Prices are down on houses pretty much in every state and every city in the U.S. So this makes it an excellent time to be a buyer and take advantage of the low home prices to move up to a better house in a better location. One issue that holds many back is that they own their current home that they live in and could not qualify for a new mortgage loan with having to count both housing payments to qualify. And FHA and conventional loans require you to have 25% equity in your current house to count as income to qualify the projected rent you will get from the house you are moving out of. The good news for VA eligible borrowers is that VA homeloans allow you to count the projected rent you will get on your house you are moving out of as income to qualify for a VA loan on a new primary residence. Very few VA lenders will allow this, but we will.
Generally to count the rent of the house you are moving out of as income to qualify VA loan, you will just have to supply a signed lease that will take effect when you move into the new house that you purchase.
Because many homeowners in California are upside down or have little equity in their houses, they are NOT able to take advantage of the incredible home prices and interest rates right now because FHA and conventional financing requires them to have 25% or more equity in their current house to be able to use the projected rent it will get to qualify for a mortgage loan on a new primary residence. This is preventing thousands and thousands of potential home buyers from moving up to a nicer house in a better neighborhood. However if you are eligible for a VA mortgage, you may be able to take advantage of the low prices and move up to a better house because we allow you to count the projected rental income on the house you are moving out of.
So if you have any questions regarding this guideline or any other question about VA, FHA or conventional home loans feel free to give me an email at homeloan8@gmail.com or a call at 858-922-7899.
And some other general current and up-to-date advantages of VA lending:
- VA loan credit scores do not have to be perfect, a 620 score can get you a top VA loan interest rate
- VA loan limits in California go up above $900,000 for 100% financing in certain counties. And many cities and counties such as Los Angeles, Orange County, San Diego, San Jose and San Francisco have very high VA loan limits
- VA homeloans have NO monthly mortgage insurance, a big advantage over FHA and conventional loans
- VA lending requires NO down payment, the loans are 100% financing
- Interest rates VA loan are still at close to 50 yea historical lows
- VA loan streamline refinance allows you to drop into a low interest rate easily if you already have a VA loan
- You can get a second VA loan if you have paid off your first VA loan, even a 3rd, 4th etc… But you can only have one VA loan at a time
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA, FHA or conventional loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
Rent Out Current House And Get a VA Loan To Buy A New House In California is a post from: VA Home Loans 858-922-7899
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