VA Loan Questions - Refinance - Closing Costs
Hi,
I am a Veteran but have a conventional mortgage of $55,000 on the house financed @ 5.5% for 10 years with $550 in payments - Taxes are $1800 and are not escrowed.
House is worth between $80,000 & $120,000. $25,000 to $65,000 in equity.
I live in the house with 3 roommates that pay me a total of about $1300/month. I should be ok without the $1300 being figured into qualifying for the upper end of the $120,000 loan - (normally 30% of gross?). But would this rental income count toward the loan?
I am considering pulling out the equity to buy rental(s).
VA loans are like 4.2% with no points.
Questions:
*Struggle with just buckling down and paying off this mortgage because I would sleep easier at night.
*Make sense to get a conventional loan - thinking PMI would be too much vs. VA loan.
*Since I already have a conventional mortgage will the VA give me a mortgage and pay off the conventional of course.
*How much are closing costs on a VA loan? Any way to lessen or get around some of them? Any way to get around the 1% origination fee?
*Once I did pull out the $25,000 to $65,000 in equity would you suggest I just do 20% down? Or use the whole amount to try to buy one property for All cash?
*Any suggestions on how much money to keep in reserve if I did buy a rental?
*How long would the loan take to come through?
*Do you think it is better to buy around Holidays vs. When kids just got out of school.
Appreciate any input. - Kirk