Your Guide to Using a VA Loan for Investment Property

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  • Can you use a VA loan for investment property? Find out everything you need to know about possibly purchasing a home for rental purposes with a VA mortgage.

In most cases, you can't use a VA loan for investment property. This zero-down mortgage program is designed for military members, veterans and eligible spouses to purchase a primary residence, which means you live there most of the time. In some cases, however, you may be able to earn money from part of the property you buy with a mortgage from the Department of Veterans Affairs.

How Can You Use a VA Loan for Investment Property?

You can purchase a multifamily home with up to four units through the VA mortgage program. You must live in one of the units of the property full-time, but you can earn income by renting out the other units. You can also rent out a home you purchased with a VA loan after using the property as your primary residence for at least 12 months. 

Can I Buy a Multifamily Home With a VA Loan?

You can purchase a home with multiple units through the VA mortgage program as long as you meet the income requirements for the property. You're limited to four units unless you purchase the property along with another veteran, in which case the limit is seven units. 

What Is the Maximum Amount for a VA Loan?

If you plan to buy a single-family home, you must stay under the limit for your county (typically $647,200). Higher limits apply to properties designed to house multiple families. In most parts of the country, the VA allows you to borrow up to about $1.2 million for a four-unit property, although you may need a down payment depending on the total amount of your VA entitlement for the loan. The VA updates these limits each year.

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