Advice for an upside down mortgage
Looking for some advice on my current property that I am residing in. I purchased my townhouse in 2007 for approximately $296,000.00 @ 6% (40 YR Loan, interest only). Come to find out that the loan is one of the worst ones out there. I have paid off the first ten years which was the interest only and never put any money towards the principle, mainly because I lacked financial literacy. In 2008 the crash hit and the property is currently worth between 250k-260k. I currently owe 281k and would like to refinance but the loan to value is approximately 30k difference. My hopes is this property will be my first rental and I will use an VA Loan to purchase my primary residence in the future. The rent for my current property goes for1800$ a month but if I decide to leave I would have a negative cash flow. The difference between my mortgage payment ($2050.00) and the rent would roughly $200-300 coming out of my pocket. Although it is a small negative cash flow, I would have to maintain that for a minimum of five years before I could refinance the property. At this moment I looking for some options or advice from others on how they would pursue this situation. I have spoken to many loan officers and no one will help out to take on the loan. If there are any programs that anyone knows of for upside down mortgages due to the 2008 crash by all means please let me know.
V/R