I close on my very first fourplex next month, and I will be occupying one of my units while the other three pay for my mortgage and insurance. I used the VA loan, and upon a little bit of research, I deduced that I can afford another fourplex in the same price range. I want to strike while hot but the loan requirements state we need to intend to occupy the space within 60 days. There's also a suggestion (it's not mandatory, but it's status quo) that I must live in my property for one year before I can convert it or move. I want to purchase in six months, and the property I want to purchase is on the same block as my current property. Any helpful and relevant tips and suggestions are greatly appreciated.
House Hacking Using VA Loan
byu/Elegant-Evidence-263 inrealestateinvesting
Posted by Elegant-Evidence-263
9 Comments
Do you like committing fraud? Because that is what you are trying to do.
What would be your *legitimate* reason for moving out before a year?
The lender will ask for your reasoning on moving to a new house in the same block. What will you answer?
Should be able to make it happen if you go threw a diffrent bank. Iv done it three times but iv also waited the year each time
Nothing is preventing you from acquiring another property, but you’d need to do the next one as an investment property if it’s inside of a year. It’ll typically be at least 25% down, and the interest rate could be a little higher. But, if it cash flows, you’re good to go.
As another commenter mentioned, however, if it’s less than a year and you try to acquire a new property as your primary, that’s mortgage fraud.
Wait a full year. You are not obligated to be there one year if you have a legitimate reason, but you you will be asked to explain. Buying a place on the same street undermines your claim.
Less than one year brings unwanted attention. Just live there the full year and be compliant. Or use an investment loan for the second property.
There’s nothing wrong with moving afterwards and getting another owner occupied loan as long as you intend to live in it for a year.
So much VA abuse, such a joke.
Intent to occupy: You must certify that you intend to occupy the home as your primary residence, usually within 60 days of closing.
Minimum occupancy: The VA does not have a hard requirement that you physically live there for a full year. The “one year” guideline is more of a common practice or lender expectation rather than a VA-enforced rule.
If you move out before a year, you are not automatically in violation, but some lenders include a 12-month occupancy clause in their loan agreement. Check your closing docs.
I bought a quadplex and am currently house hacking it with a VA loan. I am living in it and at the 1.5 year mark, in 6 months or so we will be moving out. So no fraud, as they can check on that.
Congrats—that’s a huge first deal. With VA loans, intent to occupy is key; buying another in 6 months on the same block will raise red flags unless you have a legit life change (job, family, etc.). Most people wait ~12 months to stay clearly compliant, or use a different loan for the second deal. Not worth risking VA loan fraud this early.