VA Home Loan for a Duplex

I’m surprised how few Veterans know that their VA Home Loan Benefits can apply toward the purchase of a duplex.  In fact, Veterans can also use their ‘VA’ to buy a triplex or fourplex.

I think part of the confusion comes from the blurry lines between a CalVET and Veterans Administration (VA) home loan.  CalVET home loans are for those vets who enlisted while a California resident and are subject to Californians passing  bonds to fund them.   VA Loans are national loans guaranteed by the Veterans Administration.  Unlike CalVET loans Veterans using their VA benefits can use their entitlement over and over again.  VA loans do not expire 25 years after discharge, as CalVET loans do.  VA loans are available to Veterans for their entire life.  And, more to the topic of multiple units, Veterans can use their VA to buy a multiple family residence.

Some important points:

  • Owner occupancy is a standard requirement for VA home loans, including multiple family units.
  • The maximum, no down payment VA loan is currently $417,000.
  • The maximum VA loan amount now is slightly over $1 million.  On those sales prices over $417,000 the vet is required to put down 25% of the difference.  For example, a sales price of $700,000 would require $70,750 down ($700,000 – $417,000 = $283,000 x 25%).
  • You may use 75% of the other unit’s rental income to help qualify for the VA loan.

With today’s low interest rates and lower sales prices now would be an outstanding time for Veterans to buy a home, duplex, triplex, or fourplex.  And…I just happen to know an excellant, VA Direct Lender.  After all, it’s not only what you know but also, who you know.

6 thoughts on “VA Home Loan for a Duplex”

  1. Hey, “Superdupermegapuper”,

    Thanks! Watch for my new navigational button “Veterans” coming soon. It will is dedicated to Veterans.

    Do you have any particular questions about your VA Benefits?

  2. Super’,

    My last comment has an oops…”It IS dedicated…”

    Thanks for your service to our country.


  3. Rex Carr

    Very Informative outline for a VA loan. Can a conventional loan on a duplex be converted to a VA loan or a cash out refinance? What are the debt/income ratios on the front end and back end?

  4. Hello Rex,
    Yes, a conventional loan on a duplex can be paid off with a VA refinance loan (assuming there is sufficient equity). Yes, you can also pull out cash with your VA refinance. The debt-income-ratio will vary relative to the strength of the borrower. Typically we approve “back ratios” of 40 – 45%. We pay little attention to the “front” ratio. Great questions Rex. Keep them coming.

  5. Michael Walters

    where you asking a question? only got a portion of a sentence
    Mike Walters

  6. Michael Walters

    All you need do to subscribe is click “subscribe” at the bottom of the posts next to the RSS icon. Thanks for you interest.

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