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Hello, I am 23 years old and my husband and I bought our first home in Colorado Springs with a FHA l

Hello, I am 23 years old and my husband and I bought our first home in Colorado Springs with a FHA loan 9 months ago. It was a foreclosure so we got a great price and we did all the renovations ourselves, putting about 12K into it. We owe about 150K on the home but it is worth about 210-220K. We are now considering renting it out and taking advantage of the VA loan to buy another home, in Denver. We feel we will have no problem renting out this home since Colorado Springs is a military own. Is this a good idea to buy a 2nd home? Would we even be approved, one year after buying our first home? Also, he is 'unemployed', attending school on the GI Bill so I am the one who is working, and possibly changing jobs soon. How important is job history?
  • September 04 2013 - Powers
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Answers (8)

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That's good to know.  (until it changes)  thank you!
  • September 04 2013
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Yes John, and this guideline is specific to VA loans.
  • September 04 2013
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Usually an FHA loan requires you to live in your house for about a year so you would have to spend 3 more months in that house. When it comes to buying a second home, lenders will be more picky. They will want a higher down payment and have a higher rate to balance out the risk of the second home. Since a second home is riskier in the eyes of a lender, they may want to see more out of you and your husband's employment. The best way to solve your problem is to talk to a lender. There are lenders like myself who are more than willing to hear your situation and give you the information that you need.

Well I hope this helps! If you have any further question or if you would like a loan, feel free to contact me. Also, if you found this comment helpful, please leave me a review!

Good Luck!

  • September 04 2013
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John. To answer your question--VA allows a veteran to offset the current mortgage with projected rental on the home they currently occupy. VA clearly states that this rental amount is not included as income but can only be used to offset the current payment. 
 Most lenders will require a signed lease and possibly a copy of the security deposit check to allow the offset--but VA will allow it.
  • September 04 2013
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Nic,

That works with no prior property management experience or record of having managed the income as a business?
  • September 04 2013
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For example let's say your mortgage payment on your home in the Springs is $1000 a month and you potentially rent it for $1200. With using a VA loan for the house in Denver you would be able to use a portion of that rental income to offset that liability going forward allowing you to possibly qualify with only your income stream.



  • September 04 2013
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Nic, I appreciate your reply. I would be living in our home in the Springs for at least 3 more months, so that wouldn't be an issue with the FHA.

With the VA loan, when you say that you can "count a portion of the potential rental income to offset the mortgage payment", what does this mean exactly?
  • September 04 2013
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It may be possible, one of the first things to consider is that with an FHA loan you signed a document at closing stating you would live in the property for at least 12 months.  Occasionally you can contact the mortgage company to inquire if they will allow you to move out of the home before this timeline without consequence.

With looking into a new VA loan to buy in Denver you would be able to count a portion of the potential rental income to offset the mortgage payment on the house you would potentially be vacating in CO Springs. Let me know if you'd like further information.


  • September 04 2013
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