Looking For A VA Loan To Purchase or Refinance Multi Unit Properties?
For eligible Veterans, getting approved for a multi-family 2-4 unit property is worth it. Your property becomes an investment property if you use your primary residence as a rental property to generate income. Often, this looks like a multi-unit property, where your property has multiple separate units that you rent. A VA loan for an investment property can help make the mortgage payment for you.
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If you’re looking for a VA loan to purchase or refinance Multi Unit Properties? Then keep reading.
How Does An Investment Property Loan With HomePromise Differ From Other Lenders?
There are some unique challenges in finding a lender willing to finance a multi-family investment property VA loan. The first challenge Veterans may face is that some VA lenders only finance single-family homes. Also, many lenders will only finance investment properties if borrowers are able to make at least a 20% down payment on the property or more. The Department of Veterans Affairs permits financing on properties with up to four units that are intended to create income. But a Veteran must live in the property as his or her primary residence.
Another challenge is that many VA lenders have strict guidelines for calculating the income from rented units. This situation usually results in a denial or the lender forces the Veteran to receive a smaller loan amount.
Looking For A VA Loan To Purchase or Refinance Multi Unit Properties With HomePromise Is Easy!
The VA government guidelines for calculating income earned from rental units are generous. With HomePromise, we make it easier for Veterans and active military members to qualify.
The secret is finding a lender, like HomePromise, who uses just the VA guidelines to approve VA loans. Other lenders use their own guidelines on top of the VA guidelines, which means you have to satisfy government agency requirements and the requirements of your lender! Why would a lender do this? Because they are afraid that making loans strictly to the VA guidelines are too risky.. But HomePromise is willing to take risk of these kinds of loans. With us, you don’t have to worry about strict guidelines that block you from accessing your VA Home Loan benefits. Plus, we’ll help you get great mortgage rates. We are VA mortgage experts, so you can use our website as your personal mortgage research center.
Are Multi-Family Homes A Good Investment?
The ability to earn income from the home you call your principal residence is a huge benefit for a multifamily home used as an investment property. That investment is made even better when you can use your VA loan to purchase these types of properties with no down payment. That means you can earn income on an investment in a multifamily home for just the amount of your closing costs – and those can often be paid by the seller!
If you were to buy real estate as an investment without the benefit of a VA loan you would usually have to make a down payment of 20% to 25% or more. This dramatically affects the return on your investment which is the key metric for evaluating whether an investment is a good use of your money. Investment Property VA loans are a great investment for veterans interested in earning income from real estate.
Is A Multifamily Property Considered An Investment Property?
It is an investment property on your tax return so in that sense it is. But since the home is your primary residence it’s not just an investment property, it is the place you call home. In other words, it is both your primary residence and an investment property – a great combination.
What Are The VA Guidelines For A 2-4 Unit Multifamily Property?
According to the Department of Veterans Affairs, the basic requirements are that you need to be a Veteran and have enough income to qualify for the mortgage loan. A review of your credit history will also help determine that you meet the VA credit history guidelines.
Some lenders have guidelines that are stricter than the actual VA guidelines so it’s important to find a lender who will accept a credit history that had some challenges in the past. Another part of the guidelines for VA investment property loans is to use the income from rented units to the fullest extent possible.
How Do I Qualify For a 2-4 Unit Multifamily Property?
The key to qualifying for a multifamily VA loan as an investment property is to find a lender who will allow you to use the maximum amount of income from the rental units on your property. Some lenders will only allow you to use a tiny fraction of the rental income.
HomePromise will qualify you based on the maximum amount of income from the investment property portion of your home based on the VA guidelines. If using your property to generate rental income, the total number of rental units permitted is 3. This means you can buy a maximum of a 4-unit home with one unit as your primary residence where you live. This can make a huge difference in being able to qualify for a multi-family investment property VA loan.
Other lenders will qualify you using a tiny amount of your rental income. Not us. We will let you use most of the income you are receiving from your leases without any deduction for expenses from your rental units!
Why Choose HomePromise?
Looking For A VA Loan To Purchase or Refinance Multi Unit Properties? Then call us now: 800-720-0250 to speak with one of our VA loan experts.
Some lenders struggle with VA multifamily 2-4 unit investment properties because they require comparable sales on the appraisal that exactly match the number of units of the property. This means you need nearby properties that are being used for the same purpose, and in the case of a multiunit property, you need comparable sales with the same number of units. In other words, in their rules, a four-unit property would not compare well with a two-unit property on an appraisal. If you’re looking for a VA Loan To Purchase or Refinance Multi Unit Properties that’s not a problem with HomePromise! We allow the VA appraiser for your home to use comparable sales of 2, 3, or 4 unit homes regardless of how many units are on your property. Contact us now 800-720-0250 to find out more about mortgage rates, your VA loan limits, how to apply quickly for a home purchase or refinance and more.