Will my wife satisfy the VA primary residence occupancy requirement under these circumstances?

It's possible to have 2 VA loans at the same time. It's called 2nd Tier entitlement, however in order to use the rental income in your qualifying Debt to Income Ratios, you would need 2 years rental history on the property, which you don't have. If you make enough money now between you and your wife to pay both mortgage payments, then you might be able to qualify.. You can sell the home if you're not upside down, and there would be no issues at all.. But really, there's just so much info missing, it's hard to tell without looking at your complete scenario.. if you want to know for sure, you should contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Well Said William.. Your's is a complex loan that you really need to talk to a local lender about your specific situation.

With VA, you must be occupying the property as your primary residence. Since you are still living in New Mexico, it would be impossible for you to occupy the property in Arizona. You can use another mortgage program to purchase the home, subject to approval and restrictions. I am happy to explore those options with you directly! Please send me a direct message through this site to discuss options if you want to move forward. Purchases are my primary focus anywhere in the US!

Yes, It's possible to have 2 VA loans at the same time. I have done these types of VA loans as recently as October. It is called a 2nd Tier entitlement. There is a wrinkle to using the rental income in your qualifying Debt to Income Ratios which will have to be documented very correctly. Call me and we will discuss. Between you and your wife, you will need to show sufficient income to pay both mortgage payments. There are a number of items that need to be addressed and documented but YES it can be done if the numbers are correct and correctly documented. I am a Mortgage Banker here in metro Phoenix, AZ . I lend in both Arizona and California where I see numerous issues like this quite often. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman, NMLS# 218520 KLCSLoanteam.com I look forward to talking with you and helping you with your mortgage needs.

Yes you can have 2 VA loans, but the new purchase you would have to be at so VA doesnt soumd the way to go especially with the VA funding fee you will have to pay asit is a ssubsequent loan and not a streamline irrl. As for your roommate proposal unfortunately lenders do not accept room rent as they call it. I work for Arizona Bank and Trust and am an FDIC bank and can also lend our own money outside of freddie, fannie, fha and va guidelines. I would love the opportunity to speak with you and will give you honest answers and everything upfront. My name is Nicholas Quenzer NMLS 109837 Nquenzer@arizbank.com. 480.452.2001.

William gave you excellent advice and especially about using a local mortgage lender.