How to Use a VA Loan to Buy an Investment Property in Boise Idaho

Did you know you can use your VA loan to buy an investment property? We’re diving into exactly how you do that in this video.

Hey, there are you a veteran looking to purchase a second home or investment property I'm going to break down exactly how you can do this in this video so you can start building Financial Freedom through real estate first, my name is Curtis Chism with the Chism team brokered by exp realty and if you are a veteran looking to buy your first home or second home as an investment property just give me a call, text or email and let's chat about it. 

Now as veterans you’re entitled to certain benefits when it comes to buying a home one of these benefits is the VA loan which allows you to buy a home with a zero-dollar down payment and no private mortgage insurance which can save you hundreds of dollars a month on your payment what did you also know that you can use that VA loan purchase a second home. 

Yeah, it's actually true with your full entitlement you can finance a second home just like your primary residence.  So this allows you to move into the second home rent out your existing home and start building lasting wealth through real estate. 

First, let’s explain what your full entitlement means, your full entitlement is the amount that VA guarantees to a lender on your behalf it’s the maximum amount the VA will pay if you default on your loan. If you have a VA loan that started before January 1st, 2020, then you may have some limits on your loan based on your county loan limits. 

However, for any loan made after 2020, there is no limit on the entitlement in other words the VA doesn’t place a limit on how much you can borrow however you can’t just go borrow millions of dollars to buy homes. 

You’ll be limited by how much your lender will allow you to borrow so what they’ll do is they’ll make sure that you can actually afford the home that you’re buying and to look at things like income, credit, and employment. 

The cool thing about buying a second home with the VA loan is that they can count 75% of the projected rental income from your first home as part of your income. This is going to help qualify AI to purchase that second home much more easily. 

Now to use your full entitlement to buy a second home you do have to meet certain requirements. First You must have used your VA loan eligibility to purchase your primary residence something you lived in so that means you actually have to have lived in that home for at least 12 months before renting it out. 

You can buy that second home and finance up to 100 of the home’s value with no down payment required. You also don’t have to pay private mortgage insurance which as I said can save you hundreds of dollars every single month. 

Keep in mind you can always bring in additional down payment money to purchase a second home if the lender won’t lend the full amount. In other words, if you’re buying an eight hundred thousand dollar second home and the lender will only lend seven hundred thousand dollars you can bring in the additional one hundred thousand dollars to cover the difference. 
 
If you’re a veteran looking to build Financial freedom through real estate this is how you can buy a second home to live in and rent out your first home, If you’re looking to buy your first or second home using VA benefits reach out to me so we can chat through all the specifics of your situation and I’ll get you in touch with an awesome local lender that can help make all of this happen.