VA Loan Reader Question

Can I Rent Out the Home I Purchased With a VA Mortgage?

A reader asks, "How long do you have to occupy the home for? (i.e. what if you move after 6 months?) Do you have to sell/refinance the home or can you rent it with the VA loan still on it?" The Department of Veterans Affairs official site has this to say about VA loans and occupancy requirements:

Can I Rent Out the Home I Purchased With a VA Mortgage?

A reader asks, "How long do you have to occupy the home for? (i.e. what if you move after 6 months?) Do you have to sell/refinance the home or can you rent it with the VA loan still on it?" The Department of Veterans Affairs official site has this to say about VA loans and occupancy requirements:

"Q: I want to buy a house with a VA loan. Do I need to occupy the property?

A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the loan is closed or within a reasonable time afterward."

 

VA Loan Rules on Down Payments

 

One of the things many first-time home buyers like about the VA loan program is the zero down payment option. VA loans are available for "the full reasonable value" of a given property, so in general there is no down payment requirement unlike other government home loan programs such as FHA mortgages, which require 3.5% down at a minimum.

But some borrowers do find themselves in situations where a VA loan could require a down payment. According to the VA Lender's Handbook, Chapter Three, "no down payment is required by VA except in the following circumstances:

 

VA Loan Reader Questions: Does Rental Income Qualify as Verifiable Income for a VA Home Loan?

 

A reader asks, "Can the rental income from a multi-unit property be used at least partially to qualify for the loan? I know in the past that it could as long as the veteran had six months of cash reserve on hand to cover rental vacancies."

This question comes up frequently, and usually in one of two ways. Some borrowers want to know if a VA home loan can be used to purchase a multi-unit property (yes) and also want to know if rental income from said property can be used to qualify for the VA mortgage loan (it depends).