Multiple houses through VA loan

[Nathan Goff]

Recently bought a house using the VA loan. I'm thinking of refinancing through a different lender so I can use the VA loan to buy another house. Does anyone have more info on this? Can this be done? Thanks!

-Nate

[Nathan Gesner]

Originally posted by @Nathan Goff:

@Nathan G.

I might be confused. What's the problem with a zero down payment if the morgage is being paid off?

I also just got off the phone with a VA loan officer who told me I'm qualified for an additional VA loan but it must be greater than 144k and the new house must be my primary residence. So I can use the first house as a rental unit.

If I wanted to refinance I would have to sell the house, the VA loan wouldn't allow a second loan through refinancing unless I sold the original house. ( Doesnt seem to make sense to me but ok.)

The problem with a 0% mortgage is that you're 100% leveraged. If the market drops and you have to sell, you'll be stuck selling for a loss. I have friends that purchased with 100% VA financing prior to 2008. When the market tanked, some of them saw values drop over 50%. If you can rent the property out and hold onto it indefinitely, the market will eventually recover and you'll be OK. What if you can't?

I think some information is missing from your scenario so I'll bow out. The VA Loan officer can answer your questions about refinancing the first home and/or turning it into a rental.

The general purpose of the VA loan is to help Veterans afford a primary residence. It is not designed to help you build an investment portfolio, hence the tight restrictions.