Limitations with VA loans

[Lee Austin]

BP,

There seems to be no clear, concise information regarding VA loans and more "case by case" scenarios that allow for turning your current home into a rental income property and using another VA loan to purchase your next home that you will live in.

There is househacking and there is the cash out refi(which is a pretty valuable asset if used correctly), but in this certain situation neither apply for different reasons. 

Maybe this fictitious scenario might spark some creativity in helping me understand any limitations from those of you who've personally experienced it or have a VA loan- both houses in Virginia Beach. It's also my understanding that you can't refinance out of a VA loan into a conv loan...?

Current mortgage has $244,600 remaining, $1,410 monthly payment. Rent potential, $1,900 minimum Appraised value: 293,000. 

New house all in: $370,000.

Is there any way around having to sell house, and I know a lot has to do with Debt to income ratio and other factors, but generally speaking and not wanting to lose a potential passive income producing asset, what options might I have?

Thank you for any responses in advance and if I need to elaborate on anything additionally to help determine I of course will.

Lee

[Patti Robertson]

Hi @Lee Austin. I'm not military but I have had military clients and am familiar with the VA loan. The limit for the Virginia Beach area is $458,850. You don't have to sell your first property to use your remaining VA eligibility for your new primary residence. You don't have enough VA left to purchase the entire home, but you can use your remaining VA and then use an FHA for the remaining balance. You will only have to come up with 3.5% of the FHA portion.

Also, it sirenwhere you heard you can't refi out a VAtp conventional, but you can. You can also refI it out to an FHA.

You need a good loan officer. Do you need a referral to one?