How Does A VA Loan Multifamily Home Loan With Us 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.
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 An 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.
I just want to thank you very much for your work to help us refinance our loans. I know you had to do so much work for us and we really appreciate it. If I know anyone who wants to buy a home or refinance I will do my best to refer you to them. Again, thank you very much.
This company out did themselves in my expectations. They were not pushy; they waited on me and kept contact with me even when I wasn’t sure if I was going to be able to refinance. I had a wonderful experience and highly recommend them for your next mortgage needs!
My mother recently had a refinance with HomePromise. The process was easy for her (and I) to follow. The loan representative was very helpful and responsive for the entire process and explained everything. I would definitely recommend this company.
I am a Veteran and they helped me understand the best options with my VA loan. They were great all through the process. I will definitely be telling others about Home Promise.