Just refi'd on Primary, do I have to wait 6 MO to buy another?

[Toby Thompson]

I just refi'd on my primary home from a VA to a conventional mortgage (to free up VA loan for future purchase) and took out a simultaneous closing HELOC. I may elect to move school zones within the next year but don't want to wait until the last minute to get the home I want. I spoke with a Loan Officer today who advised nobody would touch me for at least 6 months since I just closed on a primary home refi- he advised it should have been closed on as an investment loan. I disclosed to underwriting of refi that I wanted to get out of VA loan in case interest rates went up in the next year or so and I decided to move and keep current primary home (as rental). I still live in this home with my family and have for 5 years and will continue to live here for some while, I just want the flexibility to move if I find need to prior to 6 months. Am I locked in for that long? Are there any creative workarounds that anyone has used in the past? What else am I missing?

Thank you in advance for any/all help and advice!

[Chris Mason]

If something unforeseen comes up, you can get another primary residence a month later. 

Real life example, Oakland where often the real estate is 100+ years old:

- Seller disclosures on property A say there was some mold stuff that has since been remediated, invoices and all. 

- Appraiser notes that it appears there was some mold stuff. The above documentation satisfied the underwriter as well as the homebuyer that this was evidence of historic mold that had been remediated, not current/active mold, homebuyer closes and moves in.

- Pregnant wife starts feeling unusually sick almost immediately, moves back into old apartment, immediately feels only "normal" pregnancy sick, refuses to enter house citing the health of the baby (good mommy).

- Hubby naturally follows pregnant wife back to the 1br apartment (good daddy).

- Re-remediates mold stuff (turns out the sellers hired a shoddy/cheap outfit to do the work originally). 

- So we have 3 separate sets of documentation that ties this all up: seller disclosures, appraisal, and the paperwork from this re-remediation. 

- By this point wifey is in the tail end of her 3rd trimester, obviously no one is moving anywhere at this point except onto a hospital bed once in labor.

- They rent out House A to cover the mortgage, 12 month lease. 

- Wife has baby, apartment too small, no fault evictions in Oakland are a pain in the butt.

- They purchased another home with an owner occupant loan and 5% down a few months after closing on their first, about a half mile away (job transfer to other side of the country = that exception is granted on a routine basis, it being the exact same neighborhood makes this unusual).

- Underwriter would have been within reason to ask for a birth certificate to line the date of that up with the rest, but in this case elected not to.

Note the unusual circumstances surrounding this. Great care was taken to document and package the submission for underwriting with the exception request, resting upon the fact that this was all unexpected/unforeseen/unavoidable. And of course little old me was compensated for my services both times. :)