Can you use a second mortgage as a downpayment on a VA loan?
Posted by admin | Under VA Mortgage Wednesday Aug 20, 2008I am interested in buying a home in Virginia and it is more than the VA ceiling of $417,000. Can I use a second mortgage to make up the difference between the $417,000 and the sale price?
Ask a mortgage loan officer to be sure but I don't think you can. One of the documents you sign at closing states that you haven't borrowed any money for your downpayment or closing costs..
I do not believe so. When I was in Real Estate school, what I remembered about VA loans, is that in order for the VA loan to qualify, the appraisal of the home had to be under the VA ceiling. I'm not 100% sure, but I believe that the appraisal is the key.
Best to find a local Realtor that has experience in VA loans. Most will tell you they can handle any type of loan, because they want your business. You will need PROOF that the Realtor has completed more than a few VA loans, and then go with him/her.
References :
Ask a mortgage loan officer to be sure but I don't think you can. One of the documents you sign at closing states that you haven't borrowed any money for your downpayment or closing costs..
References :
12 years in real estate sales