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Username Post: renting out your home        (Topic#1579215)
TraciK
TraciK 
Governor
Posts: 16294
Joined: 08-30-05
TraciK
In response to Henri Jean

I have talked to to USAA about the VA loan. We will have to pay some down of whatever we go over our approved amount.

I did not know that the fee's went up each time you used it though. I need to call and check into that some more.

Thanks for your help! I love being able to come here and get advice and help!


 
Seaexplore
Governor
Posts: 20270
Joined: 06-16-05
Seaexplore
In response to TraciK

I know that on our HFA, PMI is paid until you've paid it to 80% owed OR 5 years. Minimum is 5 years even if you reach 80% before then.


 
Henri Jean
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Posts: 28773
Joined: 04-25-09
Henri Jean
In response to Seaexplore

I think the current maximum right now is $729,000 so your current home and your new one can have up to a loan total of $729,000.

That is the same limit for anyone getting a VA loan - they won't loan more than that whether it is one house or several.

I think it has to be owner occupied but if you did your current house now you can finance your new as an owner occupied when it is better.

The only issue that could raise its ugly head is that you used to have to hold a home with a VA loan and owner occupy it for a year before you could rent it but that may work with the time frame of your new house.

Or they may not have that stipulation anymore.

I'm going to research the funding fee because I'm curious to see if anything has changed and also research the owner occupany thing becuase I have a buyer who is going to buy VA in September. I need to educate myself before I can help him!


 
Henri Jean
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Posts: 28773
Joined: 04-25-09
Henri Jean
In response to Henri Jean

Just checked - from what I can tell you still have to sign a paper at closing that says you will occupy the house for a year from closing but that works if your new closing is a year out - you could get a VA on your current house.

Here is what it says on the funding fee:

The VA funding fee is required by law. The fee, currently 2.15% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers.

The funding fee for second time users who do not make a down payment is 3.3%. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.

I didn't dig deep enough to see what the satisfactory down payment is to avoid the increase to 3.3% - that is when you weigh FHA versus VA because you can get rid of the PMI.



 
TraciK
TraciK 
Governor
Posts: 16294
Joined: 08-30-05
TraciK
In response to Henri Jean

I talked to the USAA people a couple of weeks ago and they told me it was no problem with refinancing then turning around and buying another house. I even said....Are you sure? So, like we could sign to refinance today and sign to buy a house the next day? And she said yes. UGH! I guess I need to make some more phone calls. If someone would just buy this house our problems would be solved. lol


 
Henri Jean
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Posts: 28773
Joined: 04-25-09
Henri Jean
In response to TraciK

You can buy as many houses as you want as long as you don't accrue over $729,000 in what is actually mortgaged which is very generous.

I still think you might want to consider a lease purchase and put that in your marketing material. Then you get a sales contract and lease together that are dependent on each other and reference each other in stipulations.

SOme people can buy next year after taxes come back or after some occasions when money is coming in and want to rent until they can actually buy.

A lease purchase commits them to buy. I've seen them for up to 2 years to give the buyers time to save up the down payment or do whatever they need to do to actually purchase.

I'm just not clear on the occupancy thing but USAA is very reputable and they would know the current rules and laws on owner occupancy.

It used to be you could not buy rental property to rent out with a VA loan, but once you owned it and it had a VA loan you could rent it out if you lived there a year but that is always changing.

Sounds like they have done away with owner-occupancy requirements which really works in your favor! USAA would know - I've been out of real estate for nearly 4 years and I don't know the current rules.



 
TraciK
TraciK 
Governor
Posts: 16294
Joined: 08-30-05
TraciK
In response to Henri Jean

Oh, ok that makes me feel better. lol I still haven't called them. Just waiting to see if we get any calls about the house.

Our new house plans went to the printer today! So, excited about that. Hopefully we can start the build process soon.


 
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