I have never used this benefit yet. I am 20% service disabled and have looked into getting a loan before and got approved but never ran with it.
I have a not so good credit rating probably around 570+ due to some late payments and collections not much though real small amounts. I have no more than 2k in collections. So here is the deal. I have a family friend who owns a small property with “few units” small 1 Br apartment units. The property was appraised around 480k.
They only owe 200k on this property. They have told me if I want it I can have it at 200k. Could I try to get the properties for the full amount 400k and use the extra money to fix up the units? I know I can make the mortgage payments and still bank around 2k from the rent from the units.
Are there any deciding factors when receiving a VA home loan? Could I use the extra money made from the purchase to pay off my debt?
Based on what wrote. I am only assuming that the property you are wanting to buy is not going to be your primary residence. The VA loan will only work for owner occupied properties and 4 unit properties or less. If it is 4 units or less and you will be occupying the property as your home, then you have a few options that you can work with. How much did you need for repairs and what all needs to be done to the property? How much debt are you looking to pay off?
The property has 4 units and I would be occupying one of them and collecting the rent from the other 3 units which will assist me in paying for the mortgage.
As far as repairs I thought there was some work needed but the current owners have replaced all the plumbing and water heaters. So there are no repairs needed now.
As far as debt goes I have around 2k in credit cards and misc. bills out there. And a 20k student loan that I would like to have paid off as part of the deal. If I was to pay that off I would have more money in my pocket to use towards the mortgage to pay off sooner.
You have options and since the seller is a friend then it makes some more options available. Dollar for dollar, it's better to leave the student loan alone for now. Student loan rates are cheaper than mortgages and the interest is tax deductible as well. The seller can pay off your credit cards at closing as part of the deal.
hello...i want to purchase my first home with a va loan..i have my certificate...my credit is pretty good and i have been pre-approved by the bank...my question is will the va back my loan if a want to have a 2-car garage built and about 5000 bucks on top of the home loan...the house will sell for about 135k and i got pre-approved for 215k....thanks..
No. If you are trying to do something like that then you may need to look at doing a streamlined 203(k) for your purchase loan or a USDA loan if the property is in a qualifying location.
