So i was thinking...
I want to live in a certain area in baltimore county that has a really good school system. In order for me to di that and not pay a ton of money id have to rehab a home. Well im quite sure its illegal to sell myself a home. But my question is, will it be illegal to ask an investor to purchase /rehab a home for me and i purchase it from them using my VA loan? I see it as a win win. I get the home for a lower price and they get profits.
What do you think?
Why would you think that would be illegal?
You can get a VA loan and fix up the house. As long as you are transparent with everything why would it be illegal? Why would you hide it and give someone else money?
because deep down inside i want a piece of the pie...lol... plus it just doesnt sound right in my head. If i get someone else to sell me a home that has been bought and rehabbed i say hey if i buy it from you i want you to sell it to me on paper for 150k. They do and then give me 20k out of the 60k profit they just got from me. To me that doesnt sound right. But that would be awesome if its not illegal.
Also when using a VA loan it has to be near perfect and move in ready.
i also dont want a 200k loan. I want a loan thats less than 120k so i can pay it off sooner.
No you wouldn't be able to get a kick back as the purchaser of the property. AAll proceeds from the sale of a property will need to go on the HUD. Also an investor wouldn't want to sell a house to you and give you $20k of their proceeds when they can sell it to someone else and keep that $20k. The only option would be have them inflate the price $20k and give you a kickback but that would be illegal and probably wouldn't appraise anyway.
my reasoning was that they wouldnt know the house was there if no one told them. Well thanks for the help. Just trying have low mortgage payments
That's called fraud. From your first post I didn't understand about the part where you would be stealing $20K from the VA.
just go multi family with your VA loan.
2-4 units will pay down your loan while you live in 1 unit.
I have been following this email thread and it would appear from the surface to be fraud. To keep things on the up and up, please read the information that's available on the VA home loan website and call the helpline.
Also, I think you should take Austin's advice. This has sparked an idea in which I may use myself.
If you want a deal on a property needing to be rehabbed, go FHA 203k instead. You could get away with about 6% total out of pocket.
Just so everyone is clear... I AM NOT TRYING TO COMMIT FRAUD NOR AM I GOING TO!!!
What i am trying to do is not have to put a down payment on my home and have low mortgage payments. Im trying to think of LEGAL ways to use my VA loan and stay within the guidlines, laws, etc as well as get what i want.
Cal c. Thats because from my first post i said what i meant to say. The second one is just my thoughts and confirming that its not right.
Please pay attention to everything not just what can get you into trouble. I post here to get advice and guidance on the best way to do what i need to do, not read the obvious especially when its something that has been CLEARLY noted in my original post.
However, thanks for the useful advice.