Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 10 years ago on . Most recent reply

User Stats

29
Posts
3
Votes
Jarrod Rayner
  • Beaufort, SC
3
Votes |
29
Posts

VA Loan and a military transfer, How do I get another house?

Jarrod Rayner
  • Beaufort, SC
Posted

I bought a condo for 262k of my 417k VA Eligibility, I'd like to by another home at my new duty station (PCS orders). I'm trying to buy a home or two at each duty station until I leave the Military, I also am having a DTI problem. I'm trying to think of a way to clear this up without selling my house that I just bought last year. I thought that starting an LLC and transferring title could be an option, but I'm not sure if it's legal.

 I kind of wish there was a forum on BP just for us military guys, cause I can't be the only one with this problem. @Joshua Dorkin

Most Popular Reply

User Stats

2,178
Posts
1,437
Votes
Albert Bui
  • Lender
  • Bellevue WA & Orange County, CA
1,437
Votes |
2,178
Posts
Albert Bui
  • Lender
  • Bellevue WA & Orange County, CA
Replied
Originally posted by @Jarrod Rayner:

I bought a condo for 262k of my 417k VA Eligibility, I'd like to by another home at my new duty station (PCS orders). I'm trying to buy a home or two at each duty station until I leave the Military, I also am having a DTI problem. I'm trying to think of a way to clear this up without selling my house that I just bought last year. I thought that starting an LLC and transferring title could be an option, but I'm not sure if it's legal.

 I kind of wish there was a forum on BP just for us military guys, cause I can't be the only one with this problem. @Joshua Dorkin

 HI Jarrod,

Your concern seems to have two parts:

1) DTI - debt to income qualification issue - you can either bring on a spouse for more income, rent out the prior house to create income to offest the prior home's payment, or other strategies

2) VA eligibility for second and subsequent use -

- If you're in a 417k limit area and you use 262 then that approximately means you'll have 155k or percentage use of the VA entitlement remaining. 155k / 417k limit or about 37.17% of a county's entitlement left. This means that you in that specific county you could buy 0% down up to 155k and if you had a sales price over this 155k you'd have to bring in 25% of the difference. Example - 350k fourplex purchase - 155k entitlement = 195k difference X 25% = $48,750 down payment from veteran needed + closing costs/prepaids/etc to close.

Eventually you'll run out of entitlement so you'll have to strategically plan your acquisition cost values with your exit values when you plan to leave the property so that you can refinance your VA loans into FHA or conventional to "free up," your entitlement to 100% of the county limit once again.

Proper mortgage planning will be critical.

Hope that helps.

  • Albert Bui
  • Loading replies...