Can I Buy Multifamily with a VA Loan?

Yes it is absolutely possible to buy a multifamily building with a VA loan. There are however limitations, but for our veterans this is one heck of a program! It’s the ultimate real estate dream. Put 0% down on your mortgage, acquire an investment property, live in one of the units and have the rents cover all expenses. Live for free or cash flow with little or no money down! What a great way to reward those who serve our country and that’s why I want to spread the word. This can and should be done by any veteran who is looking to make a solid investment and isn’t afraid to manage a few tenants when they return from service. Here are some things to consider when buying multifamily with a VA loan.

Basic Facts and Limitations:

• Eligibility – See Government website for exact details
• VA Loan Limits Cook County, IL – Up to $417,000. After $417,000, the amount depends on an equation. See more here.
• Down Payment – 0% down up to $417,000. See table for details.
• Closing Costs – Regular closing costs will be paid by buyer but seller can credit them at closing.
• Funding Fee – There are fees to fund the loan. See chart for details.
• Private Mortgage Insurance – Unlike the FHA program, there is no PMI!
• Competition – Sellers like high down payments. Cash offers beat any financed offer, so in a competitive market, VA loan offers may get beat out by conventional or cash offers.
• Owner Occupant – Must occupy one of the units to qualify.
• Appraisal – There is still an appraisal and it’s more in-depth than a conventional appraisal. If the property is in disrepair, or needs significant repairs you may have issues in a VA appraisal. In general, it needs to be “move-in ready.” Here is a sample of what they look for: VA Appraisal

Buying multifamily with a VA Loan is a great idea and a wonderful opportunity for those who have served our country. It sounds too good to be true but it isn’t. I have worked with veterans to achieve their investment goals using this program and you can do it too.

Learn more at my website www.chicagoREinvestment.com.