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Updated about 1 year ago on . Most recent reply
Partnering with VA Loan with Father on a Deal
I just found a great deal in my area involving an VA loan assumable mortgage.
Before I even get to that, I was wondering if anyone had any experience or know of any similar scenarios where I would be able to partner with my father on a VA loan. We'd been expressing wanting to partner on a deal, but need a little more education on our options.
As background, he used a VA loan mid-last year and intends to stay there for a while. Because of that, my first question is.. is it even possible to be able to partner with him since, from all the posts I have seen, it seems like he would need to be there for owner occupancy. Does it not matter if I am also on the mortgage—I live there, and he does not? My hunch is that it would require both of us there, and might be the case based on my initial research. Let me know if I am wrong.
In the off-chance that the above is possible, I saw a post regarding VA loan entitlement, and I think I understand: https://www.biggerpockets.com/forums/311/topics/1150518-va-l...
Dad's house purchased @ $815k x 25% = $203k
County limit (my area): $1,149k x 25% = $287k
$287k - $203k = $84k
$84k x 4 = $336k is available for 100% VA entitlement.
The house I am looking at is around $690k.
$690k - $336k = $354k
Down payment = $354k x 25% = $88.5k
The house looks like it was bought at $450k, so I am assuming that I will need to come up with around:
$690k - $450k = $240k cash in addition to the down payment,
Bringing the total to: $328.5k for cash to seller and as 25% down-payment based on the above.
I hope I got all of the calculations correct, and honestly, the more I dive into it, the more I don't understand. Hopefully most of what I said above makes sense. :) I honestly would appreciate all insight and answers, and taking this as a learning opportunity. Thanks all.
Before I even get to that, I was wondering if anyone had any experience or know of any similar scenarios where I would be able to partner with my father on a VA loan. We'd been expressing wanting to partner on a deal, but need a little more education on our options.
As background, he used a VA loan mid-last year and intends to stay there for a while. Because of that, my first question is.. is it even possible to be able to partner with him since, from all the posts I have seen, it seems like he would need to be there for owner occupancy. Does it not matter if I am also on the mortgage—I live there, and he does not? My hunch is that it would require both of us there, and might be the case based on my initial research. Let me know if I am wrong.
In the off-chance that the above is possible, I saw a post regarding VA loan entitlement, and I think I understand: https://www.biggerpockets.com/forums/311/topics/1150518-va-l...
Dad's house purchased @ $815k x 25% = $203k
County limit (my area): $1,149k x 25% = $287k
$287k - $203k = $84k
$84k x 4 = $336k is available for 100% VA entitlement.
The house I am looking at is around $690k.
$690k - $336k = $354k
Down payment = $354k x 25% = $88.5k
The house looks like it was bought at $450k, so I am assuming that I will need to come up with around:
$690k - $450k = $240k cash in addition to the down payment,
Bringing the total to: $328.5k for cash to seller and as 25% down-payment based on the above.
I hope I got all of the calculations correct, and honestly, the more I dive into it, the more I don't understand. Hopefully most of what I said above makes sense. :) I honestly would appreciate all insight and answers, and taking this as a learning opportunity. Thanks all.
Most Popular Reply
Hey @Dave Skow, understood! I was meaning to be under the same loan(?), not necessarily being primary on the loan if that makes sense. Maybe there's a better term/word that I am missing at the moment.
Unfortunately, it looks like that deal is closing soon, and I am mainly looking now for more information on assumable mortgages. Thanks!