There’s nothing stopping you from reusing a home loan to buy another home, but there are some stipulations that you need to be aware of.
Did you know that if you’ve ever used an FHA loan, a VA loan, or a USDA loan to buy a home, you’re free to reuse those loans if you’re currently renting and want to become a homeowner again?
Today I’m joined by Matt Bassitt from Northwestern Home Loans to explain the stipulations of reusing home loans. According to him, this situation happens all the time.
The VA loan in particular gets misconceived most often as a one-and-done type of deal, but there is no limit to how often you can use it if you’re a veteran of the armed forces. You don’t even technically need to use one VA loan at a time, either. If you’re using a VA loan for a house you’ve turned into an investment property and you want to buy a new property, you can qualify for a new VA loan. However, because some of your eligibility is being used on that first property, you may have to put a down payment on the next one.
There’s nothing stopping you from reusing a home loan.
FHA loans are slightly different in that you can’t use more than one of them at a time. They’re designed for first-time homebuyers, but they’re not exclusive to them. With these loans, you’re allowed to use a different type of loan at the same time. For example, you can use a conventional loan to buy an investment property if you’re using the FHA loan to buy your primary residence.
USDA loans are similar to FHA loans in that you can’t use more than one of them at a time, but with these you aren’t allowed to use different types of loans at the same time. The one thing all three of these loans have in common is you must use them for a primary residence.
If you have any questions about these loans or you’re confused about whether you’d be able to qualify for one, you can reach Matt at 541-323-7000 ext. 202.
If you have any other questions, feel free to give me a call or shoot me an email. I’d love to hear from you!
