Retal Income/ VA Loan LTV / HELOC LTV ......

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Retal Income/ VA Loan LTV / HELOC LTV ......

Michael Dunn
Olive Branch, MS · Member since 2013 · 452 posts · 10 votes

Good Afternoon,

I have a few individual questions that I have been trying t find the correct and accurate answers to , over the weekend.

The Following Questions I have are ......

1. Is there a set period wait/time , of which you have to wait before you can claim Rental income as " Actual " income , via your taxes ? If I have owned my house as a Primary Residence and wish to then rent it out..... Can I immediately claim that Rental Income on my property , as actual Income , or is there a waiting period before I can do so ? 

And also, does this change, if the property you wish to Rent out is a former Primary residence OR if it was purchased as an Investment property ?

2. Can you get a Higher LTV if you go with a HELOC vs a Cash-Out refi. ?

I'm looking for the Highest possible LTV that I can get , for doing a Cash-Out refi.

Is a 90 to even 95% LTV possible on an FHA loan , and on a house that is your Primary Residence

3. Regarding VA loans ..... Can you get a Full 100% LTV on this type of loan ?

Thanks so much , really appreciate the help fro fellow members on here as always

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  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    10y
    Originally posted by @Michael Dunn:

    Good Afternoon,

    I have a few individual questions that I have been trying t find the correct and accurate answers to , over the weekend.

    The Following Questions I have are ......

    1. Is there a set period wait/time , of which you have to wait before you can claim Rental income as " Actual " income , via your taxes ? If I have owned my house as a Primary Residence and wish to then rent it out..... Can I immediately claim that Rental Income on my property , as actual Income , or is there a waiting period before I can do so ? 

    And also, does this change, if the property you wish to Rent out is a former Primary residence OR if it was purchased as an Investment property ?

    I have found that it depends on the broker or lending institution. Some want two years of experiences, others will use what is on your taxe returns, other will use a lease. It really depends. So I have learned to shop around.

    2. Can you get a Higher LTV if you go with a HELOC vs a Cash-Out refi. ?

    I found that 90% HELOC was possible if it was still your personal when going through Navy Federal. As for cash out refinance, the only thing I found was 25% and that was if you had less than 4 properties.

    3. Regarding VA loans ..... Can you get a Full 100% LTV on this type of loan ?

    Yes the VA loan allows you to do 100% on the loan value. If it is under the entitlement.

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  • Michael Dunn
    OP
    Olive Branch, MS · Member since 2013 · 452 posts · 10 votes
    10y

    Hi Elizabeth,

    Thank you for our reply

    Regarding the " When " on using Rental income as Actual Income ..... I'm wondering if even 3 months of showing Rental income via my Taxes would be enough to satisfy to my Lender, that it is " Steady enough " income for them to justify it .... possible ?

    And I do have a credit card currently with Navy Federal ( I am former Military ) so to get the 90% LTV on a Cash-Out refi. .... just do the ref through Navy Federal ? What about Credit Score and or FICO score ?

    And will it matter, if the current Loan / purchase on the property was done using a FHA loan ... when I initially purchased the property ?

    Thank you again for your help ,

    I much appreciate it

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  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    10y

    @Michael Dunn, @Elizabeth Colegrove is correct. Different lenders will allow rental income credit based on their own internal restrictions. Find a mortgage banker that will give you credit using the lease agreements.

    You should be able to do a HELOC on your primary residence to get to 90% LTV.

    VA loans will let you go to 100% LTV as long as the loan is within the county limit and you have benefit available to cover the loan.

    [email protected]571-200-6180
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  • Michael Dunn
    OP
    Olive Branch, MS · Member since 2013 · 452 posts · 10 votes
    10y

    Hi Upen Patel,

    Thank you for answers

    I will ask my Lender what their Internal restrictions are, regarding Rental Income " Showing " as actual Income

    How Long must I own the Property, in order to qualify for the 90% LTV via a Cash-Out refi , or is the 90% LTV strictly for a HELOC only ?

    And is there a waiting " Seasoning Period " before I could do the HELOC..... 6 months ? 1 Year? Or does this too, vary from Lender to Lender

    Thanks for you time ad help

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