Can You Buy a Multifamily Home With a VA Loan?

The VA loan program provides a valuable homeownership benefit for eligible service members, veterans, and surviving spouses. While often associated with single-family residences, these loans can also facilitate the purchase of multifamily properties. Utilizing this benefit for a multifamily home can offer unique financial advantages, setting the stage for potential income generation.

Basic Requirements for Multifamily VA Loans

A foundational requirement for using a VA loan to purchase a multifamily property is the borrower’s intent to occupy one of the units as their primary residence. The borrower must typically move into one of the units within 60 days of the loan closing.

VA loans are specifically available for residential properties containing up to four dwelling units, such as duplexes, triplexes, or fourplexes. Properties with five or more units are categorized as commercial real estate and do not qualify for a VA loan. However, a special “joint loan” option exists for two or more eligible veterans, potentially allowing the purchase of properties with up to six units.

To qualify for a VA loan, borrowers must obtain a Certificate of Eligibility (COE) issued by the Department of Veterans Affairs. The property itself must also meet the VA’s Minimum Property Requirements (MPRs), ensuring it is safe, sanitary, and structurally sound. These MPRs apply to all units within a multifamily dwelling, not just the one the borrower intends to occupy, and mandate features like functional utilities, adequate roofing, and separate, self-contained units with their own kitchen, bathroom, and entrance.

Financial Qualification with a Multifamily VA Loan

A significant financial advantage of using a VA loan for a multifamily property is the ability to factor in projected rental income from the non-occupied units to help qualify for the loan. Lenders typically consider a percentage of this potential rental income, often around 75%, to offset the mortgage payment and contribute to the borrower’s qualifying income. A VA-approved appraiser will provide rental estimates through a market analysis, which lenders use to determine the reasonable expected earnings from renting out the additional units.

While VA loans generally do not impose a maximum loan amount for eligible borrowers with full entitlement, county-specific loan limits can influence how much can be borrowed without a down payment. For 2025, the standard county loan limits for multifamily properties are approximately $1,033,000 for a duplex, $1,248,500 for a triplex, and $1,550,000 for a fourplex. The zero-down payment benefit remains a core feature of VA loans, extending to these higher loan amounts for multifamily properties, assuming sufficient entitlement.

A one-time VA funding fee is typically assessed on VA loans, which helps sustain the program for future borrowers. The fee’s percentage varies based on factors such as the loan type, whether it is the borrower’s first or subsequent use of the VA loan benefit, and the amount of any down payment. For 2025, these fees generally range from 1.25% to 3.3% of the loan amount, with higher rates for subsequent uses or no down payment. This fee can be paid upfront at closing or rolled into the total loan amount. Veterans receiving VA disability compensation or those with a Purple Heart are typically exempt from paying the VA funding fee.

Applying for a Multifamily VA Loan

The process of applying for a multifamily VA loan begins with finding a lender experienced in VA financing, particularly those familiar with multi-unit properties. Obtaining pre-approval is an important early step, as it provides a clear understanding of the maximum loan amount for which a borrower qualifies.

For pre-approval, lenders will typically request various financial documents, including a Certificate of Eligibility, proof of income such as pay stubs and W-2s, recent bank statements, and information regarding credit history and existing debts. Once pre-approved, the search for a suitable multifamily property can commence, focusing on those that meet the VA’s property standards and the borrower’s occupancy intentions.

A VA appraisal is a necessary step in the loan process for multifamily properties. This appraisal not only determines the property’s market value but also assesses its compliance with the VA’s Minimum Property Requirements and evaluates the potential rental income from additional units. After the appraisal, the loan moves into underwriting, where the lender thoroughly reviews all documentation to ensure compliance with VA guidelines and their own internal lending standards. The final stages involve satisfying any remaining conditions, formal loan approval, and the closing process, where all necessary documents are signed and funds are disbursed. Following the closing, the borrower must fulfill the owner-occupancy requirement by moving into one of the units within the agreed-upon timeframe.