Finance your Duplex with a VA Mortgage
Yes you can!
The VA home loan program can be used to finance a duplex as long as you occupy one of the units. You’ll share a wall with your tenant but with a good tenant, using your VA eligibility for an investment property might be a great financial move. Just make sure you’re comfortable living in a home attached to another.
The most popular feature with a VA home loan is the absence of any down payment. Not only that, but there is no monthly mortgage insurance payment required, meaning your total monthly payment will be lower than other low/no down payment mortgage programs.
Letting someone else pay your mortgage is a phrase you may have heard. Because rates are still low and rents are at all time highs, the rental income can cover a good portion of the mortgage and usually be enough for the majority of the annual property taxes, insurance and maintenance costs.
Example: If you purchased a duplex for $400,000 with zero downpayment at an interest rate of 4.776 APR, your total monthly mortgage payment would be about $1,900. If the rental income from the other unit is $1,500, you are pay just $400 per month for a $400,000 property.
More good news - if you decide to move in the future, keeping the property as a rental, you can use the rental income from the property to help you qualify for a mortgage on your next property. Should you ever refinance the loan on the duplex into a conventional mortgage, you can free up your VA loan eligibility to buy another property with no down payment.