{"id":329868,"date":"2024-11-11T04:03:46","date_gmt":"2024-11-11T09:03:46","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=329868"},"modified":"2025-02-11T05:18:20","modified_gmt":"2025-02-11T10:18:20","slug":"va-loan-for-investment-property","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/va-loan-for-investment-property\/","title":{"rendered":"How to Use a VA Loan For an Investment Property"},"content":{"rendered":"\n<p>In 2023, the VA issued <a href=\"https:\/\/www.benefits.va.gov\/HOMELOANS\/lender_state_volume.asp\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">400,692<\/a> loans nationwide. They are the go-to choice for veterans when buying a primary home. VA loans offer benefits like no down payment and competitive interest rates. Despite being designed for homes, you can still generate rental income or get returns on investment.<\/p>\n\n\n\n<p>Therefore, get a mortgage preapproval to determine your loan amount. <\/p>\n\n\n\n<div class=\"block-takeaways\" style=\"margin-top:20px !important\"><p class=\"topHead\"><\/p><p class=\"headKeytake\">\ud83d\udcc9<b> VA loan for investment property \n<\/b><\/p>\n<ul>\n<li>You can rent out your primary home before 12 months if you get transferred elsewhere.\n<\/li>\n<li>VA streamline refinance releases you from VA occupancy requirements. This way, you&#8217;ll be able to rent out your first residence and buy a second primary residence.\n<\/li>\n<li>You can refinance your VA loan into conventional loan to eliminate the occupancy requirements.\n<\/li><\/ul> \n<\/div>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"va-loan-investment-property\"><strong>Can You Use a VA Loan for an Investment Property?<\/strong><\/h2>\n\n\n\n<p>No. You cannot use a VA loan to purchase an investment property. They are mainly used to assist veterans, active-duty service members, and some surviving spouses to purchase a primary residence.&nbsp;<\/p>\n\n\n\n<p>However, there are ways to use a VA loan for buying an investment property.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"va-loans-for-investment-property\"><strong>Ways to Purchase an Investment Property with a VA Loan<\/strong><\/h2>\n\n\n\n<p>As you cannot purchase an investment property directly using a VA loan, you can consider your primary residence as your investment property. And use the VA loan to purchase the primary residence.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s how you can use a VA loan for investment property:<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"va-loan-rental-property\"><strong>1. Rent Out Extra Space in Your Home <\/strong><\/h3>\n\n\n\n<p>Although you cannot directly use a VA loan for rental property, you can rent out an extra room that you might have. This can be a good way to earn passive income. Moreover, you can use this money toward the monthly payments on your VA loan.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"can-i-buy-a-multifamily-home-with-a-va-loan\"><strong>2. Buy a Multi-unit Property<\/strong><\/h3>\n\n\n\n<p>You can buy a multi-unit property of up to 4 units through your VA loan. You must occupy one of the four units as your primary residence to fulfill the <a href=\"https:\/\/www.benefits.va.gov\/WARMS\/docs\/admin26\/handbook\/ChapterLendersHanbookChapter3.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">VA loan occupancy requirements<\/a> and you can rent out the non-occupied units.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"va-loan-for-second-home\"><strong>3. Buy A New Home With Your VA Entitlements <\/strong><\/h3>\n\n\n\n<p>The Department of Veterans Affairs offers some degree of guarantee to each borrower in case they default. You can use this entitlement to buy a <a href=\"https:\/\/www.houzeo.com\/blog\/va-loan-for-second-home\/\" target=\"_blank\" rel=\"noreferrer noopener\">second home<\/a>. VA entitlement includes types, which are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Basic Entitlement:<\/strong> All veterans receive a basic entitlement of $36,000. The VA will cover $36,000 of their loan if they default on mortgage payments for up to $144,000.<\/li><li><strong>Bonus Entitlement:<\/strong> Apart from basic entitlement, the VA also guarantees 25% of the loans that exceed $144,000. It allows you to buy a home at a higher price.<\/li><\/ul>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"va-loans-for-investment-properties\"><strong>4. Rent Your Home After 12 Months <\/strong><\/h3>\n\n\n\n<p>You can rent out your primary residence if you&#8217;ve lived in it for at least 12 months. Moreover, you can rent it out if you&#8217;re still in service and have been transferred to a new location before 12 months. In this case, the VA does not require the new tenant to be a veteran.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"va-home-loan-rental-property\"><strong>5. Refinance VA Loan Into a Conventional Loan <\/strong><\/h3>\n\n\n\n<p>Conventional mortgages have fewer restrictions on the <a href=\"https:\/\/www.houzeo.com\/blog\/types-of-houses\/#:~:text=Find%20Your%20New%20Home%20With%20Houzeo&amp;text=Find%20condos%2C%20townhouses%2C%20co%2D,homes%20for%20sale%20on%20Houzeo.\" target=\"_blank\" rel=\"noreferrer noopener\">type of property<\/a>. So you can finance a rental property with one even though VA loans have more flexible qualifying requirements. That&#8217;s another way to buy an investment property through VA loans.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"va-investment-property-loan\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p>VA loans prove to be the easiest way to finance a primary home purchase for veterans. To buy an investment property through a VA loan, you must treat it as your primary residence.<\/p>\n\n\n\n<p>However, you can rent out extra spaces or units in that home and earn rental income. In addition, you must adhere to all the occupancy and property requirements to purchase with a VA loan.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\"><strong>Find Your New Home With Houzeo<\/strong><\/h2>\n\n\n\n<p>With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of <a href=\"https:\/\/www.houzeo.com\/homes-for-sale\" target=\"_blank\" rel=\"noreferrer noopener\">homes for sale<\/a> on Houzeo.<\/p>\n\n\n\n<p class=\"margin-top-15\"><strong>\u00bb Need More Clarity?&nbsp;<\/strong>Read these exclusive&nbsp;<a href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why the platform is the best in America\u2019s competitive housing market.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"faq\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan you use a VA loan to buy a duplex?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Yes, you can buy duplexes, triplexes, and <a href=\"#can-i-buy-a-multifamily-home-with-a-va-loan\">quadplexes<\/a> through a VA loan.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan you use a VA loan for rental property?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>No, you cannot directly buy a rental property. However, you can <a href=\"#va-loan-rental-property\">rent out<\/a> extra space or units in your primary home to earn passive income.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan I use my VA home loan overseas?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>No, you cannot use VA loans to <a href=\"https:\/\/www.houzeo.com\/blog\/how-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">purchase a property<\/a> in another country. The use of VA loans is limited to the US subcontinent.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">VA loans can lower the cost of homes for eligible military personnel, but can you use a VA loan for a second or investment property? Find...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">4 mins read<\/span><span class=\"date\">Nov 11, 2024<\/span><\/div>","protected":false},"author":102,"featured_media":428148,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46225,46241,46295],"tags":[31970,31968,31967,31966,31965],"class_list":["post-329868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer","category-mortgage-types","category-va","tag-can-i-rent-out-my-va-loan-home","tag-can-you-use-a-va-loan-for-a-rental-property","tag-investment-property-loans-for-veterans","tag-va-investment-property-guidelines","tag-va-loan-for-commercial-property"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Use a VA Loan For an Investment Property<\/title>\n<meta name=\"description\" content=\"VA loans can lower the cost of homes for eligible military personnel, but can you use a VA loan for a second or investment property? 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