VA IRRRL Cash Out Options?

Question

Sorry if this is in the wrong forum, but there isn't one specifically for VA Loans, but maybe it's "conventional" enough. I'm a real estate rookie and veteran with one duplex that I've rehabbed and rented out (We were BRRRing, no last R as of yet, until this past July when we moved into a SFH and began rehab on the unit we lived in). I contacted my current lender, USAA, but they're "not currently" offering IRRRLs and can't say when they'll be offering this product in the future. A couple questions:

1. Could I go to another lender who is offering the VA IRRRL and move the mortgage over to them?

2. Should I order a new appraisal, no matter what happens with lenders, so I can have the new value on hand and use it to up my insurance?

3. Things I'm missing?

Thanks!

1. Could I go to another lender who is offering the VA IRRRL and move the mortgage over to them?

2. Should I order a new appraisal, no matter what happens with lenders, so I can have the new value on hand and use it to up my insurance?

3. Things I'm missing?

Thanks!

Adrian Fajardo · Answer

@Rik Hunter First off, congratulations! That is an awesome start. I'm no expert as well but maybe I can point you in the right direction.

1. I don't see why you can't. In essence, it is a refinance. You're changing the terms of the mortgage. I recommend contacting your community banks and shop around. I would always use local banks because they are competitive with their rates. Ask to speak with their VA representative and he/she could point you in the right direction.

2. A refinance would typically require an appraisal. It would most likely be out of your pocket.

3. Most importantly, what are your goals with this property? There are fees associated with when you refinance. That said, find out how long would it take for the new terms of the mortgage to recoup the fees you paid.

I hope this helps. I wish you the best in your investing journey!

David Kelly · Answer

Right now is a fantastic time to do a VA IRRRL.  Rates have never been better for a VA and the process is very easy.  No income docs are needed, no Appraisal is needed, and a mortgage only credit pull.  The process basically involves me showing you current rates, locking in, and having you click sign most of the docs up until closing.  I am doing them now and I would be happy to help.  I just finished another one for a BP member last week.  Hope this helps!