Multigenerational living is becoming more popular due to its numerous financial and lifestyle benefits. In fact, since the early 70s, the number of Americans living in multigenerational households has more than doubled. No doubt, this type of living situation has its advantages, but how does it apply to military families? Can VA mortgage loans be used for multigenerational homes or multi-dwelling units? Here’s what you need to know.
What Are Multigenerational Homes?
Multigenerational homes are living arrangements where more than two generations of a family live under the same roof. These homes are designed or adapted to accommodate the needs of a diverse age group, ranging from young children to elderly family members. This type of living situation can offer numerous benefits, such as shared financial responsibilities, stronger family bonds, and mutual support for childcare, eldercare, and daily household tasks.
Can Multigenerational Homes Be Purchased with VA Mortgage Loans?
Yes, VA loans can be used to purchase multigenerational homes, as long as the borrower meets the specific requirements set by the Department of Veterans Affairs. VA loans are a benefit for veterans, service members, and certain military spouses, offering favorable terms such as no down payment, no private mortgage insurance, and competitive interest rates.
Important Factors to Consider
To use a VA loan for a multigenerational home, there is one key requirement to keep in mind: the veteran or service member must intend to occupy the home as their primary residence. This means that one of the units in a multigenerational property must be used by the veteran as their main living space. Here are some important considerations:
- Primary Residence: The veteran must confirm that they intend to occupy the home as their primary residence. This is a fundamental requirement for VA loans that helps ensure that the program serves its purpose of helping veteran’s own homes where they live, rather than as investment properties.
- Property Type: Multigenerational homes can vary in structure, from single-family homes with separate living spaces to multi-unit properties (up to four units). VA loans can be used to purchase both types, provided the veteran lives in one of the units.
- Loan Limits and Qualifications: While VA loans no longer have a fixed limit for eligible veterans with full entitlement, lenders will consider the veteran’s income, credit history, and other factors to determine how much they’re willing to lend. The cost of a multigenerational home should align with the veteran’s borrowing capacity.
- Inspection and Appraisal: The property will need to pass a VA appraisal and inspection to ensure it meets safety and livability standards. This is particularly important for older homes or those with unique multigenerational modifications.
- Additional Considerations: When purchasing a multigenerational home with a VA loan, consider how the property’s layout and features accommodate the needs of different generations. Accessibility features, privacy concerns, and shared spaces should be evaluated to ensure the home meets the family’s needs.
We’re Experts in VA Mortgage Loans
At Mortgage Solutions Financial, we help veterans and military families overcome homeownership challenges every day. Call today to speak to an expert about your situation and get the information you need to make your homeownership journey a success.
