Posted on: 27th Nov, 2012 10:04 pm
My husband bought a home 1 year ago with a VA loan. A couple of months ago he refinanced the loan and in doing so freed up his VA again. I am not on the loan. A couple of days ago we stumbled upon our dream home and made an offer (together) w/ intention of using our VA loan. We had to pre-qualify with the sellers lender and that lender rejected us b/c of the occupancy waiver that was signed during the refi stating our intention to occupy the property as our primary residence, since a VA loan is strictly for owner occupied property Is there a way around this? Our current home already has 25% equity and we could carry both mortgages w/ our income but this lender is saying it’s irrelevant.
Hi Guest,
As you have already signed the waiver at the time of refinance, it will be difficult for you to qualify for a VA loan now.
Thanks
As you have already signed the waiver at the time of refinance, it will be difficult for you to qualify for a VA loan now.
Thanks
James is correct; however you might be able to qualify for a conventional mortgage. You would need to qualify, and put at least 5% down (probably more if it is considered an investment property - which it might be deemed if it close to the primary residence, otherwise it could be a second home.) Feel free to contact me with any questions, I work for a lender.
Hi Guest,
There is a way you can do this but you may not like it. You would need to refinance your current home as an investment property which shouldn't be a problem since you have 25% equity and then get pre-approved for a VA mortgage on the new home.
The reason you're in this situation is because you pledged to occupy your current home as your primary residence for at least 1 year and now you're trying to break that promise.
Please feel free to contact me for more info or help.
There is a way you can do this but you may not like it. You would need to refinance your current home as an investment property which shouldn't be a problem since you have 25% equity and then get pre-approved for a VA mortgage on the new home.
The reason you're in this situation is because you pledged to occupy your current home as your primary residence for at least 1 year and now you're trying to break that promise.
Please feel free to contact me for more info or help.
If the new home is truly your "dream home" why not sell your current home?
You may qualify for refinancing into a conventional loan. But, here you have to make some down payment. In case of a VA loan, however, you don't have to make any down payment.
The rate on VA refinance loan will be higher than the rate on refinancing into a conventional VA loan.