The short answer is yes providing you qualify for both mortgages. You cannot use future rental income on the property you are vacating unless you have more than 30% equity and a rental contract in place and proff of rent income which is unlikly since you are still living in the home. That said you will need to qualify on both payments. Wish ou the best, Gordon
I agree you need to give a bit more info. I'll go with you having an FHA and wish to move while renting. And then use your VA benefits to purchase a new home. If that's right and you have your VA eligibilty than yes you may do that. As others said you'll have to qualify for both homes more than likely with no rent being used to help out. Depends how much equity you have in the home now. VA is easier to qualify then ant other loan so that will be helpful. Let us know if you have any other questions. I specialize in VA loans if you need my help.
Only if you are truly going to move to the new house, do not even think about misleading a lender and use the VA loan to purchase a rental property calling it owner occupied. That is a serious criminal offence. Good luck,
I assume you have a FHA loan on a property that you wish to turn into a rental and buy a new home with a VA loan. You will be required to show enough income, excluding rental income, to support both loans. As time goes on and you have a proven income stream from the rental you can hypothecate 60-80% of that income for credit purposes. Further, it may be possible in special circumstances to hypothecate a portion of the rental income at the outset based on the terms of the lease, the credit of the tenant and the amount of rental security. You need to work with a LO who knows the rules. i can make suggestions as I just went through a similar scenario with my son.
Hi Dar, I believe that would depend on your financial situation and circumstances. Do you have a loan officer you could speak with about this? If not, please let me know, I know a few lenders who handle both VA and FHA.
Thank you & good luck!
Keller Williams Excellence Realty