Using a VA loan to purchase your home is one of the smartest things you can do as ahome buyer. I have said time and time again that anyone that is entitled to a VA home loan and does not use it, has got to be very uneducated when it comes to understanding his/her VA benefits.
One place where Veterans have tried and keep trying to use their VA benefits and are struggling, is when it comes to buying a rental or investment property or when the veteran is not able to sell his/her current home and wants to rent it out in the meantime and then go buy a new home.
Perhaps the most constant guideline that all lenders have when it comes to VA loans, is that the home most be intended as your primary residence and that you can only have one VA loan outstanding at a time per veteran. The reason this VA loan guideline is pretty standard for all VA lenders is because it is an actual VA program guideline issued by the Department of Veterans Affairs.
I will attempt to layout some examples in the following table:
Veteran’s Question About the VA Loan and it’s Usage
Suggestions for Veteran
|Can I buy a home with a VA loan and rent it out to someone?||NO||If you are buying a multi unit property like a duplex or 4-plex and you are going to occupy one of the units then you could essentially buy a home with a VA loan and rent it out|
|Can I rent my current home that has a VA loan on it to someone else that is a NON-Veteran?||Yes||You will not be able to buy a new home with a VA loan until you refinance the home that is now being rented into a loan that is NON VA.|
|Can I have more than one VA loan at a time?||NO||Some exceptions to this rule are possible. If two veterans are married and one veteran had a VA loan on a home prior to getting married, then the two try to buy a home together once married; this could happen if the veteran that has not used his/her VA loan before is able to qualify.|
|Can a Veteran use a VA loan more than once?||Yes||It is possible to have unlimited access to your VA home loan eligibility. As long as you are able to sell your current home with a VA loan on it, then you can always buy again with a new VA loan.|
There are always cases or questions that may not have been discussed in this post, and I hope you find the little bit of information I have shared useful. Should you need more details or have a specific question, I certainly hope you can find it on LowVARates.com or that you will feel free to submit your question to our Contact Us page.