VA – Two Veterans Buying Up to 6 Units + a Business Unit – Yes, It’s Possible!

Question:

If 2 veterans want to buy a multi-unit property together, can it ever exceed 4 units?

Answer:

Yes, under VA guidelines, two veterans purchasing a property together may purchase a residential property consisting of up to six family units (the basic four units plus one additional unit for each veteran participating in the ownership).

Standard Limit: The basic entitlement allows for a property with up to four family units and one business unit.

Joint Ownership Exception: If a property is to be owned by two or more eligible veterans, it may consist of four family units plus one additional unit for each veteran participating in the ownership.

Calculation: Two veterans may purchase or construct a residential property consisting of up to six family units (4 basic units + 1 for Veteran A + 1 for Veteran B).

Business Unit: The property may also include one business unit in addition to the residential units.

Ineligibility: If the property contains more than four family units plus one unit for each veteran owner, or more than one business unit, the loan is not eligible for guaranty.

Occupancy: At least one veteran borrower must occupy one unit as their residence. Chapter 04. Credit Underwriting

Summary for Your Scenario: Since you have two veterans buying together, they are eligible to purchase a property with up to six residential units (plus one potential business unit) using a VA loan. This is a unique exception to the standard 4-unit limit found in most other loan programs.

Important: Not all lenders automatically offer the joint 6-unit VA loan because they cannot sell it to GNMA. You must ask specifically for this product and confirm that they’ll handle two veterans combining entitlements.

Reference:

Chapter 07. Loans Requiring Special Underwriting, Guaranty, and Other Considerations

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