A VA loan is a great way for active service members and veterans to finance a home. This kind of loan is guaranteed through the U.S. Department of Veterans Affairs (also known as the “VA”). When you apply for a mortgage, the department will back the loan request so that you have an easier time qualifying. The funds in a VA loan still come from private lenders, but the approval criteria are typically less stringent than with more traditional mortgage loans.
One important thing to understand with a VA loan is that it cannot be used on all properties. Using this kind of loan on an investment property is impossible.
Can I use a VA loan for an investment property?
VA loans can only be used for primary homes. That means that you cannot use one to acquire an investment property or vacation home. It is sometimes possible to finance your primary residence and rent part of it out for rental income, which can then be used to invest in another property.
Do I qualify for a VA loan?
VA loans are reserved for eligible service members, and there are a few different ways to qualify. If you are currently in the military or have been honorably discharged, you might qualify for a VA loan. If you spent at least 90 consecutive days during a war on active service or at least 181 consecutive service days during peacetime, you might also be able to apply for a VA loan. Finally, you might be eligible if you have six or more years of service in the Selective Reserve or National Guard.
If you aren’t sure if you qualify or not, reach out to the U.S. Department of Veterans Affairs for more information.
For more information about VA loans, whether you qualify, and what you can buy with them, reach out to a mortgage broker Vancouver WA!
