Hello, My husband and I currently have a home we bought about two years ago with a VA loan and are interested in buying another single family home to be our first rental property. The issue is coming up with the down payment in Cali. So we might hold off and just wait till we get our next orders in about a year and a half:(. Which most likely will be cross country. Of course we are going to keep our home here in Oxnard, CA as a rental if possible and buy another primary house in the next location. The questions is:
To anyone who knows VA loans really well. Is it best to try and refi out of our current VA loan to a conventional? Our current rate is %3.75? This way when we buy or next house we can use the VA loan once more? Or is it best to keep our current home a VA loan due the purchase price here in California being a lot higher then where we would be going next? We could also possibly do the VA IRRRL refinance if the rates get a little lower with our current home.
Thanks SO much for any advice!!
Depending on which part of the country you'll be PCS next, you may be able to still do 100% VA financing. My opinion do nothing at this time.
My opinion will be vastly different from the other poster. See if you can refi out of the VA Loan into a conventional loan, now while the rates are low. Do NOT go back to the same people that you git the VA loan with to do this because they will (understandably) give you the run around. Go to about 5 or 6 open houses this coming weekend.....while you are there let it be known to the agents that you are currently in a VA Loan and you are looking for a lender that can convert it to a conventional loan and you want to use the VA loan again to buy a property sooner rather than later.
I guarantee you that at least half of them will put you in touch with a lender by Monday (most likely the same day if you are at an open house on Saturday or Sunday) and then you can see who you feel most comfortable working with.
The reason I say go to open houses is because it seems like if you "show up" you are taken more seriously. earlier this year i called and emailed some lenders and told them what i wanted to do, and I got push back from them............but when I "showed up" at open houses, I was taken MUCH more seriously. You will too.
We plan on staying in Oxnard, but because we foresee a market correction coming soon, we went ahead and refinanced our current residence out of a VA into a conventional. Because we were under 75% loan to value we don't have any PMI. We plan on staying in this one for at least a year (the lender requires it) then when the market resets we will buy another house here and move out of this one. Then we plan on renting the house we are currently in. All that to say, I think it depends on what your loan to value is and if you can keep your payments the same.
Also, I have a great loan agent in this area. Let me know if you’re interested.
Thank you for your response! I think you are right on with it might only be a good idea if the loan to value ratio was higher for us. Due to use purchasing this home only two years ago it is definitely not their yet. I will message you for the loan officers contact info. Thanks!!
Hello Paul thank you for your response! I looked into it and I believe you are referring to a Second Tiered VA Entitlement. I have to do some more research due to our high purchase price here in California. Thanks!