VA Loan for Mixed-Use Property

[Jen Sprague]

Hello there!

My boyfriend is currently in a bit of a quagmire, and I’m hoping we can get some excellent advice here.

He has found a property that he absolutely wants to purchase. This is a mixed-use building with 3 residential units and 1 commercial unit. According to our understanding of the VA home loan guidelines, a property can be up to 4 units, and mix use is allowed so long as the property will be the buyer's primary residence and the the commercial use is subordinate to the residential use comprising no more than 25% of the property space.

My boyfriend has his certificate of eligibility for a VA home loan, and the building meets these requirements exactly. However, he has been turned by multiple lenders who are telling him that although the VA allows for circumstances such as these, most banks will not approve these kinds of loans.

That being said, "most" does not necessarily mean "all." He wants to fight for this property and secure it with the VA loan that he earned. Does anyone have any advice on finding a lender that would be willing to give him a VA loan for this property?

[Chris Mason]

Is it in contract? Most lenders will not spend a lot of time on 1 in 1000 longshots. Once it is in contract, it's no longer 1 in 1000. But most sellers and realtors also will not deal with 1 in 1000, meaning they will not accept your offer. Chicken and the egg.

A non-refundable earnest money deposit, or option purchase, might help you get it under contract.