All Forum Posts by: Samantha Reeves

@Chris T. looks like my previous comment was deleted. Not sure why that happened. 

@Paul W. Keep in mind that the home you purchase using your VA loan has to be your intended primary residence at the time you buy the home. Just wanted to make sure it was clear that you can't use a VA loan to purchase a strictly investment property.

Hi Tierra,

I'd suggest talking with your lender regarding your plan to move out prior to a year of occupancy. Many lenders have requirements that you live in the home as your primary residence for 12 months unless there are exigent circumstances (such as a PCS) that prevent you from doing so. 

Hi Scott,

You will likely have some issues with this property requiring repair. They want you to purchase a home in move-in ready condition and one that is safe, structurally sound and sanitary. It sounds like you've reviewed the VA's MPRs but know that the appraiser also has a lot of discretion when it comes to determining which repairs will be required to ensure the home meets the 3 S's.

As the buyer you have multiple options:

1. Negotiate up front with the seller to have them complete the repairs before the appraiser even comes out.

2. Wait and see what repairs are going to be required and then negotiate with the seller or pay for them out of pocket. If you are going to pay for them out of pocket, protect yourself as much as possible by getting your loan CTC other than the repair requirements, etc. Talk this through with your lender to figure out the best course of action. 

3. Find another home that is in move-in ready condition

4. select another loan type that may have less stringent standards.

Another thing to note when budgeting is that you will pay the initial appraisal fee (between $300 - $500 depending on your state) and then you will have an additional reinspection fee of $100 when the appraiser goes back out to the property to inspect and confirm the repairs are complete and correct. 

Hope that helps,

Samantha 

Hi Mark,

It doesn't sound like you've used up all your entitlement. I'd suggest talking with a lender who has a lot of experience with VA loans. They can pull an updated COE and calculate your remaining entitlement and walk you through the requirements. Here's a link to a post I wrote recently on BP that explains second tier entitlement: https://www.biggerpockets.com/renewsblog/2016/01/2...

Hope that helps!

Samantha 

Yes, the VA limits who can be on the loan if you want it to be zero down. A spouse or another veteran who also intends to occupy the home can be on the loan and a down payment isn't required, but when you step outside of those scenarios, a down payment is required and that's where the 12.5% comes in. The VA will only guarantee the Veterans portion of the loan, so half of the 25% they'd typically guarantee.
Regarding occupancy, the VA requires the buyer have intent to occupy the home as their primary residence within a reasonable time after closing (typically within 60 days). If your dad isn't interested in owner occupancy, then you'll likely need to look to another loan product. 

Hi @Louis Bratton

You may want to check and see if you have any VA entitlement remaining. If you do, it may be possible to have 2 VA loans out at once. You'd obviously want to run all the other numbers to determine if the property you currently own would make a good rental, etc. But just know that you don't necessarily have to sell your home in order to use your VA loan again. Here's a BP blog post I wrote about this topic with some calculation examples: https://www.biggerpockets.com/renewsblog/2016/01/2...

Thank you for your service.

Here's a link to the Lenders Handbook @Matthew Coleman is referencing - MPRs are covered chapter 12. Just keep in mind the appraiser is to use their judgment and they are given a lot of deference to determine if the home meets the MPRs and whether repairs are required. 

http://www.benefits.va.gov/warms/pam26_7.asp

@Upen Patel I think your clarification on having multiple VA loans out at once is inaccurate. It is possible to have more than one VA loan out at once even if there isn't a PCS or other relocation. It's possible to have 2 VA loans in the same city. It's more of a prudent underwritng issue. For example, if a buyer purchases a home in X city and then 15 months later wants to purchase a second home 2 miles away also using their VA loan, whether this works or not depends on whether or not it makes sense. Why are they purchasing the second home so close to the first - is it an upgrade, a different school district, what did they realize in the past 15 months that makes this move make sense? Obviously each lender may have their own lender overlays that also come into play in this type of decision that could impact the situation, but to my knowledge there isn't a VA guideline that strictly prohibits having 2 VA loans out at once with the only exception being a relocation.

Hi Dexter,

Welcome to BP!

The VA loan limits vary by county and are updated each year. Here's a link to 2016 loan limits: http://www.fhfa.gov/DataTools/Downloads/Documents/...

The loan limit represents the amount you can purchase with zero down. It's possible to purchase above that limit using your VA loan, you'd just need to put down 25% of the difference between the purchase price and loan limit. But, like @Joe Sillaman mentioned, you still have to qualify for any loan amount based on income, DTI etc.

VA Cashout Refis are one option if you are looking to pull equity out of your current home.

Best wishes!

Hi Michael,

It's possible to purchase a short sale using your VA loan. Where you could run into issues is if the appraisal comes back with necessary repairs. In many circumstances the seller is unable or unwilling to pay for the cost of repairs. You'd then have to decide if this was a cost you were able or willing to pay for.