Rental Property Investor · Seminole, FL · Member since 2016 · 11 posts · 1 vote
Hi everyone,
As the title states, I am looking to purchase a 2nd home that could either be used as a new primary residence or a buy/hold rental. My main concern is working around VA occupancy rules. Ideally, the 2nd home would be a larger home or a multi family that we could move into (Me, my wife, and infant child). If that were the case the original home (VA loan) would then be used as a rental.
What are my options for this type of loan? Would it be best to refinance the VA loan into a conventional and then reuse the VA loan? Is an FHA loan possible to use on the 2nd home? A down payment would be possible but would like to keep it as low as we're able.
It would be great to hear from some experienced investors who have been in a similar situation.
@Corey Collins If you have enough equity in your 1st home you could refinance into a conventional loan to free up your VA entitlement for the 2nd home.
@Corey Collins If you have enough equity in your 1st home you could refinance into a conventional loan to free up your VA entitlement for the 2nd home.
@Corey Collins I am assuming you are going to be moving within the area. You can use FHA to purchase, but the rental income from the 1st can't be used to qualify. The other thing to keep in mind, is that there is a good/valid reason to move. All the agencies are clamping down on low down payment owner occupy loans being used as a means to buying investment properties.
From my understanding I would be able to apply for a FHA loan (2nd loan) even though my current loan is VA. To your knowledge, is that correct? If I were able to acquire a FHA loan I would use the 2nd property as a primary residence and then rent out my current VA loan home. I have lived in this home as a primary residence for one year.
Does it sound like I'm on the right track? If not, please feel free to let me know.
From my understanding I would be able to apply for a FHA loan (2nd loan) even though my current loan is VA. To your knowledge, is that correct? If I were able to acquire a FHA loan I would use the 2nd property as a primary residence and then rent out my current VA loan home. I have lived in this home as a primary residence for one year.
Does it sound like I'm on the right track? If not, please feel free to let me know.
Thanks!
Hi Corey, what type of financing did you end up going with?