Originally posted by @Nicholas Hytla :
I currently have a VA loan with the primary lender being Wells Fargo. I have a town house that I have fixed up and lived in for less than 2 years. My wife and I are trying for another child and need a new house for the sq ft. We are looking to rent out house out due to cash flow and not quit having enough equity to sell. My question is. Can I use the VA benefits for a new loan if I already have a The VA benefits on another loan and if so.. can I use that property as a rental property or do I have to refinance?
You have a lot of flexibility with VA loans. You are given a maximum amount of loan availability and depending on the cost of the house you buy, there may be enough availability left to buy a second house. Another method is to sell the house to someone like me who buys on a VA Mirror Wrap, takes over the payments and the attorney does the paperwork to show that the payment is being covered. This frees up your debt to income ratio.
call a loan officer and give them your numbers, they will be able to tell you how high your second VA loan can be, if you need more then that, you can also do a downpayment and increase your loan amount. I just had the same question yesterday and talked with USAA.
The VA loan limits for 2018 were increased. Here is a link to the loan limits by county. Subtract your existing mortgage from that limit and that's what you have left to spend with zero down payment.
Yes you can if you have not reached your VA limit.
I have done 3 VA loans and my wife has done 2. We have also done 1 each VA IRRRL loan. We are currently out of VA limits.
Im am currently in the military and my mortgage broker and loan officers said yes you can aquire more VA loans as long as it doesnt surpass that max amount, and you met the criteria. The house has to be a primary residence for at least one year. So you can move out and get another VA loan as long as you have the funds available within the max. So for example i live in San diego and the max is 650k but i could use 300k of that on my first primary house and move out in a year and get another house for 350k.
Can you do the 2ndVA loan on a investment property ?
@Nicholas Hytla as long as you still have some VA benefit left and you met the minimum residency requirement you may use the first property as a rental and use more of your benefit for an additional (new) home.
Thank you very much , I’d thought along those line but was not sure
To answer your question. No it's not easy to get the second or more VA loans. Simply because if you have more you still have to have the income to pay the mortgages.
Since the VA just guaranties the loan, the lender is going to require reserves for each rental you own.
The good news in Texas we have more VA home loans we can qualify for. The Texas Land Board home loan. It doesn't matter if you have used your VA limits as these loans are guaranteed by the Texas Land Board.
Down side is the loan requires you to live in house for 3 years instead of the normal 1 year requirement. That's why we haven't used them yet. Another plus is for discount loan rate (Currently 3.87%) you only need 30% VA rating.
Max loan is $453,100. You can have 1 VLB home loan, 1 VLB land loan and 1 VLB home improvement loan at the same time. Once you pay off a loan it re-sets your eligibility.
As others have said here, you can certainly have more than one VA loan; however, there are a few things you have to look out for. The second loan has a requirement to be at least $144,000; if the houses are near each other the VA may not allow that (looks like you are trying to just buy rentals); if you go over your max limit then you have to pay 25% of the amount over (eg. your county max limit is 500k, you have 200k from your first place and you want to buy one for 350k. You have to pay 25% of the 50k difference.); and some other things. All in all, be aware of a couple things and rock it! Worse comes to worse you can try to get a FHA loan and only need to pay 3.5% down.
This recent blog post is helpful as well! (If you have a SUPER patient wife and the desire to do it.)
@Clifford Paul Do all of the properties that you and your wife purchased with the VA loan cash flow? If so how much do you guys aim for since you can't purchase value add type properties the VA loan?
We only have 2 VA homes out of the 5 we have purchased. Only one is a rental, the other is our primary residence. The rental cash flows $503 a month. It's our lowest cash flow property. We bought it through a relocation company for 45k under market value. I wish I could find more homes being sold by relocation companies. Apparently they don't care if they make any money on the sale of the house.
Having bought 5 VA homes, only 2 have been rentals. The other one had a cash flow of $300 a month. We sold it years ago and bought a better preforming property.
You are correct, you can not buy value add properties with VA loan. It must meet VA requirements. This makes it hard to cash flow unless you can find a multi family with a great price point. Or get lucky like we did. Also that's why we sold the other 2 properties when we PCS because there was no way to cash flow without paying the mortgage down. We didn't care to do that because we did not want to hold properties in those state's. Good news was we didn't lose any money when we sold those 2 either.
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