Will i be able to qualify for some of these properties?

Question

Hey everyone I'm in the military and ive been saving up money to get at minimum 3 - 4 unit property. I have the va loan entitlement and want to live in one of the units and rent the other 2-3 out. I have a 750 credit score and probably will go up higher once i pay a couple things off. I'm PCSing in about a year and hopefully will get stationed alongside the east coast. By the time i move i should have around 25k saved up. Would having the VA loan, 750 credit score with lots of history, and 25k saved up give me a good chance at getting the property? I was looking in tampa florida at properties and found some good deals just to get an idea and i saw a couple of properties listed for around 600-700k with 3-4 units and they look good with some people already renting.

Would having the VA loan, 750 credit score with lots of history, and 25k saved up give me a good chance at getting the any of these properties? Would love any additional advice. Thanks!

John K. · Answer

Hi Marcos,

You've got a great plan!

The purchase price that you'll able to get 100% funding for depends on your VA entitlement. Have you gotten a certificate of entitlement? That's what you'll need to request to start calculating loan amounts. The 25k should cover your closing costs, but you'll likely have to depend on the entitlement to cover the full loan cost at 0% down. Your possible loan amount will also be limited by your income, as DTI must stay under 50%.

Since you mentioned multifamily in Tampa, I would just add to be cautious when looking for properties as in that area there are so many that are done without permits, and VA is strict with each unit having it's own water and electric meters. Properties with an unpermitted ADU/2nd unit often look like the best deals, but it's because the 2nd/3rd unit was converted illegally. You can verify it's legal by checking the county property appraiser's website and looking at the number of units listed--I can walk you through it if you'd like.

The best thing you can do for the moment is to keep taking care of your already-great credit score--that will give you a lot of options when the time comes. Anything you can do to increase your income will also help out a lot. Feel free to reach out if you have any questions!