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VA interest only renovation loan in PA?

I own a small house in MD now, five years into a VA 30/yr fixed, plus an interest only home equity line. All together I owe just less than my home's current worth. I found a foreclosed fixer-upper in PA that's a steal, but is unliveable currently. I'd like to refi my current home into an interest only loan, and buy the other house on an interest only renovation loan, renovate the place over about a year or so, move, sell the first house, and refi the new one into a fixed mortgage. My credit is pretty good, way better than it was when I bought this place, and I have a solid payment history on all my bills for several years. Is this a pipe dream, or is it really possible?



 
  • July 25 2009 - Dundalk
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Answers (1)

Sorry, but it sounds like a pipe dream.  Too many issues including:

1.  You will need to treat the refi on your current home as an investment property.  Do you have the equity?  80% of market value would be max.

2.  You will need to qualify for both mortgages regardless if you are planning on renting.

3.  There are no interest only investment loans.

  • July 25 2009
  • 1Yes

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