VA Home Loan or FHA 203k...Helpful advice needed

5 Replies

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!

We bought a fixer upper with our VA loan. We than funded the repairs through our paycheck. It really depends on what you want to do . A friend did the FHA loan with repairs and said you had to hire a certified contractor, etc, etc, and it was VERY painful. So see what works best for you!

@Cody Gentry we used our VA benefit to buy our 1st home and did the same thing. We funded our own repairs since we knew that we were going to be in the house for at least two years we spaced out our main projects and worked them around our budget. It was a slow process but it was the one that made the most sense for us at the time.

@Cody Gentry I would also go the route of the VA loan. I don't do 203k loans, but I too have always been told how difficult it is to get the work done, and it does have to be done by a certified contractor. If you have a low rate credit card it may be easier to go that route.

Medium prime lendingJerry Padilla, Prime Lending | [email protected] | 585‑204‑6923 | https://lo.primelending.com/jerry.padilla | NY Lender # NMLS #1084877

Thank you all for your input, the VA Loan seems like the most logical choice. I appreciate all of your help.