Multi-unit purchasing with a VA loan: A complete guide

Steep home prices and mortgage rates are pushing veterans to look for smarter ways to buy. One option is purchasing a two- to four-unit property with a VA loan with the intention to live in one unit and rent out the other(s) to help cover the mortgage.

The loan, backed by the U.S. Department of Veterans Affairs, makes this possible with as little as no money down if you qualify and plan to live in one of the units.

The rules are more involved than a single-family home purchase, though. Lenders look at how much rental income counts toward your application, whether you plan to live there full time and what the property must meet to qualify.

Here’s what veterans and eligible buyers should know before using a VA loan to buy a multi-unit property.

A multi-unit property is a single building with two or more separate living spaces, each with its own entrance, kitchen and bathroom. One owner holds the deed, but multiple households can live there at once.

When using a VA loan, eligible borrowers may purchase a property with up to four units, provided they occupy one of the units as their primary residence.

Yes, you can…

Original source: https://www.usatoday.com/money/