VA Home Loan or FHA 203k...Helpful advice needed
I'm transitioning out of the military this July, and will be taking 30 days of terminal leave in June. During this time I will have the chance to travel back to my Home of Record (Cleveland) and start checking out houses for me and my wife to buy.
We are first-time home buyers and have quite a few questions. So bare with me please. I've found a property that is listed for $79,000, but is worth at least $120,000. From what I can tell it does not need any structural repairs, just cosmetic work (bathroom, kitchen, etc). The house is certainly liveable "as-is" but I would like to update at some point. That being said, I'm stuck between 2 loans. VA Home Loan and the FHA 203k streamline.
- I know the VA Loan does not allow aid in repairs but since the house is good "as-is" we could refinance 6-12 months down the road and use the equity in the home to pay for the upgrades?
- Now with the FHA 203k i'm worried about the time frame I have, since I only have 30 days before I separate. Buying the home listed for $79,000 and tacking on $10-15,000 for rehabing costs (estimated) the likelihood of having the repairs done before we officially move down there are kind of slim. So having them done once we move in seems more realistic.
My whole goal is to use our first house as a jump start to a career in flipping homes. We only plan on staying at this house for approximately 2 years, selling the home and using the profits as a down payment for our next home and a rehab property. I just don't know the best route to take. Any insight or advice would be greatly appreciated!