if this is an owner occupied property and the loan was used by the owner to buy the property to live in.. then they are by federal law able to request a 3rd party mediator to meet with them and a representative from the bank and try to work out a re pay planthe issue is many in foreclosure never follow up on this and basically waive their right to this meeting. that would be step number one get into the federally mandated mediation if the owner and the property qualify.

For lending, yes, you will be limited when it comes to conventional lending, as those loan products are made for owner-occupied properties.

We do BRR to Buy and Hold no need to sale for that DSCR loan strategy,  your partner should be the bank. 

Currently, I have been using my VA loan.

My question is can we use the rental income to qualify for a loan?

My current rentals are all in my personal name with conventional loans.

My outstanding loan balance is 163K @ 3.5%I calculated that I'd clear 900/mo after expenses.I was planning to buy my new house for cash, but with the market where I'm moving/buying I'm having to go about 100K over what I was planning, so I'm taking out a 50K loan for that property.

@Sean Haran- thanks ...if you havent already done this - make sure to get fully pre approved with a lender  in order to make sure you can qualify for the loan amt you think you will need .

Is it possible to get a 30 yr fixed loan for this type?

If you had a car with a loan and sold it to someone but your name was still the one who owed the money and they are driving around in the car would you be ok with that - and oh by the way your chances of getting financing for a new one are limited..Seller financing is legal but rare.