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My primary question is about loan type

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Regular Contributor

My primary question is about loan type

1. Mortgage Credit Scores: EQ: 768 TU: 777 EX: 795

2. Credit Negatives: None

3. Gross Income: $64,029.48 Per my LES. My tax returns will show much less due to BAH/BAS not being taxable.

4. Source of income: Military

5. Monthly debt payments: $924 (two regular CCs and rent)

6. Employment: Military (9 years)

7. Assets/Reserves: $70,000

8. Location: Carlisle, PA. Possibly neighboring towns.

9. Property Description: Single-family home.

10. Property Value: Up to $80,000.

11. Occupancy: See below.

12. Transaction Type: Purchase

I'm looking to buy in early summer (mid-June). My circumstance is odd in that I'm currently stationed in GA, but I intend to buy this house for my mother to rent. Since it will still be my home of record for the purposes of taxes/voting, could it be considered a primary residence, or investment-only?

I have no intention of paying PMI or rolling any closing costs into the loan, so I'll be putting up to $16,000 down and am putting money away for closing.

Also, since I'm nearly a full day of driving away, I'd like to limit my individual trips. What steps would require my signature, if I do not do power of attorney? (I will likely allow limited exceptions.)

I think that's all I have for now... thank you in advance for your help.

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Community Leader
Super Contributor

Re: My primary question is about loan type

If you are or your spouse (VA guideline) won't occupy the home within 60 days or a resaonable time, then it won't be considered a primary residence (even if you change your HOR or SLR).  There is an exception if you will be retiring within 12 months and want to purchase a home in the retirement location, but you'll need to provide an application for retirement and a commitment from an employer in the area you are retiring to.  If that does not descrie you, then you'd need to purchase the home as an investment property (minimum 15% down, but 25% down gets the best rates for investment properties). 

 

When it comes to signing docs, they can be sent to you in GA to sign in front of a notary, then you'd just overnight the docs back to the title company in PA for the closing.  The rental income from the investment property can be used to help qualify (doesn't matter if you have a rental agreement or not) and your housing expense (assuming you have one) in GA will be factored into your debt-to-income ratio as well.  6 months PITI in reserves will be required, it appears you'd have enough to cover that (Thrift Savings Plans are acceptable to use as reserves).

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