VA Certificate: How To Use The VA Certificate To Buy A Home Every Year
November 18, 2020
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Key Takeaways:
- VA Certificates makes it possible to have free housing and homeownership if strategically used to buy a residential home with up to four units
- You can buy one new property PER YEAR with up to four NEW units EVERY YEAR for the rest of your life without having to sell your existing property(ies)
- You can legally reduce, defer, or eliminate your tax liability on the money you make to achieve tax-free wealth and get richer, faster
The VA Certificate is a byproduct of your service to this country. The military trains you to prepare constantly so you stay ready for any mission. You have a team established and you have to trust your team. Soldiers, both active duty and veterans, are usually mission-driven men and women who look at life as a challenge. And, to whom much of this challenge is given. For those who rise to the call of duty much is given as a result of your 3 C’s: sacrifice, service, and structure. One of the most powerful benefits you are given is the gift of the Veterans Certificate (VA Certificate). The single most important piece of paper, which is form dd214. It can unlock the wealth to build your financial future.
Veterans (VA) Certificate
Your veterans (VA) certificate is the veterans’ key to nontraditional wealth. If you purchase a residential property with it every year, you can build generational wealth. The certificate is the key to legacy living. If you are looking to leave a legacy for your family, this certificate can help assure you have a greater possibility of that actually happening. That’s all because of the benefits that the certificate provides veterans and their families. Those benefits are both immediate as well as long term.
Unfortunately, the vast majority of our heroes, our veterans, and their families, fail to realize the insane amount of leverage this VA Certificate provides for you to have and what it affords you the unique opportunity to be able to do. There are three strategic advantages to building this long term, generational wealth and legacy living the VA Certificate can provide you if you are a veteran.
Here are the three biggest benefits of using your VA Certificate to buy a home, investing in real estate with no money down, and generating passive income in one fail swoop.
Advantages of the VA Certificate Home Loan Program
The First Advantage
The VA certificate provides veterans and their families are the ability to have the government put up all the money you would otherwise need to have for your down payment. This allows you to buy a house and pay nothing upfront or out of pocket. Also removes you from having to pay mortgage insurance while still affording you 2% money. Meaning a ridiculously low-interest rate, ideally under 3%. The interest rate you pay is the cost of the money you receive. It is usually based on your credit score and income. The lower your credit score and consistent, monthly income, the higher your interest rate will be. However, even with the odds of your credit and/ or income stacked against you, you can still have a low-interest rate of around 3.5%.
Therefore, with a low-interest rate, you get a low monthly payment that is affordable. Your monthly mortgage can be paid for by your BAH monthly payment. This will allow you to own a home for no money down AND no money monthly you pay for the mortgage if you can get your mortgage payment to be equal to or less than your BAH payment you receive monthly (NOTE: You must be enrolled in an educational institution to qualify for this BAH payment, which is your education benefit provided by the Department of Veteran Affairs).
The Second Advantage
As if free housing and homeownership wasn’t a sweet enough deal, the fact that you get to also renew your eligibility to use the certificate every year for the rest of your life is a gravely underused advantage it provides and the little known secret to veterans and their families.
The Third Advantage
Tremendous tax benefits. Let’s face it, no one voluntarily likes paying taxes, let alone paying anyone a cent more than you legally have to. The reality is that your first business partner is the government, so for most people, including veterans, you have to pay them. This payment to them comes in the form of taxes.VA Certificate you to have the unique ability to defer your taxes as long as you hold the property for at least 2+ years.
You can continue to defer your taxes and effectively have no taxes to legally pay as long as you continue to purchase more and/ or improve the property using your certificate as leverage and your source of financing. Sound too good to be true? It’s not! You literally don’t have to pay long term capital gains tax if you live in the prop for at least two years and don’t have to pay short term capital gains tax if you live in the property for just one year and one day!
So there you have it, the icing on the cake of not only not having to put any money down to purchase a property, since the government pays this for you. You’re also not having to pay a monthly mortgage or rent since your monthly BAH payment and/ or rents collected from tenants are paying that cost for you. And, you’re not having to pay taxes on the money you make through this entire process if structured correctly so you can legally reduce, defer, or eliminate your tax liability to achieve tax-free wealth through real estate investing plus a consistent monthly cash flow with long term gains and infinite returns for years to come.
Benefits of buying a home as a veteran using your Certificate of Eligibility
As you should start to see, there are many benefits to buying a home as a veteran. If we had to summarize the benefits into just one word you want to remember, is leverage. You can purchase property using your VA Certificate including for no money down EVERY YEAR for a residential property, including multi-family up to four units. This also means you can “house hack”. Also, live in one of the units and rent out the other three for passive income while you live “rent and mortgage-free” in your own housing unit. All of this can be done strategically so you can start having your tenants pay for your unit’s rent plus pay down your principal balance on the loan.
The no money down purchase power you have as a veteran is huge leverage primarily when using it as a first time home buyer, although you can also use the certificate to refinance an existing mortgage on a property you already own. The process is still very simple although the VA tries to complicate it to protect you amassing the full potential of what that certificate can provide veterans and their families. It can take a bit longer to close these types of loans, but it’s possible even on a daily basis.
If you are looking to be a landlord buyer either now or in the future for the long term consistent monthly income and financial freedom it can provide you, this is especially gold. We armed you with the information you need to buy a home with VA Certificate. The next step is to take action! So what do you do now?
The process can be super simple.
Such as the one we outlined below that we use for our Veterans working with Imperium Enterprise:
- Get educated on the advantages and uses of using your VA certificate. If you are reading this blog through to the end, you have completed this step.
- Get your Certificate of Eligibility (COE) from the Department of Veteran Affairs (form DD214). If you lost or misplaced it, you can also request a copy online. You will need to have this in hand to provide your mortgage broker before they can close the loan for you to prove your eligibility
- Get pre-approved for your VA loan by working with a licensed Mortgage Broker that specializes in VA lending.
- Find a real estate firm that specializes in the distressed properties market to help you find a property to purchase. To get the best bang for your buck, you want to purchase a property that meets these three basic criteria:
- Has between 2 and 4 units (multi-family). Not a single-family home so you can live in one unit and rent out the other units to create additional income for yourself and/ or cover the cost of your mortgage.
- Priced under market value and needs light, cosmetic repairs
- Will have equity in it at the time of your purchase. Equity is when you buy a property for less than the property is actually worth. For example, if the market value is at $350,000 for a particular property and you acquire that property at $250,000. You have acquired an asset that has $100,000 of equity (free money for you) in it.
- Close the transaction and in one single transaction, you can officially become a homeowner, landlord, and real estate investor all for no money down.
Short sales
A great market for these types of properties is short sales, meaning selling properties that are facing foreclosure as distressed sales. These types of properties, especially if they need repair work, have historically been sold at a price that meets the above three criteria provided as residential 1-4 unit properties, under fair market value, and with equity. Short sales provide you a one-stop-shop for the type of properties to target to get the biggest bang for your buck using your VA certificate to buy a home.
The choice is yours!
Ultimately, the choice is yours. We challenge you to accept the mission of financial service. You already exude the qualities of a successful entrepreneur and real estate investor. Simply by those 3Cs we mentioned earlier being: sacrifice, service, and structure. You’ll absolutely need to call on all of this training and use it when embarking on this new endeavor.
Whatever you do, just start to do at least this today. Start by deciding how you want to use the certificate. Are you just trying to purchase a primary residence you will live in? Do you want to be an investor and invest in real estate to build and protect your wealth while creating a legacy and fully leveraging your purchase power to capitalize on this opportunity to continue being the hero in your home and personal finances as you were in service for our country and civilians? You own the ownership of this opportunity to yourself and your family as a result of your service to this country. Which is it for you? Still undecided? That’s what we’re here for!
At Imperium Enterprise, we have an affiliated Veterans Recovery Program. It can help you through each of the above steps and processes. Your one-stop shop to helping you secure all of your real estate needs!
Call Us Today!