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Updated almost 11 years ago,
Have you ever used VA Financing to live in one unit and rent the others?
I always thought this was a great strategy that could work in many states depending on the price range but have you ever done this yourself and whats you're experience personally?
Advantages using VA financing:
- can use rental income when vacating your currently primary residence to purchase another primary home even with no documented equity requirement in your current residence (conventional requires 30% equity to do so, and FHA requires 25%)
- can use 100% of the rent minus the entire mortgage payment while FHA/Conv makes you discount your rents to 75% of the monthly gross minus entire mortgage payment with VA
- can be combined with mortgage credit certificates(MCC) depending on what your income limit is in your specific state/county and this can provide a dollar for dollar benefit for approx 20% of all the interest you pay per year.