Looking for multifamily in Denver, Colorado

[James Jones]

I currently live in Atlanta, GA and will be moving to Denver, Colorado within the next few months. I am interested in using my VA loan to buy a 4 unit multifamily property. I am working with a broker who recently informed me that sellers (single/multifamily) shy away from VA loans. Has anybody ran into an issue utilizing their VA loan to purchase property in Denver or any other cities in Colorado?

[Seth Wilcock]

Hi @James Jones - this is a great question. Sometimes, sellers can shy away from government financing like FHA, VA, or USDA since there are slightly stricter guidelines and requirements on the appraisal component. That being said, I have several clients under contract with VA financing right now. It just depends on the property and what the seller would be willing to accept. In fact, I just had a client close on a Quad with VA financing this past summer.

Also, I don't know of any other loan program that will allow you to purchase a multi-family home with 0% down and no mortgage insurance.  

Lastly, when you're looking at a quad, chances are you'll be looking at a different type of buyer pool from a competition perspective. The blanket statement that sellers don't want to entertain a VA offer will likely be more applicable to single family homes, condos, and townhomes, not multi-family. There is still fierce competition in the multi-family segment, but I would argue that it is not as competitive as 1 unit homes since there are more first time home buyers and folks looking to start a family in the 1-unit home sector. The only competition you'll likely find in multi-family will be other real estate investors and house-hackers, which would be a smaller audience.

Don't get discouraged and don't let a broker tell you that. You can still get a VA offer accepted in this market. Get a firm pre-approval letter from a quality lender with a good reputation in the community and an agent that knows how to write competitive offers and you'll be fine.