Using VA Home Loan for first property

[Daniel Thomas]

I plan on using a VA Home Loan to purchas a duplex in my local area that I will then move myself, wife and two kids into. I dont have a ton saved up (we are aggressively paying down debt and on a budget) so I wanted to use this method to acquire my first rental property. I know that we will have to live there for a year before refinancing out and moving opening up the unit we occupied to renters.

My question/dilemma: When I do find a duplex it will almost certainly be occupied (hurray super tight Omaha market) but I will need to occupy it per my loan. How does that get sorted? If the tenants are in a lease I have to honor it till it ends right? But if both units are in a lease than how do i occupy the property fulfilling the requirement of the VA? I would LOVE some guidance on this as it is extremely likely to happen give Omaha's tight market/rental situation. Thanks!

[Mike Cumbie]

Hi @Daniel Thomas,

Make it a condition of the sale. One unit to be vacant at closing to satisfy the buyers VA owner occupant requirement. They can buy out the tenant or issue the notices. Depending on how their leases are laid out.

It's common. You shouldn't have too many issues.

Good Luck!