VA Loan - Personal Residence to Investment Property

2 Replies

Hey, BP Community,

I purchased a townhome in Jan '14 with my VA loan. My girlfriend and I decided to move in together a few months ago (into her place) and I made the decision to keep my townhome as an investment property. I signed a 2-year lease yesterday :)

Question: Am I obligated to do anything with my loan, like a refi? I don't think that I am because it was my primary residence when I purchased it, and I used it as such for a year. Secondly, if I am not obligated to do something with the loan, should I? The current loan is a 5/1 ARM. I only plan on holding the property for another 3-4 years before pursuing a sale, however, I think I'll be pursuing another primary residence in that timeframe and would like to use my VA benefits. I know I can have 2 VA loans open, as long as I don't exceed my total benefits, but I'm wondering if I should just refi out of my current loan so that I have max benefits/leverage when I purchase my next house.

I know there is a million variables, but wanted to hear some feedback from others who may have used a VA loan to purchase a primary residence, then ended up using it as a loan on an investment property.

Thanks!

Josh

@Joshua Iachini

My wife and I have done the same thing; lived in a house we bought with a VA loan, then moved and now use it as a rental.

If you're certain you will sell in 3-5 years, let it stay as an ARM, as I'm sure it's a lower interest rate. And no, you aren't obligated to refi at all.

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