Active Duty...VA out of question, need help. Not Pro Yet...

[Jahmar Childs]

So I recently purchased a "home" in Illinois, for me and my family with the VA loan, and I am renting it out until I finish my service which is 1 1/2 years in Salt Lake City, UT. By the end of the year I would like to have either my first flip, or my second buy and hold property under my belt. I have to advise, i do not have funds to support this but I will continue to gather and try anything within reason as necessary. I am just starting out I might add, but I am looking for any advice that would help me. any suggestions? Thank You BP

[James Vega]

Concur with Rob above. 

Did you ever live in the house in Illinois? If you used the VA loan to purchase the home in Illinois but never lived in it then you probably committed some sort of mortgage fraud. Your intent to eventually live in it is most likely not kosher at all. I would be very careful in pursuing additional loans on your VA entitlement like Elizabeth has done until you are physically in the house.

VA loans are a great program for us Vets, but misuse/abuse of the program can lead to very severe penalties. Its OK to rent out a VA home...but only after you have lived in it, not prior to.

If you did live in it, then all above is moot..rent away. 

If however you only intent to live in it some time in the distant future you are running a pretty serious risk of being put into the hurt locker. I would refinance out of the VA loan into a conventional product ASAP, even if it involved bringing money into the deal.