Can I Use a VA Loan on Investment Property?
VA Loans can be used to purchase a home in which the homebuyer intends to occupy as their primary residence. A VA Mortgage cannot be used to purchase investment property or land.
While a VA Home Loan cannot be used to purchase property solely for investment purposes, such as a rental home, the Department of Veterans Affairs does allow a homebuyer to use the VA Loan on a residence that has one to four units – as long as the homebuyer certifies that they intend to occupy the home.
This means a potential homebuyer could buy up to a fourplex, occupying one unit and renting the additional space.
Those interested in refinancing should note that the VA Loan’s property and occupancy requirements are the same for all types of VA guaranteed loans, with exception to the IRRRL (Interest Rate Reduction Refinancing Loan).
An IRRRL has different occupancy requirements and the borrower must certify only that they previously occupied the home.