VA to Conventional

11 Replies

I currently have a VA loan on a home in Lemoore, CA. It is right next to the Lemoore Naval Air Station. So I plan on renting mostly to military personnel.

I think there is potential in converting my VA loan to a conventional loan. By doing this I could reuse my VA home loan to buy a multi family home in Ohio. This Multi family home would be more expensive than my current property, thus using the 0% down payment a VA home loan includes, would be very beneficial.

My question is, is it possible to convert a VA home loan to a conventional loan?

Also, I have about 20k invested in the stock market and would consider transferring that investment to a RE one. This is my first post, so I apologize if my formatting is different than usual. Thank you.


Talk to a local lender and I'm sure they would be happy to refinance that loan for you. Expect to be required to maintain 20-25% equity and for the rate to probably go up a little bit. This may be dependent on how long your VA loan has been in place. A lot of places require a year of seasoning as well... if the first lender doesn't answer, keep trying. @Elizabeth Colegrove may have some advice on lenders in that area that work with folks in your situation.  

Good luck! I wish I would have used my VA for a multi before I had 4 kids...


Disclaimed I am nothing more than a experienced aka jaded landlord. This is not legal advice and I have no qualifications other than experience and a big mouth ;)

Yes and no, 

Yes you can refinance it but you will have to have 20-25% in your house. You will have higher rates. When you buy a personal va loan you will have to pay a higher funding fee. 

Have you thought about FHA loans? We own 7 soon to be 8 properties, 4 soon to be 5 of them are located in the hanford/lemoore area. If we get Virginia Beach for our next duty station I plan on buying a four plex. I found that VA loan was too expensive refinance/didn't make sense for us. I also didn't want to pu t20% down for a personal property as required for a conventional. So after research a FHA loan looked like my plan.

Another food for thought. What is your price goal in Ohio. Can you just use the rest of your va loan? We have bought 2 houses with the same va loan. This was awesome and really worked out well for us. Since this was a commonly asked question I create a guide on my website where I talk about how I did this and all the rules and regulations. Let me know if I can be of any assistance.

Look forward to seeing you around.

I happen to agree with Elizabeth. 

I started with my VA loan on my first fourplex. I had planned on refinancing it after a year and using it again but it ended up being better just to use an FHA loan for the next fourplex.

The only issue with this buy and move in model is that the underwriters are strict. You need to live there for a year. Your next place, if using another FHA loan, needs to be bigger in square footage than your current place and if you put a down payment less than 10% you'll be subject to PMI for the life of the loan.

I'm in Ohio and the real estate water is fine. Jump on in!

@Austin Steed I agree with @Elizabeth Colegrove. Depending on how much VA benefit yo have used up, you could potentially use the left over benefit for the purchase in Ohio.

If you go the FHA route, then I recommend doing 10% down. That way the PMI drops off in 11 years.

It sounds like we are in a similar circumstance. 

Yes, I would want to avoid paying a PMI. I know that would kill cash flow.

I'll have to look into these FHA loans. Thanks a lot!

Elizabeth, I thought that you can only use a VA loan once? The only time you can reuse it if it is no longer outstanding?

Nonetheless, I will have to look into a FHA loan, I might just have to keep my current VA loan until I sell my property in Lemoore. I am hoping since the F-35's are coming out that, that will drive the market up and I can just hold and sell in just a couple years to make a profit.

@Austin Steed You only get one VA "entitlement". That equates to a certain pot of money, the size of which is dependent on your geographic area. If your purchase in Lemoore didn't use up that pot of money, you can use whatever is left to purchase more properties. Check out the below link from the VA for more info.

That being said, you won't be able to use the VA for your Ohio multi-family purchase unless you intend to live there.

It wouldn't surprise me if it applies to VA also. They want to prevent people from abusing these loans. You need to show that the place you're moving to improves your quality of life. Usually that means bigger. I had to write a letter to the underwriter explaining why I was moving.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here