Here is a real estate secret that most people don’t know about. VA loans are one of the best house-hacking tools around! They allow eligible veterans and active-duty service members to buy a multi-unit property, live in it, rent out the other units, and turn it into an income-producing venture, with no money down. This house-hacking process can often cover your entire mortgage, and produce passive income, all while building equity in your property. Read on to see how you can buy a multi-unit property with a VA loan and build equity with very little investment.
Can You Buy a Duplex with a VA Loan?
Yes. Buying a duplex is one of the most popular ways to house-hack using your VA loan benefits. However, you will need to meet VA guidelines before the loan will be approved. If you have your full VA entitlement, there is no limit on how much you can borrow (you have to qualify first) with zero money down. If you have a partial entitlement, your zero-down payment formula is tied to Federal Housing Finance Agency (FHFA) conforming loan limits. The duplex must also pass a VA appraisal and meet Minimum Property Requirements (MPRs). These are VA baseline standards to ensure the home you are buying with a VA loan is safe, structurally sound, and sanitary. The appraiser will check that the home meets these guidelines.
