Military VA Loan HELP!!!!!!!

25 Replies

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?
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.

Nicholas,

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.

@Andre Kalkreuter. Thankyou Andre for the post I called NFCU to see about a pre approval so once all that is done I’ll call my loan officer to see what we can do. And sometimes he can squeeze me a better rate 🤭

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.

@Nicholas Hytla i would be careful though about overleveraging yourself though as you are just beginning to expand your family. Especially since you do not have enough equity to sell it. If something goes wrong with your current house with the tenants you will be in a difficult position financially on top of the preasures of a new growing family. Babies do lot take up a lot of space so I would consider staying in your current home until you have enough equity to sell it. Then either rent it out if you expect to make a good profit in monthly cash flow or sell it and put that money toward your next home.

@Nicholas Hytla

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.)

https://www.biggerpockets.com/renewsblog/how-to-use-the-va-loan-to-build-capital-for-real-estate-investing/

@Kenneth Williams Hey thanks for the question. We currently live in Virginia Beach and yes we bought a townhome essential full price cause of the VA Loan. But we realized that with a little bit of work that we could increase the value. I did pretty much all the work myself and did kitchen cabinets repainting and added finishes, added subway tiles to the front wall and back splash, added laminate through out the house, painted, and fixed up the yard and cleaned the privacy fence and painted the outside trim of the house and so on. We have not got an appraisal so we don’t know what it would be work but my estimate is about 8-10 thousand more than what we bought. Nothing to go crazy over but fortunately in the area we live in most 3-4 bedroom rentals go for about 15-1700$. My mortgage and all expenses paid will still be just under that by like 2-3 HINDRED dollars so it’s a cash flow property 👍. Lucked out. Rents are about 1%. We just got approved for 250,000 from working with a loan officer to purchase our next home which is move in ready and will be our next residence for a few years the goal is to buy a duplex in 2 years an manage the property I have and learn to land lord. All of these are done with VA loans

@Kenneth Williams

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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