Veterans who have purchased a home using a VA home loan may not rent the home out. However, there is another option for veterans who wish to have investment properties.
A VA borrower cannot rent out the property because of the primary occupancy rule. VA loans requires the home to be the primary residence of the borrower(s). In short, the VA does not provide home loans for investment properties.
If you are a veteran interested in a property to rent out, an Interest Rate Reduction Refinancing Loan or IRRL, may be a better option. An IRRRL does not have the same occupancy requirements as a VA home loan. An IRRL only requires the borrowers to have previously occupied the home.
A VA IRRL requires:
USAVA now offers VA IRRL on Non Owner occupied properties. Contact a loan specialist today for more information.