what is going on everybody in today's video
i'm gonna be going over everything you need to know about investing with a va loan this is brian
simardi he's a load officer done hundreds of deals and we're just gonna go through you know
everything you need to know so uh let's jump into it and as always if you have any questions about
anything just drop them in the comment section below and we'll answer it but to get started with
what types of properties are eligible for va loans uh anything for units and under so this va loans
as well as fha is a great way to house hack so you can you can basically buy an apartment
building you can get started in multi-family investing and financial freedom you have to live
in one of the units and then you can rent the other three units out and not only that but the
va fha pretty much any lender is going to use the rental income from the other units to help you
qualify for the loan the biggest perk about fha and va they generally give you a little
more leniency on your back-end dti your debt-to-income ratio that's why it's the better
option when it comes to investing or house hacking because say you have a little bit more in debt or
like a car loan that you didn't really understand about before in learning about investing it
gives you wiggle room whereas conventional they're pretty strict with their guidelines
and also it has to be your intention to live there for 12 months you know some especially in
the military you know situations can change you might get transferred but and it's kind of a gray
area but your intention has to be to live there for 12 months and then you can rent it out and you
can sell it you can do whatever you want with it yes big keynote is housing fraud fannie mae and
freddie mac are getting deeper into housing fraud so i don't know exactly what they do to figure out
or verify you're actually living on the property but i just you don't want to risk jail time
you can also just buy a single family house condo townhouse and then rent out a room or
two you can house hack so you can have cash flow coming in every single month i know here in
montgomery county there's a lot of properties that are built that way where you have like a walk-out
basement um running out of basement i can give you specifics here in maryland that's where i live
um a whole basement you can rent for at least a thousand dollars with our current rates right
now mortgages you're probably looking say like at a 500 000 house you're looking between like 33 3
500.
That's a third of your mortgage yeah that's that's pretty significant and over the course of
a year yet 12 000 you know that could go towards vacation a brand new roof brand new kitchen
bathroom and then as far as the condition of the property va loans kind of have a reputation
sometimes for being a little bit more strict and i guess yeah they are more strict but they're not
like not it's not like the entire house has to be fully renovated or anything like that correct
appliances stove fridge yeah and handrails for any stairs are the main things yeah i remember i had
a house one time or it wasn't it was for a client and we had to basically purchase i think
it was like a refrigerator or something like that before closing and they got a steal
of a deal on it but the appliances have to be there it has to be a livable type of property
another thing to add in there is that you do have to move into the property within 60 days
i don't know if i mentioned that so maybe you purchase a property that needs a little bit of
work you'd have to do your renovations and then within 60 days actually move into the property
and then who is actually eligible for va loans anyone who's available to get a certificate of
eligibility from the va so any bad remarks if you're a military member you may not be eligible
so it's important to reach out to a good lender to get your cle certified eligibly or if you're
in the military branch already still active duty you can reach out to your admin they'll
gladly give it to you okay perfect what about credit score credit score you can get as low as a
580 but there might be some stipulations in terms of credit wise or rate you might have a really bad
rate but 620 is generally the best number minimum i would recommend and then usually uh seven like
around 740 750 is like the ideal like in a perfect world yeah but you can still with va you can
qualify with with a lot less than that yeah so try to get that credit score up a little bit if you're
down what about uh down payment requirements down payment zero down but the biggest caveat here is
that there is a va funding fee on your first time using the va loan it's a 2.3 percent of the sale
price okay and then after that i believe is 3.2 if you use it sequential if you do not
have any service related disabilities at least 10 percent because if you do have a 10
disability you are exempt from that va funding fee okay so two percent and then plus you need closing
costs right so another i'd say a thousand i mean depending on your title company title company
appraisal you probably get away with like a less than three thousand dollar closing cost and some
some people some investors i mean you do have to we'll talk about uh purchasing the property
because it does have to be your primary residence but some investors will actually have the seller
the seller can actually credit you that amount right if you negotiate that with the seller yes
so if you have a good realtor you can negotiate closing costs okay so it technically could be
you know zero percent or close to zero percent if you negotiate the the correct way correct
and actually with my my first purchase with my my va loan i had uh the seller do seller
financing oh no way because it was only like three three thousand dollars for the closing
cost okay and it just covered everything for me there you go and i got lucky for my actual first
property i bought it from a previous investor it was a single family home okay and he kind of just
like he knew what i was going to do yeah so he's like i'll help you out and va loans are assumable
that's an attractive thing about them is that you know someone else could take on you know take over
the loan or even you could potentially actually there was a four unit in washington dc that i was
um i was looking at and it was actually a va who who owned it or a veteran that owned it so that
that loan that rate his price was kind of high but his monthly payment would have been pretty low so
i was kind of like evaluating that as a potential option as far as the purchase price of the like
the loan limit it's going to depend obviously on the city if you're in san francisco or we're
in the washington dc market uh you know the the loan limits are going to be significantly higher
right if you're in like jacksonville or something like that right so based on your entitlement from
the va you'll get that all in your certificate eligibility it'll break down what area or what
your entitlement is and then same time you have to look at your county to figure out what the loan
limits for the va is in that area because you could say in the dmv area you could probably look
at like 1.2 easily yeah depending where you are and if you're looking for obviously um an investor
friendly agent um myself personally i own 17 units multi-family in the washington dc market and then
brian obviously does he's done hundreds of deals around here so uh definitely reach out to either
of us at any point uh if you have any interest and then as far as uh like va streamline refinancing
is that similar that's pretty similar to fha streamline right correct yeah i did that last
year went from when i bought my house in 2018 i could say i bought it at a 4.75 interest rate okay
during the pandemic i refinanced to a 2.25 wow and well so i think another thing since i said
with the va funding fee if you have at least a 10 disability rating by the va you are
exempt from the va funding fee um i am a marine corps veteran and i have a 10 disability
so that refi was basically free for me wow yeah so with the va earl interest rate reduction loan
or refinance loan did you not verify your income wow yeah so it's it's a lot easier of a refinance
than most typical refinances and then we i don't know if we mentioned this but there's no pmi
there's no um mortgage insurance with fha loans or anytime you're putting less than 20 down
the banks are typically going to require that you pay an extra i have a loan i think it's for
about 490 and i'm paying like 350 per month and pmi mortgage insurance yeah so it can be pretty
significant so it's nice a nice benefit of the va loan that could make and break your cash flow
depending on what you can rent your property for actually because when i refinanced it i was only
saving 350 per month or so but that was basically the same as my pmi so i'm like oh man i need to
get rid of this pmi too that'll be a nice well the biggest thing about removing pmi too now you're
putting more money into the actual loan rather than just mortgage insurance mortgage insurance
is completely separate from your principal and interest yeah as far as time time frames for
closing on a va loan what are we looking at because i know a lot of times if you're using like
a credit union or different you know slower big national banks you know sometimes it can be like
45 days to close a va loan which in any market is like kind of a long time right for us we as long
as we have all your borrower documents in ahead of time more likely before you get under contract
we can close you under 15 days because all you will be contingent on is on your appraisal and
title yeah that's that's pretty fast that's like that's like a cash offer exactly some people it's
like you know those cash buyers all right two week closing and then let's say you you move out of
town like a lot of times in the military you know obviously you might get transferred so i mentioned
earlier you have to your intention has to be to live there for 12 months but if you not if you're
not able to for whatever reason you know you can keep it you can still rent can you you're
allowed to rent the property out i'm assuming before the 12 months or if you're if you're active
duty and you get a pcs a primary change of station or you have orders to go somewhere else you are
allowed to rent the property while you are away and that also allows you to buy another property
using the va loan again at your new duty station yeah which is important and you can use the
va loan twice or more more than once multiple times however there is a catch to that because
it's it's all about how much your entitlement and eligibility yeah the va is so so if you're
basically entitled to let's say a million dollars and the first property buy is like 750 you're
then your next property can only or the va will only loan you that remaining 250 250 000.
Okay
okay so yeah so it's not like there's a slight catch to it it's nice that you can use it multiple
times right but the best way to get out of there the loophole is to refinance your va home into
a conventional mortgage yeah your rate might be slightly higher but then you can use zero down
which is your better i mean the best benefit yeah and that that's if you really want to
get you know start building your multi-family portfolio while you're working in the military
or whatever it may be that is a great option you know buy buy a four unit live there rent it
out after a year you know maybe you refinance it and then repeat the process over and over again
and actually i just want to add on this is a tip that i get for my active duty veterans or
active duty military service members if you are eligible to get bah basic housing allowance
you're getting paid to buy a property basically and if your goal is to rent it out in the future
you're getting double pay you're getting paid to have a property and then you're moving on to
putting tenants in it or say if you buy like a three bedroom home and rent out two of those other
rooms to your your boys or whoever your friends other service members then you're getting
triple pay that triple pay i mean what's that i thought double pay was nice but triple pays
i mean exactly that's like a no-brainer that's pretty much it and if you have any questions
or you're looking to do this um definitely reach out to us and i just want to leave you
with this this one quote that a multi-family investor was talking about he said you know the
law of the first deal this guy michael blanc once you do your first multi-family deal it opens
up this whole world of multi-family investing and within three to five years what he's seen is a lot
of people become financially free you know through multi-family investing and if you're looking you
know not only to do these types of deals but also if you're looking for a one-on-one mentor like i
said i own 17 units and i'm looking to mentor you know different different investors and also agents
nationwide so definitely reach out to either of us for the va loan 100 coming from marine corps
veteran investor myself i only own one rental unit currently but i'm looking to learn more from jeff
there we go all right talk to you guys later bye
Sell your Home for a $5000 flat Fee Full service Soldier to Soldier
