You’ll need to sell your home and then get your entitlement restored before you can buy your new house with a VA loan. You’ll also be required to occupy the new property within 60 days of closing (up to 12 months in individual cases) which could further complicate your timeline.
Occupancy Situations As of the date of certification, the veteran must either personally live in the property as his or her home, or intend to move into the property and use it as his or her home within 60 days of the loan closing. This two-month moving window is “reasonable time,” according to the VA.
Additionally, how long should you live in a house before you sell it? The long and short of it is this: live in your home for at least two years to avoid paying capital gains tax on your home. If you want equity in your home without major updates, you‘ll probably want to live in it between five and seven years.
Similarly, you may ask, can I sell my house if I have a VA loan?
Selling a Home Purchased with a VA Loan. For an outright sale of the property, the answer is no. And there are no restrictions on who you can sell to, either. Veterans can sell to non-veterans, active duty personnel can sell the home to civilians, etc.
Can you use a VA loan for a second home?
VA loans won’t allow you to purchase this type of home with your benefits. But you can buy a second primary residence with your VA benefits, potentially with a zero down payment. You just need to have enough entitlement and income to qualify for both houses.
Can I rent my house that has a VA loan?
Renting out your home financed with a VA loan is an option. As a rule, VA loans are not used to purchase income property due to the owner-occupancy rule. But, once you’ve lived in the home, it is okay to vacate and rent out the home.
What are typical closing costs for a VA loan?
Common VA Loan Closing Costs If you’re buying a house with a VA loan, you can expect to pay various closing costs. These charges include fees for appraisals (usually between $300 and $500), title insurance (which can cost as much as $2,500) and credit reports (which may cost around $50 or $60).
Are VA Loans bad for sellers?
The short answer is “no.” It’s true VA loans were once harder to close — but that’s ancient history. Today, you’re likely to have roughly the same issues with a buyer who has this sort of mortgage as any other. And VA’s flexible guidelines may be the only reason your buyer can purchase your home.
Are VA appraisals always low?
The VA guarantees loans, so they want to make sure that the house meets their standards. Unfortunately, VA appraisals can work against the home sale. If a VA appraisal comes in low, problems can occur. For example, a home on the market for $275,000 can get a VA offer with all $275,000 financed.
Do I have to tell my mortgage company if I rent my house?
The short answer to this question is no. Failure to inform your lender should you rent out your property will infringe upon the legal conditions of the initial mortgage contract. If you do wish to let to a third party, a ‘consent for lease’ is required which can only be obtained by applying to the mortgage lender.
Can I use my VA loan to buy a house for my parents?
“My father is veteran, does his status allow me to qualify for a VA home loan?” The short answer to this question is no. VA loans are generally for only the veteran, veteran and spouse together or the surviving spouse of a veteran under certain circumstances. Some non-veterans are allowed to apply.
How many VA loans can you have in a lifetime?
Spoiler alert: Yes, you can! A lot of veterans use more than one VA loan in their lifetime, but a less common occurrence is someone using multiple VA loans at once.
Can you refinance a VA loan if it is not your primary residence?
When it comes to VA refinancing, if you get cash back on the deal or refinance from a non-VA loan to a VA mortgage, occupancy is a requirement. The one type of option that does not require occupancy, the VA Streamline Refinance loan, requires the borrower to certify the home was previously the primary residence.
Why are VA loans bad?
The VA loans typically have lower interest rates than conventional mortgages, allow for higher debt-to-income ratios and lower credit scores, and they don’t require private mortgage insurance.
How long do you have to stay in a house with a VA loan?
Are VA loan inspections strict?
While a home inspection isn’t required for VA loans, a VA appraisal is. A VA appraiser evaluates the property on behalf of the lender to make sure it meets two conditions. One, that it’s worth at least what you’re agreeing to pay for it. If a home doesn’t pass the VA appraisal, then the loan won’t go through.
How many times can a VA home loan be used?
It doesn’t happen often, but it is possible for you to have two VA loans at once. Today, a VA-eligible borrower with full entitlement has enough VA backing for a loan of $424,100 in most U.S. counties.
Can you use a VA loan to flip a house?
VA loans can’t be used to purchase an investment property. That being said, you can always purchase a home with a VA loan and pay the loan off. After that, the house is officially yours and you can do whatever you want with it – including renting it out. You also can’t flip homes with a VA loan.
What do VA loan inspectors look for?
Home inspectors are professionally trained to evaluate every last detail of a home, including structural elements, plumbing, wiring and heating/cooling systems. These experts can assess current problems and highlight potential issues that may be on their way.