First-Time Buyer Using VA Loan in Los Angeles — Open to Advice & House Hacking

[Anthony Jimenez]

Hey everyone,

I’m active duty Army and recently got pre-approved for a VA home loan — $625K for a single-family and $775K for a multi-family. I’m based in Los Angeles and planning to buy my first property here. I know the market is expensive, but I’m motivated and want to use this opportunity wisely.

I’m leaning toward a multi-family property so I can house hack, but I’m open to creative strategies and advice. My goal is to start building a portfolio that gives me long-term financial freedom.

Has anyone used a VA loan to house hack in L.A.? Any tips on finding good deals, negotiating, or structuring it right? I’m a new Realtor as well, so I’ve been trying to learn as much as possible on the ground.

Appreciate any guidance!

[Jason Wray]

Anthony,

Yes, and my advice is to make sure you get more than one quote when it comes to a VA Home loan and using your entitlement. I have seen many lenders not run the numbers correctly and it ends up hurting your Maximum loan amount you qualify for and that never a good start.

You also want to make sure you are working with a seasoned real estate agent who specializes in VA home loans. Biggest reason is some agents do not like FHA and VA out of simple ignorance and think its a hard loan to get approved. I have seen many realtors decline the borrower in certain markets especially in LA because they prefer to work with only conventional or all cash buyers.

There is also a more aggressive approach to take as the agent because a Veteran should not be paying closing costs and an agent who works with Veteran can get you "Seller Concession" in some cases up to 4% which can cover all closing costs and a rate buy down! Most lenders will not offer this type of help or even suggest these things and simply run a generic "Pre-approval" and email you a letter.

Instead with VA 100% loans it is wise to have the bank/lender runs an "ELA" Express Loan approval which is an actual underwritten guarantee to close in (15 days) or less. This enhances the Veterans bid and can help your offer get approved even over a cash buyer since you have a quicker guarantee to close in only 15 days.

If you ever have any questions about the VA process or anything above feel free to give me a call. I enjoy helping BP Members and Veterans avoid lost time and money and getting it done right on the first one is crucial.