VA Loan - Finance Options

[Joe Cronin]

Hello All: I'm interested in purchasing my first multi-family property in the Boston area using VA financing. While I'm aware of the basic rules/parameters in place for these loans (i.e 4-unit max, jumbo loan ceiling of $424,000), I'm curious if an option exists to secure a second mortgage to cover costs beyond the max loan amount. Does anyone on BP have experience/success in executing such a deal? If so, what hurdles did you come across during that process? Is there anything that I should avoid? In my case, I'm looking to obtain a basic loan in an amount between $475,000 and 500,000. This is clearly in excess of the VA ceiling, so a second loan will be necessary. Also, there are some maintenance costs, so I'm considering trying to build in a 203K loan or the equivalent through the second mortgage. The total finance-related costs should be roughly $525,000. The properties that I'm looking at are 2 and 3-units, so 1-2 of those apartments will be rented out. Again, the property will be located just outside of Boston, so it should command solid rents (i.e. $1800-$2200/month, per unit). As required by the VA, it will be owner occupied, so I'll live in the other unit. Thanks in advance for your advice and counsel!