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VA Mortgage Benefits for income earning property.


VA Loan Requirements for Multi-Family Units from VA

Below is a super article from the team at VA You can follow the link at the bottom of the article fro more information.

VA Loan Requirements for Multi-Family Units


2 min read

Financing with a VA loan covers more property types than homes and condominiums. Qualified veterans and service members can use a VA loan to purchase a property that has up to four one-family units.

The occupancy requirements for these types of properties are the same as with single-family units, and a borrower must certify their intent to live in one of the units as the primary residence.

Minimum property requirements (MPRs) for multi-unit VA loan purchases are different because the property has more living spaces to examine. The VA MPRs change for buildings with more than one unit simply because there’s more housing.

Each individual unit on the property must be private and accessible. There are exceptions to this rule, mostly related to setting up utilities and ensuring access to them for maintenance and repairs.

Although the VA lender’s guide states that every living unit must have independent utility services, shared water, sewer, gas and electricity lines, and water connections are permitted, so long as:

  • There are separate service shut-offs for each unit;

  • Easements or covenants protect water connections, and the VA approves of a maintenance agreement; and

  • Legal provisions ensure and protect access to utilities for repairs, even if passing through other living spaces.

Some shared spaces on the property are permitted. The building can have a common facility for laundry or storage. Heating equipment for all units can be co-located in a single space. But when it comes to the individual privacy of each unit, VA rules require separate and self-contained spaces for each living space.

VA Loan Income Qualifications and Multi-unit Properties

Purchasing a multi-unit property with a VA loan may sound appealing to borrowers who see it as a means to increasing their income by renting the other units. However, lenders won’t blindly count potential income from tenants’ rent when calculating DTI and other qualifying and affordability ratios.

Lenders will often have standards for borrowers who want to include income from rent when applying for their VA loan. You might need a documented history as a landlord. Purchasing multi-unit properties can also come with cash reserve requirements from lenders. Even trying to use the incoming rental income to offset other costs and fees might not be doable.

Guidelines and requirements can and will differ. Talk with individual lenders about your goals and what they require in order for you to pursue a multi-unit purchase using your VA loan.

This is super information. Herohomes is here to help you navigate everything you will need to know to help you find the property that is us right for you.



Vets can put the ‘family’ back in multifamily homes


Here is another great article by Kara Baskin for the Boston Globe. Kara's piece explores another super application for multiunit properties. Often called multifamily properties here you see how one extended family can fill up a multiunit property and enjoy the lifestyle living this way fosters. Of course this concept is nothing new in most parts of the world and really only went out of style in this country after John-boy moved off Walton mountain. We love this idea and hope our culture might rediscover the richness of family and community that this lifestyle option provides.

"Many are renovated and sold as condos; other owners hang on to them as rental properties. (With the average apartment rent topping out above $2,000 in Greater Boston, multifamilies are an investor’s dream.)" 

Click here to read the full article



Using VA Loans for Investment Properties


Going back a little, 2014, to tell you about a great article written by Alex Summers for NuWire Investor. He answers the question  "Can you use a VA home loan to buy investment properties? The short answer is no… and yes."  We would say the short answer is yes and yes but Alex takes it to a level that, love him or hate him, Donald Trump might endorse as a great way to get rich. What Alex characterizes as a loophole we see as a thoughtful inclusion, by the regulators, of properties that have the potential to substantially improve the lives and financial health of our Service people and their families. We think once you get past the to good to be true shock you will agree. Here is an excerpt for those of you who like to dream big.  

How to Make it Work

  • Purchase Property A – a four-unit home – with a VA loan.
  • Rent out three of the units and live in one to satisfy the VA loan occupancy requirements.
  • After a year, find determine your eligibility for an IRRRL. If eligible, take out an IRRRL on your Property A and continue living in the property.
  • Start the process of getting approval for a second VA loan. Keep in mind that the entitlement you receive is the amount you can borrow with no money down. You could still qualify for a VA loan, with a small down payment even if you have used up your entitlement.
  • When you are approved, start the search for Property B. You can use your VA loan to purchase an existing property, or build a new one. You can also use the VA loan to purchase another multi-family property.
  • Purchase the new property and assume occupancy within 60 days of closing, unless you meet certain exceptions. If it’s a multi-family property, rent out the remaining unoccupied units.
  • Turn rent out the remaining unit in Property A, making it a 100-percent an investment property.

If you decide to make Property B another owner-occupied rental property, you could use the equity in both properties to purchase a third investment property – either by getting another IRRL on Property B and trying the VA loan process again, or using some other form of financing.

Published on: Monday, July 21, 2014
Written by: Alex Summers, Guest Author

Read the entire article here



Old but good advice "10 Financial Tips for Military Families"


I came across this article recently and wanted to share it with you all.  I find what we are doing particularly interesting because it involves so much more than just helping Vets find a home. We are really about helping Vets help themselves.  What we have learned is that in addition to the VA mortgage zero down benefit many members of the military have access to an entire list of special benefits and legal protections that can make a huge difference in their family's personal finances.

Which include the following:

Low-cost investments

Getting 10% on your savings, guaranteed

Benefit from tax-free in, tax-free out.

Transferring  education benefits

 Inexpensive life insurance

Tax breaks

 Housing breaks

Comparable salaries

Resources for finding a new job

This is all out there but so many Vets are unaware or are reluctant to use these benefits  they earned, that is correct earned. Using these benefits is no different than collecting your pay.


click here to read the article.

By Kimberly Lankford, November 9, 2012



Many veterans who have served our country are not prepared.


Great info for Vets!!


Financial Planning For Veterans

By Mark P. Cussen, CFP®, CMFC, AFC | January 14, 2015 — 4:00 PM EST


The Bottom Line

Many veterans who have served our country are not prepared for the economic reality that await them after they separate or retire. Some of them need education in basic finance, while others face more complex issues. But advisers who take the time to service them effectively can count on having them as clients for a long time to come. (For related reading, see: How Much Does it Pay to Be a Hero?)


Read more: Financial Planning For Veterans | Investopedia

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Here is a pretty good article posted on that offers advice to Vets who may be interested in income earning properties. It’s worth a quick read and does a pretty good job of highlighting a few of the reasons why having a team like ours to help you in this process might be the right choice for you.  The author also shares his experience and how the numbers worked for his deal.

Using Your VA Loan as an Investment

We sometimes get asked by our loan candidates about if they can use their VA loan as an investment. While the answer to this question depends on what you consider an investment, I can share how I used my VA loan as an investment.

Multi-Family Homes

The VA loan can be used to purchase up to a 4-unit house so long as it is owner occupied. These homes are also known as multi-family dwellings, and can be referred to as 2, 3, or 4 family houses. These homes are typically separated units with each functioning as a separate apartment.