Veteran's Assistance (VA) loans are intended for home buyers who are interested in purchasing a primary residence. However, whether you're retired from the military or not, the VA does know that sometimes families need to move. If you currently have a VA loan out and have to switch properties, you have a few options.
You Can Get Another VA Loan
It's possible for you to sell your current house and purchase another house in something that's called a "like kind" exchange. A like kind exchange means that you're selling a property and exchanging it for the same type of property, such as selling a primary residence and buying a primary residence. This is commonly done by people who are downsizing or moving into a larger property.
A VA loan will still be an option. In fact, you may still have a stipend available for your down payment on your next home, if you didn't use it all up on your first property.
You Can Rent Out Your House
VA loans aren't intended for rental properties. However, if you purchase a home and later need to move for a good reason, the VA isn't going to stop you from renting out your property. You will need to show that you had a reason for moving, though. The VA loan requirements are that you intended to use the property as a primary residence when you purchased it.
You can also refinance a VA loan into a different type of loan to rent it out without any difficulties. Refinancing a loan may also give you the opportunity to get a lower interest rate, provided that your credit score is still the same or better.
You Can Sell the House
There aren't any restrictions on selling a home even if you received it through the VA program. You can sell your home at any time and for any amount, provided (of course) there's a buyer willing to pay it. Sometimes this is the best solution, though you usually want to own a home for at least 3 to 5 years before selling to make a profit.
VA loans are very flexible and, for the most part, they are based on individual circumstances. If you've encountered questions regarding your VA loan, the best thing you can do is contact the VA and ask them your questions. They'll be able to tell you the proper way to make any changes.
To learn more, you can also reach out to a company like Rankin Mortgages.Share