Vet! 90% disability! 811 CS! Banks still wont lent!

Private Lending & Conventional Mortgage Advice
6yFollow

Vet! 90% disability! 811 CS! Banks still wont lent!

Christopher Scott
Member since 2020 路 2 posts 路 0 votes

Hi, they names Chris, i need you guys professional advice and consideration.

MISSION: House hack, BRRRR strategy in the south california area (murrieta or san diego)

STATS:

-25 y/o military vet first time home buyer

-811 credit score

-10k cash

-90% disability ($1800/month)

-full time student using gi bill

MAIN CONFLICT: Ive spoken with re agents and lenders in the past and they say that because i dont have "taxable" income my DTI is off and BANKS wont approve my VA home loan and that i need to find/hold a job for 2 years worth of paystubs proving minimum 30 hours per week....or bring 60k to the table cash.

SIDE NOTE: Im getting info from the local re agents that multi family homes on the low end are 600-700k+ 馃槻.

What are your thoughts on hard money loan programs/private lending for rental properties for my current situation? will i be able to bypass those inital dti hurdles with this option if i happen to use the monthly cash flow from other non taxable sources (gi bill, disability) to get the ball rolling until i have tenants?

I need advice on the best way I can accomplish the aforementioned objective and live rent free.

what are my options and what would you do in this situation?

tough cookie i know.

0Reply
7 views

6 Replies

Jump to latestLatest
  • Matt M.
    Specialist 路 Easton, PA 路 Member since 2018 路 1k+ posts 路 2k+ votes
    6y

    @Christopher Scott

    Everything else aside, it looks to me that you only have about half of what you鈥檇 need for 3.5% down at $600k.

    Good luck and thanks for your service!

    0Reply
  • Christopher Scott
    OP
    Member since 2020 路 2 posts 路 0 votes
    6y

    @Matt M. i thought va was 0 down

    0Reply
  • Matt M.
    Specialist 路 Easton, PA 路 Member since 2018 路 1k+ posts 路 2k+ votes
    6y

    Ah yes, I missed that part. 

    0Reply
  • James Allen
    Member since 2018 路 40 posts 路 40 votes
    6y

    Chris, it's going to be very difficult to house hack with the VA disability payments alone. Some will take your untaxed and multiply it by 1.25, or some similar number, to give you an estimated taxable income. However, at that rate, you are still going to have a very difficult time finding funding for a 600k plus multifamily.

    Another thing to consider is that VA lenders will often not lend on the 2-4 family homes that allow you to house hack. 

    My recommendation is to rent and put some more money away for a down payment. Find yourself an out of state multifamily to brrrr and then rinse and repeat until you have yourself in a better position to take on the VA loan. Maybe even do a few flips to get some more cash in your pocket.

    0Reply
  • Bob ReinhardBusiness Member
    Lender 路 Patterson, NY 路 Member since 2017 路 488 posts 路 186 votes
    6y
    Greetings.
    1. Addressing only the hard money solution possibility, as a lender I do not lend on owner occupied properties. I will add that I am not the exception to any rule.
    2. Why not speak with a mortgage banker who knows the money market business instead of an agent who knows a market of homes.
    3. Thanks for protecting us !

    Much success !

    [email protected]914-861-5501
    0Reply
  • Marc Winter
    Real Estate Broker 路 Northeast PA 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y

    @Christopher Scott,

    First, thank you for your service!

    In this scenario, you are holding the wrong end of the gun:  you are chasing the money when you should be hunting a great deal.  Then the money will chase you.

    Find someone to partner up with, someone that has the funds and credit to put down on a conventional type loan. 

    That would save your VA loan for another day, give you experience in the process, and have a good foundation to build on.

    Good luck!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free