All Forum Posts by: Account Closed

@Adam L. Right, the strategy is not a guarantee and there are risks like you have mentioned. I actually found multiple people on BP that has went through this route, so I believe it is possible. I'll definately do more research before making any decions. Thank you.

Hi, I'm an active duty military, separating soon, and new to real estate.

Can you someone at my scenario and see if it would work out? 

Buy a house for $200K using VA loan with an interest rate of 4.2%.

Live in it for 1 to 3 months, and use IRRRL to get rid of occupancy requirement (IRRRL rate is 3.999% right now)

Turn the house into a rental property.

And lastly, use the VA entitlement leftover or the conventional loan to buy my primary home?

I'm guessing all these could take place in less than three months (I already found my tenant: my parents).

However, I saw that the banks usually want a 'history of mortgage payment' for filing IRRRL, but I also read that I could shop around and eventually find one that would work with me.

Any ideas, feedback? Thank you!

@Brie Schmidt

Hi, I know the VA loan has to be for a primary residence (which I will be using for my first house), but doesn't the conventional loan not have an occupancy requirement? I hoped to use the conventional loan for purchasing an investment property as soon as I close on the VA loan. Is this possible?

Hi, I'm currently Active duty military and I plan on separating from the military this summer and purchasing a house using VA loan.

Even though I will be living in this house for few years while I finish college, it will be my parent's primary residence. My parents will be the ones who will be making 100% of the mortgage payment (They are not qualified to buy a house).

I also want to buy an another house for investment purposes (rental), preferably the same time frame as I purchase the first house using VA loan, or as soon as I close on the VA loan. But since the lenders won't acknowledge the payments that my parents give me to pay for the first house, is it possible to use the conventional loan with 3 to 10% down?

I'm fine with paying the PMI for the investment property since it should be covered while it's being rented out. (Right?)

I have a job lined up once I get out of the military, but I plan on working there for only two to three months and then quit to start school full time. I believe the lenders require at least two years worth of work history, but I can give them my last two years of military pay (LES) and the first couple of months of my new job. (Right?)

So ultimately, I want to buy two houses within two to three month time frame while I could provide my income to the lenders. Any advice? Buying with VA loan first and conventional next is logical, correct? Do I need an LLC?

Thank you in advance and I really appreciate it!