Newb in the Boise, ID area

[Chris Robinson]

Hey guys,

My name is Chris and I currently live in Mountain Home, ID, about 40 minutes southeast of Boise. I haven't started any investments yet, but I would like to buy my first multi-family home within the next 1-2 years, possibly using a VA loan. I've definitely done some research, but I'm sure there's a lot more to learn, or even just things I'm overlooking. Any advice would be much appreciated!

I came across BP through some online research. Found a lot of informative forums, and really dig how helpful of a community it seems to be!

[Wil Andrew]

Welcome Chris,

I live in Caldwell Idaho about 30 minutes the opposite side of Boise from you.

As someone who has purchased a Multifamily using a VA loan, I can tell you it is possible. Honestly having purchased 3 other homes, (townhouse using a VA like loan but through a military bank, a condo using a VA loan, a streamlined Refi on the same condo, and a seller financed home) using a VA backed loan to purchase a multi really isn't any more painful than a single family (except the inspection and appraisal may cost a bit more). When I did my multi with the VA I did it through USAA. However, I do not know if they still do them. The trick is finding a lender or underwriter at a bank that is willing to do a multifamily as a residential. I only had to call 2 banks. Navy Federal Credit union and USAA. Navy federal at the time had some internal requirements from my understanding that prevented them lending on multi-families and this may have changed since then.

If you use a VA loan to purchase you have to INTEND to occupy the property. Also as of right now you can only purchase up to a 4 unit building using these programs. But, with the way the programs work (from my understanding) is there are some calculations that would allow you to purchase more than one property assuming that you have VA entitlement remaining.

The amount of entitlement for 2017 has just risen to $424,000 from $417,000 in the past few years.  For instance, If you purchase a property for $200 K  you would potentially have $224 K entitlement remaining of what is referred to as bonus entitlement to use towards the purchase of a future home. 

But, Be advised that there may be requirements for moving so far from your first multi to purchase another.

It is also a good a idea to have even a small down payment as it may reduce or remove the funding fee associated with a VA backed Loan. I dont remember exactly what it was but it was a relitively small amount. There also use to be (about 2-3 years ago) a higher funding fee associated with subsequent VA backed purchases.

All in all though, I dont know why more vets dont use this like this.  It is the government giving every veteran a chance to become truly wealthy without any real amount of money out of pocket.

I would do it again, but I dont think I can convince my wife of living in another attached home.

Please keep in mind that this is just my own meandering experience from what I can remember and I do not endorse or promote any company herein.