All Forum Posts by: Sang Yu

I used money on home improvements and pay for my kids daycare. Hard to believe, but the there are a lot of people in my similar situation who don't have 50k lying around and it would take them more than a few years to save that up.

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Originally posted by @Walter Key:

@Sang Yu If you've lived in your current home for more than a year then you can rent it out and purchase another home using VA eligibility. Depending on your county and how much of your eligibility is currently tied up...

Thanks for the tip Walter. I have $122k left in my VA eligibility. So I would be able to go and purchase another place for that amount? What happens to my first loan? Is it unaffected even though I am no longer occupying it? This is where it gets fuzzy for me.

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Originally posted by @Chris Mason:

@Sang Yu - if you have solid income, as you say you do, then saving a down payment over the course of a year or two shouldn't be an issue.

If you want to do some bare minimum stuff, live in your current place 12 months, go buy a new place that you will live in for another 12 months putting 5% down (or have a lender run numbers to see how much VA entitlement is remaining), and convert the old place to a rental right at that 12 month mark.

Eventually you will have to suck it up and realize that being a real estate investor requires that from time to time you actually save up a down payment.... But you might be able to squeeze another property or two out of gaming the system.

Hi Chris thanks for the insight. Yes I understand downpayment is the norm, but I'm just trying to accelerate getting my foot in the door to get my first rental property. I am not planning to try and buy tons of properties with no money down. Just exploring to see if there are more options. But if saving for a couple years is the only way maybe that's what I need to do.

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Originally posted by @Brad S.:

@Sang Yu I do not know anything about VA, but most of the program enforce one year residency. As for investment property loan I haven't heard of any that pays more than 80%, what do you mean by 97-3? is this a new program?

Hmm I've already lived in my current place for over a year. I wonder then if I am eligible to go out and take advantage of FHA or something similar. The 97-3 I just came across briefly on Fannie Mae site. I'm not sure of the exact requirements on it though.

1 Vote

Originally posted by @Brad S.:

@Sang Yu have u thought about living in the property for a year, you get many options with that, FHA, 5%, 90-10-10 etc..

I would consider it, but I'm not sure how that would work with my current VA loan as they have the same owner occupy requirement. What about a 97-3? Does it have the same requirement?

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@Brandon L. No I haven't. I'm still very new. Where would you to find these types of lenders?

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What about 80-20 loans? Are these very risky?

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I'm a newbie in the Sacramento area looking to buy my first SFR rental. I bought my primary residence about 15 months ago using a VA loan with no money down(Just $3k to cover closing costs). I have good credit (~750), good stable job/income, but not much of a downpayment ~$2k) What would be your strategy to secure a second rental property in the $190k - $220k price range?

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All Forum Posts by: Sang Yu

Sang Yu has started 1 posts and replied 8 times.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.

Post: Need Advice: Good credit, Good Income, No downpayment.