308226)

This isn’t quite what OP was asking but since it’s a recent VA loan topic I’m going to jump in — I believe my dad meets VA loan requirements (he served active duty in the army during the Vietnam war for 3+ years), but his only income now is social security, less than $1k/month, and I’m sure his credit score isn’t amazing.

I have a good income and credit score, and I would be willing to co-own a property with him as his primary residence (and pay for anything he can’t afford with his monthly allotment). Is this possible with a VA loan? ... And would it even matter with his low social security stipend?

If it could work, what are the options? Could I only be a co-borrower/co-signer, not a co-owner?

And a morbid question — would his passing trigger a due on sales clause?

Thanks for any input! I’ve been doing some reading but I realize this is a very tailored situation.

@Raquel Doheny I don't believe you can co-borrow with a VA loan unless you are a veteran or that veteran's spouse. However, I have to insist you speak with a lender whom offers VA loans. They would have way more accurate information on your situation.

Christian Reyes, Real Estate Agent in NY (#10401308226)

Hello,

I just joined, but figured I'd chime in. I'm active duty military and used my and my wife's (also veteran) VA loan benefits to get started with our buy and hold rental properties. We did the route of purchasing as primary residence, stayed in the property for the 2-3 years, and then rented the property out when we moved. We now have our primary residence and 3 rentals using the VA loan (as other said, up to 4 properties).

Very useful for getting into our property, but for buy and hold if doing the 0% down payment for a non-distressed property, will most likely have lower cash flow.

JT

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