Can you use a VA loan to purchase a multifamily property?

VA Loans Multifamily in Washington State

Yes, in certain cases, it is possible to use a VA loan to purchase a multifamily property, also known as a multi-unit property or a multi-family dwelling, using a VA loan. However, there are specific requirements and limitations that borrowers must meet in order to be eligible for a VA loan for a multifamily property.

The primary requirement is that the borrower must intend to occupy one of the units in the multifamily property as their primary residence. VA loans are designed to help eligible veterans, active-duty military personnel, and certain surviving spouses obtain affordable housing for their own use. Therefore, the borrower must occupy one of the units as their primary residence, and the property must meet certain criteria for VA loan eligibility.

The VA has specific guidelines for the number of units that a multifamily property can have in order to be eligible for a VA loan. Typically, a multifamily property with up to four units, known as a “fourplex,” is eligible for a VA loan. However, the borrower must occupy one of the units as their primary residence, and the property must meet VA’s minimum property requirements (MPRs) and pass a VA appraisal to ensure it is safe, sanitary, and structurally sound.

It’s also important to note that VA loans for multifamily properties are subject to the same VA loan limits that apply to single-family homes, which are set by the Federal Housing Finance Agency (FHFA) and vary depending on the location of the property. Borrowers must obtain a Certificate of Eligibility (COE) from the VA, meet the lender’s credit and income criteria, and go through the normal VA loan application and approval process.

Using a VA loan to purchase a multifamily property can be a complex process, and borrowers should work with a qualified mortgage professional who is knowledgeable about VA loan guidelines and requirements to ensure eligibility and compliance with VA regulations.