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VA Residential Lending Benefits Multi-Unit Purchasing

The iServe Blog

VA Residential Lending Benefits Multi-Unit Purchasing
By Michael Macari, Chief Communications Officer, National Asset Direct

To understand the benefits of the VA Home Lending residential mortgage program is to fully understand just how far-reaching they really are.
Dispelling the myth that VA benefits are complicated or restricting in their scope, one company is out to demonstrate that VA Home Lending extends to multi-unit residential properties- with all the provisions and protections our veterans have to make these purchases.

It is true. Multi-Unit VA Residential Property Mortgages do come with the value benefits of normal VA lending- with a few nuances worth noting for the record.

VA loans- which are provided by private lenders, go through regular channels to get approved and funded. A veteran- retired military, active duty, veterans, reservists and National Guard, finds a home, in this case, a multi-unit residential unit.

He or she works with their local Realtor or directly through a mortgage lender (or vice-versa) and processes an application as any home mortgage loan gets processed. And assuming the vet and the property meet the criteria established for multi-unit housing, the loan is ultimately approved and closed by the mortgage lender. The VA guarantees a portion of the loan so that private lenders may provide more favorable terms to borrowers, but the VA never deals direct with the veteran consumer themselves.

John William McDade, himself a veteran and a 45-year experienced mortgage loan officer, has written thousands of VA loans. His company, iServe Residential Lending LLC, out of San Diego, California, is a mortgage lender offering VA loans. Fully one-third of all residential home loans made by this nationwide lender are VA Home Loans.

John spends much of his time circling the U.S. in the company’s “Power of VA Financing National Tour”, educating Realtors and fellow veterans alike on the unique and available benefits guaranteed to each American veteran through the G I Bill of Rights. According to McDade, only 9% of eligible veterans are even aware of these benefits.

In a typical multi-unit transaction, the rules are fairly simple. A veteran seeks, and finds a multi-unit property of one-four units. VA benefits are not available for investment properties, so the veteran plans to live in one of the units.

Multi-unit residential financing with a VA loan may have all the benefits and more of single family purchases- up to 100% financing,                      highly-competitive interest rates and no mortgage insurance requirements.

A qualified buyer may borrow up to 100% of the appraised value of the property, up to the county-wide maximum, as established by the VA. These values can be found at the VAs website at A borrower would only be required to put down 25% of the amount exceeding the county-wide limit, should the property exceed the established threshold.

Property appraisals are done by the VA, so appraisal costs are generally lower than typical FHA or USDA property appraisals.

The VA will qualify a veteran to use the projected cash flow from projected rents in their income calculations providing the purchasing veteran has at least two years’ experience as a landlord or property manager. The VA allows a buyer to count 75% of the projected rents as verifiable income if the buyer hires a property manager or property management company to manage the operations of the property- rent collection, upkeep, maintenance, etc., to ensure the continuing fair conditions of the collateral property.

Property management fees for multi-family units are generally minimal and not prohibitive in the overall costs of ownership/management.
With a shortage of starter and first-time homes available for purchase nationwide, many veterans and their families are finding that multi-unit home ownership provides them more-than-adequate housing for their families, with a cash flow that, in most cases, covers the costs of their mortgages and property insurance. With rising equity rates throughout the U.S., these investments may yet prove worthwhile options to our veterans seeking housing in today’s market.

For more information on VA home loans, visit

Michael Macari is an award-winning writer and communications professional. He serves as Chief Communications Officer for Stamford, CT-based National Asset Direct and writes nationally on housing, mortgage and related topics.. He lives in Stamford, CT with his wife of thirty-seven years, Sally, their five children and two grandchildren.

John William McDade (NMLS #239553) is a licensed loan originator in California and Washington State. John can be reached at, or 858-435-4667.

iServe Residential Lending, LLC (NMLS # 2914) is a licensed mortgage lender and Equal Housing Lender.