The VA loan program is a valuable benefit for eligible veterans and active-duty service members, allowing them to purchase homes with favorable terms. One common question among potential homebuyers in Washington is whether they can use a VA loan for multi-unit properties. The answer is yes! However, there are specific guidelines and requirements that must be met.
Using a VA loan for multi-unit properties is indeed possible, but the property must meet certain criteria. In Washington State, VA loans can be used to finance up to a four-unit property, provided that one of the units is occupied by the borrower as their primary residence. This means you can buy a duplex, triplex, or a fourplex, as long as you live in one of the units.
One of the significant advantages of using a VA loan for multi-unit properties is the potential for rental income. Rent from the additional units can help cover the mortgage payments, making it an appealing option for many veterans and service members. Additionally, VA loans typically do not require a down payment, which can make purchasing a multi-unit property more accessible compared to conventional financing options.
To qualify for a VA loan on a multi-unit property in Washington, you will need to meet the standard VA loan eligibility requirements, including serving the required time in the military, obtaining your Certificate of Eligibility (COE), and meeting credit and income standards. Additionally, the property must pass an appraisal and a VA inspection, which ensures that it meets safety and livability standards.
It’s also essential to note that while you can use a VA loan for an investment property, it is primarily meant for primary residences. Therefore, the intent must be to occupy one unit while renting out the others. If you are considering purchasing a multi-unit property as an investment with no intention of residing in it, that would not be eligible for VA loan financing.
Before moving forward with a VA loan for a multi-unit property, it is advisable to consult with a lender experienced in VA loans. They can guide you through the specific steps to take and provide you with critical advice on how to maximize your benefits. Working with a seasoned real estate agent can also be beneficial, as they can help you identify suitable multi-unit options and navigate the local market.
In summary, buying a multi-unit property in Washington using a VA loan is a viable and advantageous option for eligible veterans and service members. This strategy can lead to homeownership while also providing an opportunity for additional income streams. Be sure to thoroughly understand the requirements and guidelines, and don’t hesitate to seek professional advice to ensure a smooth purchasing process.
