Many first time home buyers who apply to get VA loan financing will ask if they can include money for a car into their purchase loan transaction. While possible, it may not be worth the hassle.
If you own property and you have equity, you can use a Government Loan refinance to consolidate or even pay off debts. Most consumer debt such as car loans, credit cards and the like, have higher interest rates when compared to VA mortgage interest rates. This type of home loan is fairly straightforward and can close in less than a month. Among the various types of loans that fall into the Government Loan Refinance category are: VA HLC refinances including; VA Loan Refinances, FHA Loan Refinances, and USDA Loan refinances. Many borrowers will use these types of transactions to include both a car loan and a home loan.
Another option is to cash out equity and use the funds to purchase the car separately. This way the home loan will include the cost of the car. The restriction is that if you do not own property or do own property and lack equity, you may not consolidate debt (include 2 loans into one) with a refinance.
If you are buying a home, you can include the personal property (such as a car) while purchasing with a VA Loan. This can be achieved by including the personal property in the purchase agreement. This can happen even without a down payment (when using VA loans for example). If you choose to make a down payment, you can use an FHA or USDA loan to accomplish this objective.
The restrictions for VA loans are almost the same for all government home loan programs. The rule is that the loan amount cannot exceed the reasonable value of the real estate. In other words, an appraiser will be assigned by the government. That appraiser will determine a reasonable value for the home. The value given will be the maximum loan amount you can get without having to put an extra down-payment. In the event that the contract price exceeds this value, the borrower will probably have to make a down payment or fore-go the personal property (car).
The main problem with this option is that most home owners will not agree to include their car (or any other personal property) into the sale of their home. You can however, legally include the personal property (cars, tv’s, etc) in the sale. The inclusion of personal property is rather common when it comes to commercial real estate transactions as businesses will sell personal property separate from the sale of the land rights. So to answer the question “Can I get a home loan and car loan together?”, maybe. It just depends on your circumstances and loan type.
