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Looking For A VA Loan To Purchase or Refinance A Multifamily Property?

For eligible Veterans, getting approved for a VA loan multifamily 2-4 unit property is worth it. By turning your primary residence into a rental property to generate income, a multi-family VA loan can help make the mortgage payment for you.

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How Does A Multifamily Home Loan With HomePromise Differ From Other Lenders?

There are some unique challenges in finding a lender willing to finance a VA loan multifamily home. The first challenge Veterans may face is that most VA lenders only finance single-family homes. The Department of Veterans Affairs permits financing on properties with up to four units. But a Veteran must occupy one unit as his or her primary residence. 

 

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Another challenge is that many 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.

HomePromise Makes It Easy For Veterans

The VA 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, making it hard to qualify. With us, you don’t have to worry about strict guidelines that block you from accessing your VA Home Loan benefits.

Are VA Multifamily Homes A Good Investment?

The ability to earn income from the home you call your principal residence is a huge benefit for a multi-family home.  That investment is made even better when you can use your VA benefits to purchase a multi-family home with no down payment. That means you can earn income on an investment in a multi-family 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. Multi-family VA loans are a great investment for veterans interested in earning income from real estate.

Is A Multi-Family Property Considered An Investment Property?

Yes and no. 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 Multi Unit Properties?

According to the Dept. of Veterans Affairs, the basic requirements are that you need to be a Veteran and have enough income to qualify for the 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 more strict 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 multi-family loans is to use the income from rented units to the fullest extent possible.

How Do I Qualify On A VA Loan For Investment 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. 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 rented units based on the VA guidelines. The total number of rental units permitted is 3. This means you can buy a maximum of a 4-unit home. This can make a huge difference in being able to qualify for a multi-family 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?

Most lenders struggle with multifamily 2-4 unit properties because they require comparable sales on the appraisal that match 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. That’s not a problem with HomePromise! We allow the 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. 

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VA Loan Program & Refinancing Experts

The VA Home Loan benefit is the best mortgage choice for military members, Veterans, and their surviving spouses. For almost every Veteran, it is a better choice than a Conventional, FHA, or USDA loan.  Best known as a no-money-down loan, the VA home loan benefit provides a low-fee option for military members, Veterans, and surviving spouses meeting the eligibility requirements set in place by the Veterans Administration.

VA Loan & Mortgage Refinancing Experts!

Owning a home lies at the heart of the American dream. A home is the foundation for financial security for many Veterans and active service members.  At HomePromise, we understand the borrowing process can be discouraging. We want to change that. Trust the home loan experts and creative financing team at HomePromise.

We understand that there are many different types of loans, and many different types of homeowners. With us, your situation is handled by people, not computers.

That’s why we want you to talk with one of our team members. Applying with us is always 100% free – no risk, no cost, no obligation to you. That is the HomePromise Way.