Not everyone looking to use their VA loan benefit is interested in a single-family home. In fact, the VA finances several different types of properties, one of them being multi-family homes.
The reasoning behind deciding to purchase a multi-unit property depends on the buyer, but there can be some serious pros to doing so. Whether you are looking to live right next to your family, or are interested in renting out the extra units for supplemental income, a VA mortgage can help finance a multi-unit property.
VA Loan Multi-Family Unit Requirements
Multi-unit homes are a single building with multiple units inside. These are commonly referred to as a duplex, triplex, or fourplex. Because these buildings have multiple occupants, they must meet some unique requirements.
Beyond traditional VA loan requirements, VA lenders will also want to see the following requirements met before financing your multi-family property.
Each unit must have:
- Their own utility services
- Shared water, sewer, gas and electricity lines
The multi-unit property is permitted to have common areas such as laundry and storage rooms, but the VA requires that each living space must be self-contained for privacy.
Pros of Multi-Family Homes
1. You can purchase a multi-unit home without a down payment.
Since the price of multi-family homes is likely going to be more expensive than purchasing a single-family home, you are going to save some serious money on a down payment.
2. You can buy up to 7-units with a joint VA borrower.
Typically speaking you’d only be able to purchase a four-unit property if it were just you on the loan. However, with another VA borrower, you can maximize the potential.
3. You can make extra income.
While VA occupancy requirements state you must live in one of the units for 12-months as your primary residence, this doesn’t mean you can’t rent out the other units for supplemental income