What Loan type should I use

1 Reply

I'm looking to move to a new duty location. I am fortunate enough that the home I purchased here gave me a decent profit. I'm looking to buy some form of multiplex and am wondering if it smarter to go conventional and put the 20% down or use the VA loan with no money out of pocket pay the funding fee and have the money available for a future purchase? I only plan on staying in the home for a year max before purchasing a second property any benefits or drawbacks from each would be appreciated.

@Andy Danna I would recommend that you be very careful with the VA loan. The issue with the loan is that you typically are paying market price/top dollar, so any cash flow would be minimal. I think it makes a lot of sense for folks who want to house hack in a nice area and reduce their cost of living, but it can sometimes push people to buy a property that isn't a great deal just to use the financing.

Why not run both scenarios through a spread sheet on any deal that you underwrite and let the math give you the answer?

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