How to Get a VA Loan Multi family in 8 Steps 

Military personnel who take up a house loan backed by the U.S. Department of Veterans Affairs (VA) don’t require a down payment when purchasing a multifamily property. However, there are several crucial needs. you’ll need to comprehend to receive a VA loan for a multifamily property before. You take on the duties of both homeowner and landlord. Get a VA Loan Multi family follow these steps.

Why should I acquire a multifamily property? What is it?

A multifamily home is typically a single structure that contains two, three, or four distinct residential units for various families. A two-, three-, or four-unit building may also be referred to as a duplex, triplex, or fourplex.

The VA mandates that you reside in one of the apartments while earning rental income from the others. This allows you the chance to increase your home’s value and turn into a real estate investor. This is referred to as “house hacking.” Your monthly mortgage payments may be partially or entirely offset by the additional income. You may even be able to keep the extra money for other housing-related expenses.

Three reasons to use a VA loan to purchase a multifamily property

Comparing a VA loan to other lending programmes when purchasing a multifamily property, there are three key advantages:

  1. No money is needed as a deposit. When compared to loans backed by the Federal Housing Administration (FHA). Which demand a minimum 3.5% down payment and conventional loans. Which might require as much as 25% down to buy a multifamily house. Multifamily residences can be acquired without a down payment provided you have adequate VA entitlement.
  2. Mortgage insurance is not necessary. Mortgage insurance, which is necessary to help lenders recover money lost. If you default on an FHA or conventional mortgage, is not necessary for VA loans.
  3. Up to a seven-unit building may be purchased by two or more qualified veterans. For the acquisition of a multifamily residence with up to seven units. The VA offers a special “joint loan” option for two or more veterans. You are limited to a maximum of four units by other financing programmes.

How Can Get a VA Loan Multi family purchase a property?

A VA loan may be used to purchase a multifamily property if:

  • You satisfy the minimal standards for military service for a VA mortgage.
  • Based on your income, credit ratings, and total indebtedness, you are eligible.
  • You have enough spare money to pay the mortgage on the VA multifamily home you are purchasing for six months.
  • Within 60 days of closing, you intend to occupy one of the properties, and you’ll stay there for at least a year.

Follow these Steps


You must show proof that you are eligible for a home loan backed by the VA if you are a veteran, active-duty service member, reserve or national guard member. The majority of service members confirm their status by requesting a Certificate of status via their lender, via mail, or online. Survivors and other qualified spouses may additionally.

Check your area’s multifamily loan limits

Although the VA does not have a maximum loan amount for multifamily properties, lenders frequently impose their own restrictions based on regional conforming lending limits. The current multifamily limitations in most of the country are as follows:

  • For a two-unit house, $828,800
  • A three-unit house costs $1,001,650.
  • A four-unit house costs $1,244,850.

RECOGNISE THE MINIMUM MORTGAGE REQUIREMENTS FOR THE VA.  You must fulfil specific requirements for a VA loan in order to apply, such as:

  • If you have enough entitlement, there is no need for a down payment.
  • Credit score: Although the VA does not specify a minimum score, lenders tend to favour applicants with scores of at least 620.
  • Debt-to-income (DTI) ratio: Generally speaking, lenders anticipate that your debt will not be higher than 41% of your income, or DTI. Up to 75% of the verified rent, the current rent being paid on the property you’re purchasing, or the fair market rent as determined by a VA appraiser may also be able to be included in your income calculations.
  • Employment history: In general, lenders require a minimum of two years of work experience; however, if you were recently fired, some exceptions might be made.
  • reserve funds. For each rental property, you must show that you have enough additional money saved up to pay the principal, interest, taxes, and insurance (PITI) for up to six months. These assets, often known as “mortgage reserves,” must be quickly convertible into cash; checking and savings accounts are the ideal option, however you may be able to use balances in a 401k or retirement accounts.
  • funding charge. Depending on their down payment and if they have previously used their home loan advantages, VA applicants must pay a funding charge ranging from 1.40% to 3.60%. The cost of the VA loan programme is covered by the fee, which is levied as compensation.
  • experience in managing rentals. In order to qualify you with rental income on a multifamily home purchase, the VA requires confirmation that you have previously managed a rental property or that you have engaged a property management business.

For multifamily residences with VA financing, lenders are required to acquire a VA appraisal in order to protect the interests of VA borrowers. In addition to determining the home’s value, the appraiser must make sure it satisfies the property’s minimal standards and is “structurally sound and safe.” Your home evaluation will cost significantly more due to the additional research needed to accomplish a multifamily appraisal. For instance, a two- to four-unit appraisal in the state of Georgia costs $800 as of May 2022, compared to $650 for a single-family property.


To receive the best bargain, compare loan estimates from at least three to five mortgage companies. The procedure for obtaining a VA loan is identical to that for a single-family house, but lenders will require proof of your anticipated rental revenue from the apartments you intend to rent out. One thing to keep in mind is that the VA only allows lenders to charge an origination fee that is equivalent to 1% of the loan amount for processing your loan file.


The seller’s closing costs (up to 4% of your loan amount) can be negotiated by a skilled real estate agent who is familiar in selling loans with VA loans. A VA-experienced agent will know how to use the VA amendatory clause to terminate your contract and get you all of your upfront money back if the worth of your house turns out to be less than the price you initially gave.


Three business days prior to closing, review the VA closing fees on your final closing disclosure. If you are exempt due to a service-related disability, ensure that the lender waives your financing charge and that you are not paying any non-allowable expenses.


To select tenants and create a rental agreement, you can collaborate with a real estate agency. You might also hire a property management company to handle landlord duties or speak with a real estate attorney to review the contract.

pros and drawbacks of using a VA Loan Multi family property

  • There isn’t a down payment required.
  • There will be no mortgage insurance costs.
  • Up to seven pieces may be purchased.
  •  Rental revenue is used to qualify.
  • Prior landlord experience is required to qualify utilising rental income.
  • For the needs of the mortgage reserve, you’ll need to have more cash on hand.
  • One of the units must be your primary residence.
  • Your house needs to adhere to strict VA assessment requirements.

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