All Forum Posts by: Nate D.

@Upen Patel, Thanks for your response! I'm not really sure why its 760. Maybe it has something to do with the fact that I am financing via a "second-tier eligibility VA loan"? I just thought "well, I'm over 760 so I'm good", but then I started looking into a possible HARP refi on our investment property (which would free up money and cashflow) and thought it might bring my score down to lower than 760 once the loan hits the reports.

So now I'm just curious how I should approach both loans or if I can refi first and still be able to purchase in summer 2017. I obviously want to be able to do both, but not sure if I can, or if it's advisable. The refi amount would only be 85k before closing, so I can qualify for that easily on my own. The future purchase would be 300-400k, so we're looking at both applying for that one to make sure we hit income thresholds. Just need to make sure our credit scores are good to go at that time.

@Russ Draper: Thanks for your input! Since we both currently have no debt besides two other mortgages and don't miss payments, I'm not sure there is much we can do to raise her score over the next 6 months (I don't think she needs to take out a loan to add diversity to her history) other than time. Will look in to that what else can be done though. Also, yes, I mean summer 2017. I will be holding the refinanced property long-term (yrs) as it is currently a rental unit.

Hi BP Friends!

I've got a question regarding the timing of a refinance and purchase and how my credit scores will affect my ability to obtain financing:

Background:

1. My wife will be a co-applicant in both cases

2.  I want to refinance an existing mortgage to substantially lower my payment via the HARP program.

3. I want to purchase a new home in the summer of 2016.

4. The average of my credit scores is ~825

5. The averages for my wife ~ 785

6. Broker for my future purchase needs 760 middle score for the best rates on the new purchase. The way I understand it, they will usually take the lowest middle score (likely my wife's).

Questions: What would you do in this scenario? Should I refinance now and still be good 6 months from now to purchase our new home? Or, should I wait to refinance after the purchase?

I honestly think credit score determination is a crap-shoot. 

My FICO is hovering at 830+, but I have no idea why other than the obvious. My financial situation doesn't really seem much different from the average responsible "Joe":

No revolving credit card debt, but about 50k credit available

Oldest credit card in use (out of 4) is about 10-12 years.

No other debt besides two mortgages on rentals; obtained in 2008 & 2010

Never late on any payments

About 17 years of credit history during which I've had several signature, auto, student loans (all have been paid off).

**Maybe it helps that I have at least a few years since my last big purchase/mortgage loans too.

@Jerry Padilla, Thanks for your response! I searched for and found your blog post on the same. Super informative! It looks like I meet all the criteria, so hopefully I'll be able to lock something in when I find my next opportunity! I'll keep an eye on your blogs as well! 

Thanks, @Eleena de Lisser , I look forward to a good education!

@Bryan O. Thanks for the reply. I definitely plan on calling around as I get closer to moving again!

Hello friends! Looking for any process vignettes, tips, or suggestions for finding a helpful lender to successfully obtain a second-tier VA Loan in the Northern Virginia area. I've perused the internet on this topic quite a bit and know, in theory, I should be able to obtain one. My purchase will be over the $144,000 minimum for a second VA loan and under the Fairfax County, VA maximum of $625,000, which is higher than the standard $417,000. This is where I will most likely purchase my next property. Although I don't have a COE to tell me how much of my entitlement was used on the first purchase.

Background: I have a current first VA loan in Georgia (SFH~$135,000). It was my primary residence until I moved. Its been a rental since 2012. I am currently overseas and will likely relocate to the northern Virginia area this summer (2017) where I hope to buy a primary residence (likely another SFH) with an investor's mindset to live in for 2-3 years before having to move again and convert to a rental. I hope to approach it as the investment property it will ultimately become even though I will be living in it while I am there, which will hopefully give me good cash flow/equity when I leave and it becomes a rental.

Your thoughts/questions?

Thanks!

I know, I know...everyone is from somewhere, and after browsing the introductions and posts on BP I know this is not as unique a feeling as I thought and that it shouldn't stop me from chasing my investor dreams!

My name is Nate, and I'm an active duty Army officer currently serving overseas who is looking to retire in the next 7 years or so after probably moving another 3-4 times!

If you read my profile, you'll see that I'm currently an "accidental" investor. I'll explain. In 2008 I bought my first home to live in (conventional, no money down - because I could back then). I found it usually cheaper to buy than rent in South Georgia. Then the housing market in my area crumbled. The house I bought less than a year ago (back then) was now worth 20k less than what I paid. Rather than losing money selling, I've been holding on to it as a rental ever since; covering about $100 of the monthly mortgage and whatever repairs are needed. Its not ideal and I performed no analysis in the beginning since I never planned to rent it. At least I have no other bills aside from home mortgages and can easily afford to carry it...though I feel stupid for doing so! I'll have questions on what I should do with this later!

After moving to Augusta, GA in 2010, I bought another home (VA loan, no money down). Wasn't planning on keeping that one either but what the hell? There's something sexy about owning property and giving people a place to call home. Luckily I cash-flow about $120 per month, but if I do a proper analysis, I'm probably losing money on this one too since I did not account for cap-ex or other expenses. At least I don't have to touch what I earn from it.

Anyways, I want to change all that. Loading up on knowledge and learning from veterans, books, podcasts, etc, gives me the confidence I need to do it right and do it well. I'm saving what I can while serving overseas (shooting for 50k by summer). We'll see what I can do with the total on the ground back in the States...wherever I end up (maybe Northern VA)!

I plan on looking at our next home (single or multi-family) analytically to buy it right, so when I move again, I'll be happy with the outcome and cash flow and can focus on building a portfolio and part-time business that I can be proud of and maybe transition to after life on the move!

Thanks for taking me under your collective wings! I look forward to learning and giving back however I can!