I hope this post finds you well. I am working on doing my first deal and was wondering how having multiple homes will affect my credit score. I am currently transitioning out of the Army (Active Duty) and want to purchase a Duplex in the Tarpon Springs Florida area to house hack. However, I want to get rolling on my first deal right away. I'm concerned that if I use an investment property loan to acquire my first BRRR that it may hinder my approval for a VA home loan in the future. My spouse is concerned that if we become real estate investors, it will prevent us from getting approved on a VA home loan when I get out of the Army next year. Is my concern warranted? Am I perhaps thinking about this whole situation too narrowly? Any input or advice would be greatly appreciated.
Rolando Santiago Jr.
@Rolando Santiago Jr it's more your debt to income ratio that will potentially be a limiting factor here, not your credit score. Talk to a lender and have them calculate your hypothetical DTI if you had purchased one property and were trying for another, and see what they say.
@Nicholas L. Thank you for your reply. I took your advice and spoke to a mortgage processor. She’s helping me get to where I need to be in order to maximize my borrowing. In a few months I’ll be in an ideal position.