Using FHA or VA Loan to purchase 2 parcels back to back.
HI BP community,
I am looking to purchase 2 parcels. On 1 is 2 unit front and back duplex. The other one is 3 car garage and 2 bedroom 1 bath apt above. Both properties use the garages each unit gets one garage space. They share the same backyard. I just found out they are actually two separate parcels owned by the same owners. I knew they had different addresses. I was going to use FHA and live in one unit, but then found out the two separate parcels. I know typically speaking FHA or VA doesn't do one loan for multiple parcels.
I have heard that if it is on the same deed then FHA deal can be done?
Comments on this? Or any other suggestions how to use a VA loan.
Also I have VA I can possibly use. Currently in rental property lived in in for first couple years not it is great cash flowing rental property. I actually have cash out refinance in progress and we are done with paper work appraised for 450k and I owe 257k so I have good amount of equity in it. . I just been sitting on it to finalize becasue I don't have need for the cash out yet. I don't want my payments to go up until I can find another investment property to replace the income I am going to be losing. My payment will be going up about $900 a month. I am currently in 30 year fix. With refinance I am able to to get 80%LTV and fixed payment for 20 years at 4.9% interest rate, but taking big hit on payment becasue my current payment is amortized over 30 years instead of 20. Also my interest rate is currently 4%
Bottomline I can free up my VA loan eligibility if anyone knows of any more options or flexibility that VA allows for 2 parcel purchase.
Lastly we are looking to combining both parcels which shouldn't be too much of a problem and would eliminate both of these problems.
Also if given both options what would you recommend. VA or FHA. I know VA by far is the perk becasue of no PMI.
Thing to consider our...
FHA fee is 1.85 %
VA subsequent is 3.3%
That is alot on 460k purchase
What I have to bring to the table is similar since VA is jumbo loan I will still need bring about 10k to the table since I need to guarantee the amount over 417k and with FHA I will need bring about 15k for down payments
If I use VA I have to refinance and see loss of $900 rental income. The property brings in $4300 a month between both units my fixed costs are $2053 mortgage, insurance, interest, taxes per month. Not much maintenance need on average $3000 a year is what I spend on expenses. Also I would have cash on hand to invest, but again don't have something picked out yet. Also it would decrease my global debt ratio a lot when banks see that having increase of additional monthly payments of $900 after the refinance which I know the banks won't like and will be harder to use to make purchases.
Lastly I have considered doing a blanket loan and to pull equity out of one to use as down payment and have both just be investment properties. Any thoughts on this as well? Thanks!
Opinions, advice, suggestions ready go!
Cheers!