Can You Use a VA or FHA Loan for an Investment Property?

No. VA and FHA loans are for a home you occupy as your primary residence, not for a straight investment property purchase. There are limited exceptions built around owner occupancy, such as buying a small multi unit property and living in one of the units, but neither program is a path to a pure rental purchase.

The owner occupancy rule

Both VA and FHA loans require you to occupy the property as your primary home, generally within 60 days of closing, and to continue living there. That rule is the core of why neither program works for buying a straight investment property with no intention of living there.

The multi unit exception

Both programs allow 2 to 4 unit properties, as long as you occupy one of the units as your primary home. The other units can be rented out, and depending on the program, some of that rental income can help you qualify. This is sometimes called house hacking. It is not the same as an investment property purchase, because you have to live there.

What happens after you move out

If you later move out of a property you bought with a VA or FHA loan, you generally do not have to sell it or refinance it immediately. What is not allowed is buying the property with the intention of renting it out from day one while never occupying it. VA loans also have specific rules around using your entitlement again, so if you are considering a second VA loan while keeping the first property, talk to me about how your entitlement works.

If you want to buy a straight investment property

For a property you have no intention of occupying, a DSCR loan is usually the better fit, in Maine or Florida or any of the other states where I arrange them. It qualifies on the property's rent rather than requiring owner occupancy. See my DSCR loans hub or my Maine VA loans page and Maine FHA loans page for the owner occupied options.

FAQ

Not sure which path fits your plans? Call or text me at (207) 615-7770 or email Travis@travis.mortgage.