Our neighbors house (2 doors down) was listed for sale. It is move in ready. Major mechanical items, roof, A/C, etc. all replaced in the last 3 years. Cosmetically, it does need updates. Has carpet, outdated kitchen/ bathrooms. Looking to buy for $270k.
We bought our current home in 2020 for $220k with VA Loan, 1,379sq ft. Same # of bed and bath. Did some interior updates.
Neighbors house is 1,266sq ft. We wanted to use VA loan to buy the neighbors property and rent out our current property which could easily rent for $2,200+/month. I have enough entitlement to do so.
We were told by our loan office that we would be unable to get any type of loan since there is no reason to “approve” the loan. Example, better school district, bigger home for starting a family, etc. with the home being 2 doors down and “worse off” than our current home. She doesn’t want us to be out money for appraisal/home inspection, etc. and then loan not be approved in underwriting.
Other option would be some type of investment loan which may require 15%+ down. Unsure if we want to go that route. We do have access to a HELOC and some personal savings.
I’m looking for a second opinion or other options we would have to make it happen.
Posted by Financial-Active-179
1 Comment
VA loans aren’t for investments. They’re for homes for service members/veterans to live in. Use the right type of loan for what you’re trying to do. It’s not worth playing the system.