VA Home Loan | How To Qualify For A VA Multi-Unit Loan

Obtaining VA financing for a VA home loan starts with checking a Veteran’s eligibility by taking proper procedures to obtain a Certificate of Eligibility. An eligible Veteran can obtain financing for a VA multi-unit loan as long as they are going to occupy one of the units and meet VA lending guidelines. Income qualifications for a VA multi-unit loan vary depending on the Automated Underwriting System. Taking advantage of 100% financing for a VA multi-unit mortgage is appealing to veterans because it means increasing their income by renting other units.

• The first step to the pre-approval process for a VA multi-unit mortgage is obtaining a Certificate of Eligibility.
  
• This can be done by applying online through the eBenifits portal or expediting the process by talking to an experienced Loan Originator who has access to the WebLGY system.
• The next step for a VA home loan is getting together proper documentation for underwriting and processing so that an experienced Mortgage Loan Originator can review and pre-approve.
• Ask for a list of general documents that are required for the underwriting and processing of a VA multi-unit loan.
  
  • Some examples for a VA home loan include, but not limited to DD 214, Certificate of Eligibility, 60 days bank statements, other assets, one month pay stubs, other income documentation, two years tax returns if applicable, two years W2s, copy of photo ID, social security card, and credit report.
• After this process is complete, a Loan Originator will run the Automated Underwriting System in order to determine the VA home loan eligibility.
  
  • This Automated Underwriting System is a risk based system that will result in findings to determine what a borrower can afford based on information about the Veteran.
• If a Veteran wants, Nationwide Mortgage & Realty, LLC has an option for a underwriter to review underwrite everything, but the property, and issue a pre-approval.
  
  • This is often referred to as “To-Be-Determined,” for a VA home loan.
    
    • This often takes pressure off the end of the process because everything has been reviewed, but the property.

The last step is writing a pre-approval and the Veteran to start looking at VA multi-unit homes. It is important to follow this procedure before looking for a VA multi-unit home so that it saves time for all parties. Often, the pre-approval process or guidelines vary by lender, which some mortgage companies have an internal guidelines on top of VA guidelines called an overlay. An example of an VA overlay would be requiring a minimum credit score.

Some lenders often write pre-approvals based on verbal information, which often cause stress during the mortgage process and can result in a last minute denial. Once a veteran is properly pre-approved, it is important to remember that just because they qualify, this does not mean all properties will. Veterans should make sure that they work with a realtor who understands the basics of VA approved multi-unit homes.