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Hyattstown : Real Estate Advice

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Activity 2
Mon Jul 26, 2010
answered:
Madpoetx,

There's no way the VA will allow you to close with the properties in the condition they are. The appraisers act almost like home inspectors when they appraise the house, checking off a list of items they are looking to be in need of work before closing.

However, the guidelines to REFINANCE to a VA loan is much easier than it used to be. Prior to October 2008, refinancing to a VA loan was limited to 90% of the home value and $144k (whichever was less). You can now refinance to 100% of the home value on a VA coming from a non-VA loan.

If I were you, I would first find a VA lender who would do this refinance for you, since not all lenders will do a 100% refinance from a non-VA loan. Next, I would find another lender who specializes in FHA 203k loans. These are rehabilitation loans designed to finance the rehab work in the loan. You'll need to come up with some money down but it's fairly low. Then buy the homes using the rehab loan and when the work is completed, refinance to your VA loan. Paying mortgage insurance for just a couple of months isn't bad. The upfront MI on FHA is high at 2.25% but if the house is that good of a deal, it'll be worth it.

Here's some more info on VA loans and the changes to allow 100% financing coming from a non-VA loan:
http://www.keaneloans.com/2009/08/18/va-loan-benefits-the-best-home-loan-everybody-forgot-about/
... more
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Sun Jul 25, 2010
Maya Thomas LLC answered:
This is not a good option for a VA loan. Have your buyer's agent keep an eye out for another fantastic opportunity that works for a VA loan.
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