If you qualify for a VA mortgage, this can be a great way to purchase rental income property. A real estate veterans loan helps you to purchase multi-family properties, as long as you plan to live there. You can rent the additional apartments to other veterans, as long as you agree to accept Section 8.
With other families paying rent to live in your building, you have a bit of help in repaying your veterans house mortgage.
Remember that there are some disadvantages to using a veterans house loan to purchase a multifamily property:
1. Vacancies. You cannot be sure that you will always have tenants. This means that you must be ready to pay your own veterans home mortgage payment without help. You cannot count on others.
2. You can only rent to other veterans. This limits the applicants you may have for your vacant apartments. Consider whether the town has a lot of veterans before you purchase the property.
3. You are responsible for maintenance. If you have a VA mortgage on a multifamily property, you must make any repairs to the property and you must pay the full cost.
Decide if a VA home mortgage is right for youThere are a number of great reasons to choose a veterans loan, including the often-lower interest rates, but you still need to decide if this is the right decision for you. Consider the potential downsides as well as the benefits.
Find VA mortgage specialists to take care of your loanSome companies specialize in giving home loans to veterans. These companies are well versed in the details of VA loans and can answer any questions you may have.
Apply for a VA mortgage through your regular bankYou don't need to see a specialist in order to get a VA loan. Many major banks also offer VA loans to qualified veterans.
- If you have a conventional loan with a high interest rate, you may be able to refinance that loan using a VA mortgage. This can be a great way to lower your interest rate.