If you’re a Veteran or an active-duty service member, you might be wondering whether a VA loan can help you invest in multiunit properties and generate rental income. The answer is yes—you can use a VA loan to buy duplexes, triplexes, and fourplexes. However, you must meet certain requirements, including living in one of the units as your primary residence.
This guide covers how VA loans work for investment properties, the rules around rental income, and what to know before buying a multiunit home.
Can You Buy an Investment Property with a VA Loan?
The VA home loan program is designed to help Veterans and service members purchase primary residences, not purely investment properties. However, you can still use a veteran loan to buy a multiunit property (up to four units) as long as you live in one of the units.
You cannot use a VA loan to purchase:
| Property Type | Eligible for VA Loan? |
| Single-family home (not owner-occupied) | No |
| Apartment complex (5+ units) | No |
| Commercial property | No |
| Duplex, triplex, or fourplex (owner-occupied) | Yes |
If you’re looking for a true investment property with no primary residence requirement, you may need to explore other financing options.
House Hacking with a VA Loan
One of the best ways to leverage a VA loan is through house hacking—a strategy where you live in one unit and rent out the others to help cover your mortgage.
Benefits of House Hacking with a Veteran Loan
| Benefit | How It Helps You |
| $0 Down Payment | Buy a multiunit property without a large upfront cost. |
| Lower Interest Rates | VA loans offer better rates than conventional investment loans. |
| Rental Income Potential | Tenants help offset your mortgage payments. |
For Veterans looking to build wealth through real estate, this strategy offers a low-cost way to enter the rental market.
Can You Use a Veteran Loan for a Mixed-Use Property?
You can use a VA loan to buy a mixed-use property—a building with both residential and commercial space. However, restrictions apply:
- At least 75 percent of the property must be residential.
- The property must meet the VA’s Minimum Property Requirements (MPRs).
- The building cannot have more than four units.
If the property does not meet these conditions, alternative loan options may be necessary.
Counting Rental Income When Qualifying for a Veteran Loan
One of the biggest advantages of buying a multiunit property is the ability to generate rental income. But will your lender count that income when determining how much you qualify for?
| Borrower Type | Will Rental Income Count? | Additional Requirements |
| First-time landlord | No | Lenders typically will not count projected rental income. |
| Experienced landlord (2+ years) | Yes | Up to 75 percent of rental income may count. |
| All borrowers | Maybe | Some lenders require signed leases or cash reserves. |
Alternative Options for Investment Properties
If you’re looking to invest in real estate without the primary residence requirement, here are some other financing options:
Conventional Loans – Require higher down payments (15-25%) but allow investment-only purchases.
FHA Loans – Allow you to buy up to four units with a 3.5% down payment, but you must still live in one unit.
Hard Money Loans – Short-term, high-interest loans used by investors for fix-and-flip properties.
Portfolio Loans – Offered by some banks for investment properties with less strict requirements.
Is a VA Loan the Right Choice for Your Investment Strategy?
A veteran loan can be a powerful tool for Veterans interested in real estate investing. However, it is important to understand the limitations:
- You must live in one of the units as your primary residence.
- Rental income may not count toward loan qualification unless you have landlord experience.
- VA loans cannot be used for purely investment or commercial properties.
For Veterans looking to start investing in real estate, a multiunit veteran loan offers an opportunity to build long-term wealthwhile benefiting from zero down payment and low interest rates.
Next Steps
Want to explore your VA loan options? Click below today to see how you can finance a multiunit property and start generating rental income.
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