Should I take a VA home loan on my mothers house?

[Nate S.]

I just got out of the military, my mother just passed away recently, and I inherited it. Still in probate process, and getting my name on the title. It's being cleaned up, fixed up with new floors, painted walls etc(I have a other thread on it). 

My mother owed $50k still on the house, worth $90k. I'm paying a mortgage of $601/month and she was tax exempt because of her being disabled. Mortgage has a HAMP incentive, pay on time, get $1k deducted then by 2019 I believe $5k , totaling $10k deducted. Could get it down to like $35k, in a few years. I can assume the loan or just keeping paying the mortgage under my mothers name, while my name is on the title.

Little did I know, there is a $12k lien on the house due to credit card debt. I'm going to try to have that negotiated and just pay it off in a lump some. Even that is going to be costly.

Should I use a VA home loan on the house? I could be paying a mortgage 1/4 of the payment I'm paying now. At the moment, I don't think it will pass VA inspection standards, the porch stairs is rotten and support is broken.

I plan to rent out the house once I finish college, then buy a other property using the VA home loan for a multi-family, but can I only take out one VA home loan until I pay off the previous one? I don't know really could use as some advice, I appreciate it.

[Peter Mckernan]

@Nate S. Sorry to hear about your mother passing away. 

As for the question about what you should do with the house, and if you should take the VA loan on the property. Excluding the lien on the property from the credit card debt, just speaking for the VA loan, I would sit down with a loan professional and ask some questions. As a VA loan may be a cheaper monthly option, you may run into some fees down the line, or yearly due to the PMI of the loan. There are a couple lenders on the site that may help you with these questions @Jerry Padilla or @Albert Bui

In regards to the debt, I would talk with the credit card company and see if you can negotiate the $12K down from what it is now like you mentioned. Talk to them about the situation and also the possibility of paying off in a lump sum quickly if the amount was just a little lower.