House Hacking with VA Loan

[Shirley Layer]

Hey BP community! 

I'm just getting started in my investing journey and I'm really liking the house-hacking concept. I currently live in the Clarksville, TN area and I'm actively looking for properties but I'd love some advice on strategy. 

I recently graduated with a degree in Animation + VFX so for the last 2 years' tax returns I haven't had much income. Plus, I'm self-employed so I won't have any W-2 info. I was looking to use my VA loan to purchase a 2-4 multi-family unit to take advantage of the 0 down payment but I'm not sure if my current income qualifies (waiting to hear back from my lender). I'm also open to getting creative and coming up with a down payment using a DSCR loan or something else. I have good credit and about 5k in crypto and other investments. I'm also learning to trade stocks so if I need a down payment, I could come up with it.

Currently, I live with my parents paying $380 in rent but I would prefer to pay a mortgage and get some cash flow going. What would you do? Should I increase my income and use the VA loan or should I come up with a down payment and use something like a DSCR loan?

Thanks in advance! :D

[Wale Lawal]

@Shirley Layer

A number of variables, such as your tastes, long-term objectives, and financial status, will influence your choice. The following factors should be taken into account for each choice:

1. Taking out a VA loan, which offers the these benefits: no funding fee, no private mortgage insurance (PMI), lower interest rates, and zero down payment, among others.

2. Making use of a DSCR loan, which offers the these benefits: interest rates, down payment, potential cash flow, etc.

Create a thorough financial plan that accounts for probable market swings, property management concerns, and emergency funds. The choice between a DSCR loan and a VA loan ultimately comes down to your individual needs and objectives. To receive individualized guidance based on your financial circumstances and goals, it might be helpful to speak with a financial counsellor or mortgage specialist.

All the best!