Once you’ve found a trustworthy lender to provide you with a VA loan in Colorado Springs, you’ll need to figure out the type of property you want to buy. Single family homes may be the standard option, but many veterans and qualified military members use the loan to buy a multi-family home. Like all types of properties, there are limits and restrictions in place for people looking to buy a multi-family home. This is what you need to know.
Full Entitlement Means No Loan Limits
The VA loan program used to have limits on the amount you could borrow based on the type of property you were looking to buy. Now, those limits are waived for borrowers with the full amount of entitlement remaining. If you’re buying your first home, you have full entitlement for the VA loan and can buy a multi-family property as long as you’re able to afford the monthly payments. However, if you’re still paying off an outstanding VA loan in Colorado Springs, you’ll need to repay that loan in full to be able to buy a home without a loan limit.
There Are Caps on Sizes
Multi-family homes come in many different sizes. Some are much larger than others, featuring dozens of units while others can be as small as a two-unit duplex. In most cases, you’re only able to use a VA loan on multi-family properties with no more than four units. If you’re looking to invest in a multi-family home with more units, you’ll need to use a different type of loan for the purchase.
You Must Live in One of the Units
People interested in using VA loans in Colorado Springs to buy a multi-family property must still satisfy the residential requirements to qualify for the loan. This means you must be willing to live in one of the units as your primary address for at least one year. Remember, VA loans are only for borrowers looking to buy a primary residence. If you’re trying to buy a multi-family home as an investment property, you’ll need to use a different type of mortgage.
Using a VA Loan Is a Great Option
Buying a multi-family home gives you a way to earn additional income over the year by renting out the other units. Using a VA loan in Colorado Springs to buy that property is one of the best things you can do. Contact our team to learn more about your options.