How to invest mult properties w/va loan “intend” to occupy?

3 Replies

I've finally been motivated to start investing in multi-family properties. Though I've researched quite a bit on the VA loan and it states I have to intend to occupy the residence once I've purchased. I know other soldiers have multiple properties through the va loan and my question is how, when it states you have to occupy what you purchase?

Is it legal for me to purchase a rental property and then house hack until I find a new property and repeat that process without living in the previous property?

I want to get into this, but I don’t want to get screwed legally.

You can house hack with the VA loan no problem! You can move into another residence and house hack again but there are some stipulations you will need to talk through with your lender. You can't just buy house after house in the same town (without selling, or refinancing to a conventional mortgage).

You will need to A. move more than 50 miles away (like a PCS), B. need to upgrade (family expanding), or C. find some other legitimate reason to move into another VA loan home in the same town. Best practice is being honest with your lender, you don't want to get slammed with mortgage fraud haha. The intent needs to be for it to be a primary residence, not investment...but you can still invest with it, just can't buy a home AS an investment, if that makes sense...this is all grey area, so as long as your lender(s) understand you'll be fine as long as you keep paying the mortgage.

No, you cannot purchase a property with VA/FHA loan and then not live in it. That is considered mortgage fraud.

You can and should purchase with VA loan and rent out a few rooms, or a whole unit if its a multi family. Live there until you PCS and repeat.

@Ian Hardy Purchase the property using a VA Loan.........Live in it for at least 12 months.....Simple....

Too many people going onto a public forum telling other people about ways to skirt around or sidestep or "have the intent to......", blah, blah, blah. 

Keep it simple, move into the place and live there for a year....yes you can househack while you are there at the property....the VA isn't going to forbid you to rent out any rooms. You can (and should) buy a duplex, triplex or 4 plex and rent out the other units. After living there for a year, see if you can refinance out of it and make it a conventional loan.....then repeat. If you can't refi out of it....then reach out to Navy Federal Credit Union and get a loan through them for zero down and no PMI. If you are active duty or a veteran then you can have a mortgage loan from this while you have a VA loan in place.

Eventually you will have enough equity to refi out of the VA loan and still have it be something without having to pay PMI. Same with the NFCU loan.

Repeat, repeat, repeat.

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