All Forum Posts by: Michael Osborne

I may be purchasing a new primary residence with my remaining VA loan entitlement. I just received my COE and it shows the first property (now a rental) purchased with a VA loan is using $90,083 of my entitlement. I live in a county with a $765,600 limit.

The new primary residence is $630k. How do I determine what amount of a down payment would be required in order to use the VA loan. I know 25% of the amount over your VA guaranty must be paid, but how do I determine what that amount is? I had planned to put 10% down in order to lower the VA funding fee, but not sure if that is all that I would need to put down.

Jerry, that's what I figured. We would rent the property for a year until we return. I did have some luck in the past with refinancing a rental as a primary residence with State Department Federal Credit Union. They allowed this bc I planned to move back into the property when I returned. I would use them again but just a simple refi took 3+ months and obviously not something I or a potential seller would want to deal with.

I am currently living overseas until October 2020 and have found a property I would like to purchase. The plan is to move into the property when we return to the US. Is there a lender that would finance this property as a primary residence with delayed occupancy of up to a year?

The link below is to the Veteran's Benefits Administration Circular 26-19-23. To me it is a lot of legalese. But figured someone in this forum could translate it for my current situation. I currently have a VA loan for $360k (not sure what percentage of my non-restored entitlement this ends up being) on a property I will be keeping as a rental. I plan to purchase another property in Prince William County Virginia for $700k in 2020. I would be putting 5% down so that the VA Funding fee is lowered to 1.65%. How does the amount of remaining guaranty affect a new mortgage at this point? Would I need to increase my down payment, so that I am paying 25% down on the amount of the loan not covered by the VA guaranty?

https://www.benefits.va.gov/homeloans/documents/circulars/26_19_23.pdf

I am trying to determine if it is worth paying points down on my mortgage refinance. Basically the break even point is 37-38 months and it's a property I plan to keep long term as a rental. So I see not real reason not to pay the points.

Any reasons I maybe overlooking?

Would you rent a condo to someone with only a 733 credit score? It is a Lt Col in the Army that is currently going through a divorce, income of about $132k. Rent is $2100 per month and a 2 year lease. Income wise no issue but the credit score and divorce are concerning.

I am planning to buy a new primary residence in about a year. At the time I will have 3 rental properties that have each been rented for 2+ years. I am trying to determine how large of a mortgage I would qualify for. Is there a calculator that would account for this?

Properties rent for $2350 (mortgage $2200), $2100 (mortgage $1700), and $750( no mortgage but tax and insurance is about $150 a month). Is the calculation as simple as taking 75% of gross rent and then subtracting that to determine the monthly debt payment? So $3900 minus $3900, then I would just use my household W2 income of approximately $170k to determine mortgage limit.

I am considering refinancing my former primary residence that is currently a rental due to an overseas assignment with the USG. I plan to move back into the property in August 2020 when I move back to the US. SDFCU will refinance my mortgage as a primary residence but their current rates are 4.25% vs rates below 4% I see online. Does anyone know other lenders that will refinance as a primary residence with delayed owner occupation?

While a 2 year lease does lock me in as a landlord, it locks the tenant in as well. As an overseas landlord, havig less of a hassle finding new tenants and dealing with turnover has been worth it to me. Especially considering agents charge a months rent to place a tenant whether it be one year or two. In an increasing rent environment it doesn't look that great but it would if rents were to fall.

Thanks for the replies. The plan wasn't to raise rent during the current lease, not sure if that would even be possible anyway. Was more wondering what's a reasonable amount to increase the rent once the time comes without having a high risk of tenant turnover. I do typically give a $100 a month discount for a 2 year lease, so value longer-term tenants.