Property types
Buying a two-flat, three-flat or four-flat with a VA loan
Short answer
A VA loan can buy a two-, three- or four-unit building in Chicago with no down payment, as long as you live in one of the units. With full entitlement there is no loan limit. Lenders can count expected rent from the other units if you have landlord experience or training and enough cash reserves, usually six months of mortgage payments.
Why VA is strong for Chicago multi-units
| VA | FHA | |
|---|---|---|
| Down payment | $0 | 3.5% |
| Cook County limit, 2 units, 2026 | No limit with full entitlement | $693,050 |
| Cook County limit, 4 units, 2026 | No limit with full entitlement | $1,041,125 |
| Monthly mortgage insurance | None | Yes |
| Owner must live in one unit | Yes | Yes |
Comparing with a conventional loan? Conventional loans usually need 5% or more down on two- to four-unit homes. VA vs. conventional.
Counting rent from the other units
VA’s lender handbook lets a lender count projected rent when you show a reasonable chance of success as a landlord, such as past landlord experience or property management training, and you have cash reserves of at least six months of mortgage payments. Lenders usually use 75% of the market rent from the appraisal.
What to watch for
- Each unit needs its own safe entrance that does not run through another unit.
- Garden units must meet egress and ceiling-height rules to count as legal units.
- Existing tenant leases transfer with the building. Your attorney reviews them during attorney review.
Common questions
Can I buy a four-flat with a VA loan?
Yes. VA loans cover one to four units as long as you live in one of them as your primary residence.
Does rental income count for a VA loan on a two-flat?
It can. Lenders typically need evidence you can succeed as a landlord and cash reserves of at least six months of mortgage payments.
Is there a VA loan limit for a Chicago two-flat?
Not with full entitlement. With partial entitlement, the entitlement formula applies.
Sources
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.