Can You Use a VA Loan to Buy an Investment Property?

Published On: April 8th, 2022

If you’re like many people come on you qualify for a VA loan – but can you use it to buy an investment property? This guide explains.

Can You Use a VA Loan to Buy an Investment Property?

It is possible to purchase an investment property using your VA home loan benefit. However, there are a few caveats to that:

You must intend to live in part of the property full-time, as your primary residence
The property can’t have more than four units
You can’t move out within the first three years

Here’s a closer look at each.

#1. You Must Intend to Live in Part of the Property Full-Time, as Your Primary Residence

One of the conditions of obtaining a VA loan is that you will live in the property full time, and that it will serve as your primary residence. You cannot use a VA loan to purchase a property that you don’t intend to live in; the government won’t back that type of deal for you.

However, you can purchase a multi-unit property with your VA loan benefit if you intend to live in one of the units and rent out the others.

#2. The Property Can’t Have More Than Four Units

The property you purchase with your VA loan benefit cannot have more than four units. That means you can buy a duplex, triplex or fourplex – but nothing with more units than those. And remember, you have to live in one of the units as your primary residence in order to qualify for this type of loan.

#3. You Can’t Move Out Within the First Three Years

When you purchase an investment property (or any other property) with your VA loan benefit, the government expects you to live in it for at least three years. That means one of the units must be your primary residence for at least 36 months before you move out and into another home.

There’s one exception: If you sell the property and satisfy the VA loan in full, you can move out before three years have passed.

Why Would Someone Use a VA Loan to Buy an Investment Property?

Many experts believe that the best way to begin investing in real estate is to purchase a multi unit property and live in one of the units while renting out the others. By doing so, you could even get your entire mortgage payment covered by other people; That frees you from having to come up with a mortgage payment every month.

If you qualify for a VA loan benefit, it may be a smart idea to put it toward a multi-unit property. The VA loan benefit program allows you to purchase a property with up to four units, which means you could collect rent from three tenants while living in one of the units yourself. Often, duplexes, triplexes and fourplexes are comparable in price to single family homes; that means you may be able to make money without spending more than you ordinarily would.

Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?

If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.

If you’re also looking for a new multi-family property for sale or another type of home, check out our: