Low or no down pmt for VA mortgage.

[Kathy Mckee]

I am looking to purchase a 4 unit apartment complex and living in one unit. I can get a VA loan with 0% down, which does not increase the interest rate. I am use to thinking that I should put a good down payment down. However, I am wondering if I should go with the 0% down and just have either a higher monthly payment or add more years to the mortgage and save my cash? I do own two other duplexes with conventional mortgages and pay more each month on the principal to pay off earlier. Any advice would be appreciated!

[David Faulkner]

The issue I see with going the VA route is in the type of property you could get. My understanding is that the VA has very stringent standards and inspections, which would make it difficult to impossible to purchase the type of distressed property where you could do some forced appreciation value add. This leaves you with more turnkey rentals at retail price ... if that is what you want to buy anyhow, then no problem, but if you are looking at getting a distressed property for under market value with a VA loan, that could be a problem, unless you have an evil genius mortgage broker like Chris M. that could figure out how to make the darn thing close escrow :)