Although it would seem that renting is prohibited by VA loan regulations, there are ways for military members to rent out their property that is financed by a VA loan.
You’re Expected to Live In the House
It is expected of you to occupy the home you purchase with a VA home loan as your primary residence. Furthermore, unless the VA grants you an extension, you must move into the house within 60 days of closing on the deal.
This is known as the occupancy requirement. You should be fine if you’re using the loan to purchase a home that you intend to use as your primary residence. You will need to apply for a conventional mortgage if your goal is to purchase a home specifically for the purpose of renting it to a tenant.
One of the strict conditions of the VA loan that you accept when you apply for and receive the loan is the occupancy requirement. But the VA doesn’t anticipate you staying in that home indefinitely. All you need to do is demonstrate that you lived there exclusively for a predetermined amount of time.
The majority of VA home loan agreements require you to live in the property for a minimum of 12 months. You should be able to rent the house to a tenant at the end of that year, even if they are not in the military.
Purchasing a duplex or multi-family property is the only way to be able to rent out a property right away after purchasing it. You are free to rent out the other units to tenants as you see fit, but you must reside in one of the units and use it as your primary address.
You Can Buy with a VA Loan and Rent
If you meet all of the requirements for a VA loan, you can use the loan to purchase a home and rent it out. Don’t wait to start looking at loan options if you’re ready to buy. Apply online for a VA loan, and don’t hesitate to contact our staff with any questions or concerns.
FAQ
How long do you have to live in a house with a VA loan before renting?
How Can You Use A VA Loan To Purchase A New Primary Residence While Renting Out Your Current Home? You can rent your home to a tenant if you have been living there for a minimum of 12 months or if you have been occupying it for less time but have been ordered to a new duty station. The tenant doesn’t need to be employed by the military.
Can you use a VA loan for rental property?
You can always do this to make some extra rental income if your property is large enough for you to rent out a bedroom or even a guest house. You can use a VA loan to finance the purchase of the property, and you are free to choose how you rent out the rooms as long as it is your primary residence.
Can I use my VA home loan for an apartment?
If you don’t live in one unit of a multi-family house, you cannot use a VA loan to purchase rental properties that are not your primary residence. VA loans aren’t intended for speculation or investment properties; instead, they’re meant to assist you in purchasing and owning your own house.
What is the VA owner occupancy rule?
The veteran must move into the house within a “reasonable time” of receiving their VA loan. The VA mandates that the borrower move into the house within 60 days of the VA loan closing, but what does that actually mean? As you’ve read, there are exceptions to that rule.
Read More :
VA Loan Regulations: Renting Out Your VA Loan Purchased Home