VA Eligibility Restoration - Deed Property to Entity?
The VA guarantee has been an amazing resource to me so far, mostly due to being able to enter small multifamily deals with low and no money down. However, I'm at the point where I've exhausted my VA eligibility and I'm investigating strategies to restore it.
According to the official VA website (www.benefits.va.gov):
Veterans can have previously-used entitlement "restored" to purchase another home with a VA loan if:
1. The property purchased with the prior VA loan has been sold and the loan paid in full, or
2. A qualified Veteran-transferee (buyer) agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the Veteran seller. The entitlement may also be restored one time only if the Veteran has repaid the prior VA loan in full, but has not disposed of the property purchased with the prior VA loan.
I am considering refinancing the loan and deeding it to an LLC. If I were to do that, I assume on paper the property would be considered "sold" and the loan "paid in full" - does anyone have any experience with this? Or is there some sort of an at-arms-length requirement to the transaction that this would violate? Any military or mortgage brokers with experience restoring VA eligibility would be extremely helpful. Also willing to consider other possible strategies here.