VA loan or Bank Loan

[Kirk R.]

Thinking about purchasing an investment property.

I can get a VA loan that will buy up to a quad without any money down up to about $125k. Loan would be at about 4 to 4.5%.

I can get a bank loan with 20% down. Only have about $10,000 cash so only go to $50,000 on the property. Bank loan through my credit union @ about 4 to 4.5% with a shorter time span to pay back.

Questions:

1. If I use the bank loan, the amount I would qualify for on the VA loan would go down? I have to have a two year history before they would count the rental income??? If I did the VA first then the bank loan would still just look for the 20% down?

2. Make the most sense to use the VA loan first and then the bank loan after that?

3. Is 3 to 6 months reserve the right amount to have on hand?

4. Try to wholesale and then have the fall back plan that I can buy it myself if I can't find buyer....although VA loan has pretty strict condition requirements.

What else should I consider? Not the easiest to find a quad in the area.

Thanks for the input.