Can Veterans use a VA Home Loan to Buy Rental Property?

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by Frank Lozano, Amerisave Mortgage VA Loan Specialist

A. The idea of buying a building intended as a rental property is sound-but VA mortgages aren’t intended for this purpose. If you buy a home with a VA home loan, you must certify that you intend to “personally” live in the house. There are naturally exceptions made for houses that are in the building stages when the sale is made, but the general rule is you must occupy the house within sixty days of the loan closing.

The occupancy requirement applies to all VA guaranteed loans except one; the Interest Rate Reduction Refinancing Loan or IRRRL. For these loans, the veteran is required to certify that the dwelling was previously occupied as the home.

Furthermore, you can buy you home as a primary residence and then, afterwards, rent it out. But you cannot purchase a 2nd home with VA until that 1st one is paid off.

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