Using VA Loans to Purchase Multi-Family Homes

If you are interested in enhancing your financial future, owning rental properties is a great choice. There are many options for financing, including VA loans. While they are usually used for single-family houses, these loans can actually be used to purchase a multi-unit home, allowing veterans to build their portfolio and purchase a home with one loan.

VA Loans for Multi-Family Homes

Why Choose a Multi-Family Home?

Before you look into purchasing options for a multi-family home, you have to understand whether or not this is the right choice for you and your financial future. While multi-unit dwellings have obvious advantages, they’re not for everyone, so you need to weigh all the factors and talk with a financial and mortgage professional before making a decision.

One of the top advantages of buying a multi-family home is that you get to build your investment-property portfolio quickly, with numerous properties in one purchase. Let’s say you want to buy a single-family home as a rental property. When the deal is complete, you now have one unit to rent. However, with a single purchase of a four-unit property, you now have four available units under your portfolio. On a per-unit basis, you may not get as much income each month compared to a single home, but these four units, in total, will likely bring in more than a single home.

The other advantage is less risk compared to a single-family home. If your single-unit rental is vacant, you are not receiving an income for the entire property. However, if one unit in a four-unit property is empty, but the other three are filled, you still have 75% of the income coming to your house. You will, of course, have to work a little harder to fill all four units, but you will be less likely to have a property that sits completely empty.

There is also the fact that four units are connected on one property, which mean efficiency and grouping. You’ll only need one loan to purchase the property and you’ll only make one payment on the mortgage. You’ll only need one insurance policy, you’ll only need one appraisal when you decide to sell. Grouping everything together can make ownership easier and less time consuming.

Options Available from San Diego Purchase Loans

If you decide that owning a multi-unit property is right for you, you’ll now need to search for the right loan that allows you to purchase a high-quality property. Fortunately, we offer many options on multi-unit properties, including VA loans for multi-family dwellings.

We now offer high-balance loans with zero down in San Diego County. These loans are offered using VA eligibility requirements on a multi-family unit with various loan limits depending on the amount of units on the property.

If you are purchasing a two-unit property, you can borrow up to $831,800 in a VA loan. For three-unit properties, the price is even higher, reaching $1,005,450. However, if you are interested in a four-unit property, you can borrow as much as $1,249,550 in a VA-backed loan. With these loans, you should be able to purchase a top-quality unit and expand your portfolio quickly.

Are You VA Eligible?

When you think of VA loans, you likely assume they are only for veterans. However, these loans are also available for spouses and family of current and former service personnel. While it’s best to visit the VA Home Loans page to fully understand eligibility, we’d like to give you a brief rundown of the most common eligibility requirements.

VA loans allow veterans and their spouses to purchase multi-family homes.

If you served in the military during wartime, which includes World War II, Korean War, and the Vietnam War, the service requirements are at least 90 days active duty with anything other than a dishonorable discharge. If your service was less than 90 days of active duty, you must have been discharged for a service-connected disability.

If you are a Gulf-War era veteran, the service requirements are 24 months of continuous active duty, with at least 90 days of completed full term that you were ordered to active duty. You can have at least 90 days active duty and have been discharged for hardship, early out, convenience of the Government, reduction in force, or if a condition interfered with duty. If you served less than 90 days, the discharge would have to be connected to a disability.

If you served during peacetime, the requirements are slightly different. If you served at least 181 days of continuous active duty without a dishonorable discharge, you will be eligible for VA loans. If you have less than the 181 days, the discharge must have been connected to a service disability.

As we said, servicemen and servicewomen are not the only ones eligible for VA loans. You may be eligible if you are an unemployed spouse of a veteran who died while in the service of our country or because of a service-connected disability. If you are the spouse of someone missing in action or taken prisoner, you are eligible for the loan. Un-remarried spouses of a veteran who died in service remain eligible for the loans, but if you do remarry, you will usually loose eligibility. The main exception is people who are older than 57. If you remain un-remarried until 57, you retain eligibility for VA loans.

Other eligible beneficiaries include U.S. citizens who served in the armed forces of a government allied with the U.S. in World War II, and individuals with service as members of certain organizations, which include Public Health Service officers and cadets at the United States academies.

To verify your eligibility, you’ll need to complete a Certificate of Eligibility and submit it either online or through the mail.

Get the Loan Benefits You Have Earned

As a servicemember of the spouse of a veteran, you have earned to right to VA benefits, including VA loans. Let us help you navigate the complexities of the VA system and ensure you can take advantage of VA loans for multi-unit properties.

We would be proud to help you find the right VA loan to enhance your financial future!

Testimonials

“Hey Chad, Just wanted to send a quick note to Thank You for all your work and effort to get this escrow closed. It was a pleasure to work with someone as professional as yourself. If I have a client that ever needs a lender you will definitely be someone that I  would recommend.”

Incredible Turnaround and Stellar Customer Service. Chad and his team helped us get into our first home here in San Diego. When we first started the process we were skeptical it would even be worth applying. But Chad and his team walked us through the whole lending process with integrity and know how that surpassed our expectations. After helping us to pull together our pre-qualification, he and his team stayed at the ready. Before we even walked up to a home we were seriously interested in he had the data we needed over to us and our realtor. After finding the home we wanted to place a bid on, we were able to place a bid with a matter of a few hours. Then, after having our offer accepted, he had our loan package completed and the keys in our hands in under a month — I am pretty sure it was less than. Like I said, incredibly fast and professional turnaround. if you are looking for a motivated lender who can walk you though every detail and have your back every step of the way, Chad and his team at HomePoint Financial is your best decision. Recommend them highly!”

Chad and his team were Awesome to work with! I was referred to Chad by a good friend of mine. I was very impressed with the professionalism and quick response times from Chad Baker & his team during the entire process. I screened over 3 lenders before selecting the Chad Baker Team and I’m confident I made the right choice. It’s obvious that customer service is their #1 priority and it shows. I highly recommend Chad if you have lending needs. ”

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I hope you enjoyed reading this article. It's my goal to keep you updated with the latest real estate mortgage news. I'm proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for RPM Mortgage. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2016. Got a question for Chad? Call (858) 353-8331 or submit your question online