A multi-family unit property can be an excellent way for veterans to break into real estate investing, all while using their VA benefits. In this video, Low VA Rates will answer your top loan questions about buying a multi-family property so you can find out if it's the right choice for you.
Today we're going to talk about buying a multi family unit property. This is a video geared primarily towards veterans. We try to make most of our mortgage videos all encompassing for civilians, conventional FHA, you name it. Today, specifically, we're going to talk about VA.
What qualifies as multifamily for VA?
A multifamily unit property is either a duplex, ie there's two units at the house, a three plex, or a four plex. You cannot go over a four plex. So it's a 2-4 plex is what we're talking about when we talk about multifamily.
It's an amazing opportunity to, number one be a homeowner, but also be a real estate investor at the same time by renting out rooms number two, three or four to renters.
Can you buy a multi family residence with a VA loan?
Yes, you can. Absolutely you can, as long as it does not have more than four units.
Are the rates that on a multi family property any different than the rates on a single family residence or condo?
No, they're not for veterans. Some products, they might consider a multi family property more risky, and therefore they would elevate your interest rate.
Keep in mind, you have to live in the property in order to use your VA mortgage. So if you think you're going to buy a four plex or a duplex and just put renters in every single unit, you can't do that with your VA loan.
We can certainly help you do that with an investment loan or something outside of the VA, but with VA, you're going to live in one of the units even if you're going to rent the others out. Because you're living in the property, your interest rate will not be any higher than it would be for any other VA loan.
Can I use future income from renters two, three or four in order to get approved for the loan?
Yes, you can. Okay, so let's say you're going to go out and buy a $600,000 4 Plex. You don't make enough money to afford a $600,000 single family home. So you certainly don't have enough money to afford the payment on a $600,000 multiplex. What you can do is you can use the income that you would derive from unit number two, three and or four to help you qualify for the mortgage.
Can all lenders give mortgages for multifamily unit properties?
Yes, all lenders can, however there are many lenders out there that won't. Their risk tolerance isn't where it should be or they've got other reasons to believe that these are not the types of loans they want to do. Here at Low VA Rates however, condos, single family, duplex, triplex, four Plex, we will lend on a multi unit property all day long for an eligible veteran.
What is different about getting a mortgage for a multi unit property?
For veterans, there really is no difference. There's no minimum FICO score. You get higher debt to income ratios as a veteran than you can on a conventional loan. You still got to get an appraisal and you have to have minimum property requirements that you meet, but there's really no difference at all in the process to get approved for the loan on a multiplex if you're a veteran.
What is the most important thing to review when looking for a multifamily unit lender?
Really, don't look anywhere other than Low VA Rates. Just kidding! We are firm believers in shopping around. We have videos on our YouTube channel about why it's in your best interest to look at more than one lender when doing your mortgage. (Video: How to Shop for the Best Loan)
The most important thing to think about when you're looking for a lender on a multifamily unit property, just number one, ask them if they do it, and ask them how many of them they've done.
Just by way of reminder, we wear red, every Friday here at Low VA Rates. Even if I'm out of town, I wear red. Why? Because red for us is an outward expression of a real passion and love that we have for our military. RED stands for Remember Everyone Deployed. And whether deployed or not, we wear red every Friday as a way to say thank you for those that have served or are serving.
So with that. If you like red swag, as we call it, you're welcome to take a picture of yourself wearing red on Friday, post it on the on Facebook or Instagram or wherever, put hashtag #RedFriday and tag Low VA Rates, we'll send you some red swag to sport yourself.
About the Author
Low VA Rates is dedicated to making VA loans easy to understand and fun to learn about. We go to great lengths to provide instructional videos to all of our veteran and military families. If you are looking for a VA or FHA home loan, VA streamline or any VA refinance, you found the right place!
Transcribed by https://otter.ai
Comments