VA Loan

[Harlan Robinson]

What will happen if I buy a property for 30K and the minimum loan is 50K that the VA will do? Will they say no? Will they give me the cash:)? Will the seller give me the Cash:)?

[Deshan Kennedy]

To answer your question, you can only get 1-3% back in credit at closing to assist with your costs of acquiring the property.  If the property can be sold at the $50k asking price and the seller agrees to give you the $20k after closing then thats between you and the seller but the seller will still have to show that the property sold for $50k and its up to them to do what they want with the money that they make from the sale of their property.  But if the property can be sold for the extra $20k, why would they give it to you if they can keep the extra $20k from the sale?  I personally don't think it will fly but anything is possible in this world.

I do agree with Jerry on this one but If you are certain that you want to use it for the benefits of the no/low down payments using the VA loan, why not use it on a duplex, triplex or a fourplex and when you want to pull out the equity you can show that the property is making money. Now you have a reason to "move out" to another property when you talk to the lender to pull out the equity. The underwriters might question why you are trying to pull the money out so soon even if its seasoned for 6 months especially if that area isn't your primary residence.

Your best option maybe is to talk to a VA Lender who works that area to find out what the regulations are for that area because you may be required to show proof on your intentions with the property especially if you're trying to refinance the property or pull equity after six months. I would hate for you to think you can do this and then not be able to. Networking with a lender because they would be able to tell you if your plan is even possible with the desired property.

This may meet you short term and long term goals of getting the most equity out after six months of seasoning. Just an option to open your options while using your VA loan to its full capacity. The more times you use your VA loan, the more questions and regulations you will fall under.

@Jerry Padilla

@Harlan Robinson