Updated over 5 years ago on . Most recent reply
Refinance to free up your VA
Currently in a house hack scenario with equity in home. Wondering is it safe to refinance current home from VA to conventional, free up VA loan, then use the VA for next home and use the equity to rehab, then repeat. What sort of red flags are here? Also the refi would increase the interest rate slightly so it could be challenging to justify why in the long run.
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Hi @Joseph Snyder , welcome to BP and thank you for your service!
If you have enough equity to refi into a conventional loan I think refinancing out of your current VA loan to free it up again is a great idea. Sure the interest rate maybe a little higher, but rates are out of this world low right now. The VA loan is an incredible product that can allow you to purchase more real estate and build your portfolio faster. As @Kevin Zolea said, don't get yourself into a bind. Make sure your numbers still work.
Another option you have would be to purchase your next property with an FHA loan. Not quite 0 percent down, but still a very good option.
Talk to a lender who knows what they're doing when it comes to VA loans, refinancing, and how to work with investors looking to do what you're looking to do. Preferably, they'd be an investor themselves, too. Lenders who ticks off all of these boxes are actually few and far between. Reach out to some here on BP or shoot me a message and I can get you in touch with one that I know who is licensed in all 50 states.