Contractors in Chicago + VA-Construction

Chicago, Illinois
Land & New Construction
4dFollow

Contractors in Chicago + VA-Construction

Dakota JamesPro Member
Member since 2023 · 2 posts · 1 vote

Hello, I am looking into building a 4 unit new construction with the VA loan ( IN CHICAGO). Has anyone done one on a multifamily? Pros and cons? Let me know vs just me just buying an existing 3-4 units with the VA loan.

1Reply
250 views

4 Replies

Jump to latestLatest
  • Lee Burns
    Investor · Chicago, IL · Member since 2018 · 328 posts · 157 votes
    4d

    I've been curious about VA home loans also. I did my digging a couple months back and was told that most lenders don't usually even do these because of the amount of time that it takes and the tire kickers that never follow through. I'll DM you to keep in touch

    0Reply
  • LaTarence Dunbar
    Lender · Washington DC · Member since 2026 · 74 posts · 19 votes
    4d
    Quote from @Dakota James:

    Hello, I am looking into building a 4 unit new construction with the VA loan ( IN CHICAGO). Has anyone done one on a multifamily? Pros and cons? Let me know vs just me just buying an existing 3-4 units with the VA loan.

    Hi Dakota, that's an interesting strategy. New construction versus purchasing an existing 3–4 unit property can look very different from a financing and execution standpoint. I'm a private lender, and I'd be glad to connect and learn more about your plans. Depending on the project and financing structure, there may be alternative funding options worth exploring alongside the VA route. Have you already secured a lot, or are you still evaluating your options?

    0Reply
  • Hossein Sharifi
    Technology · Member since 2023 · 79 posts · 32 votes
    3d

    Two things to price in. Few lenders will do a VA construction-to-perm loan, so line one up before you buy land. Also, 3-4 unit VA loans have to pass a self-sufficiency test: 75% of the projected rent has to cover the full PITI payment. Chicago taxes on new construction can sink that test. Run that math first. An existing 3-4 unit is usually the easier path.

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    2d

    One of my clients would be a great resource. Feel free to dm me and then I connect you two. He’s a Va and he did this with a few Properties. The Va loan benefit is incredible.

    [email protected]
    Brick House CPAs53 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free