Va loan

[Yusef Laboo]

if you have a VA loan you're sitting on a gold mine and you didn't even know it

[Eboni Ayanna]

@Ryan Rex - I am prior service military with disability benefits as well. I've used my VA to purchase a property in Virginia in 2014. Now, I am closing on a 3-unit property in Chicago using my VA loan. Your VA loan can be reinstated. Here's why the VA loan is gold:

(1) VA loan limits were lifted Jan 1, 2020. There are no longer restrictions on the loan amount VA will approve. You could very well qualify and be approved for a $2M loan or more (I was approved in this range although I'm purchasing under that amount).

(2) There is no requirement to put money down with the VA loan, although the seller of the property could request an earnest money deposit of 1-3% of the selling price. This happened to me, and is understandable, because the seller would like some reassurance that you're serious about the purchase. I didn't put up a fight because I had the funds available and I didn't want the seller to accept another offer over mine.

(3) If you're using a VA loan you won't have to pay private mortgage insurance as part of the loan. Private mortgage insurance is required unless you're putting down 20% of the purchase price...with your VA loan this is not required.

(4) If you're a disabled veteran, depending on your percentage, you're probably exempt from property taxes; check with your city tax assessor. In my case, for Chicago, if you're 70% or more disabled by the VA you are exempt from property taxes. I really saved in this area because Chicago has some of the highest property taxes in the county (10-15k+ annually depending on where you live).

(5) You are eligible to buy up to 4 units with your VA loan, but one of the units must be used as your primary residence and has to be purchased in your name, not an LLC or Corp.

So, find a lender (I used New American Funding, Jon Ware), get pre-qualified, so you know what you price range works best with your current finances, find a duplex, triplex, or quad, live in one unit and collect rents on the others. And yes, you can purchase a 2,3,4-unit building that is 100% tenant occupied and cash flowing, but one of the tenants will have to move so you can live in the property.

Lastly, VA requires you to occupy the unit 60 days after closing on your loan.

While serving my country was not always the greatest of experiences, I'm so appreciative for this VA loan. It's gold! It's gold! It's gold! It can be done. Thank you for your service and good luck!