VA IRRRL hacking question???
I'm a veteran that is currently under a VA Mortgage Loan for my primary home. Right now I'm in the process of acquiring a VA IRRRL for my current house to lower my payments. Can I utilized a VA loan to get another primary residence? Basically, I want to move into a bigger property using a VA loan again and rent my home that I currently reside in. Is there any rules against this VA mortgage/refinancing hack strategy?
Also, what's the best way to look for another lender? How eligible am I for another VA Loan to look for another property while I have this mortgage? Is it difficult to get another mortgage? Keep in mind: great credit score, good career in a state agency, but in high cost California.
Thanks All,
David
@David Moore
Below is a post I did, if you have any specific questions please send me a message. I'm not an expert but I know a little bit about the process.
Originally posted by @Clifford Paul:
@Phillp Tamez
Like @James Wise said above the VA loan is the best loan product on the market.
The second best VA loan product is the VA IRRRL loan.
The reason this loan is so good is you only have to certify you lived in the house. This means you can move out and rent house before the one year requirement of a standard VA loan.
Example I bought a house using my VA eligibility. Then I moved into the house and after 30 days refinanced with a VA IRRRL loan. Got a rate reduction from 3.75 to 3.0. I then bought another house with my remaining VA eligibility to live in and rented the first house.
When we PCS we did the same thing with my wife's VA eligibility. So with no money down we had 3 rentals and a primary house in 4 years. I believe this is most under used strategy to getting started in real estate investing.
As a side note I have done 3 VA loans and 1 VA IRRRL loan. I'm out of VA eligibility. My wife has done 1 VA loan and 1 VA IRRRL loan. She still has more eligibility which we will use when she PCS.
Also we both still have the Texas Land Board home loans. Will will be using them when she retires. TLB home loan requirement is 3 years occupancy.
@David Moore
I like what Clifford said! Where are you located in Cali? I have great Veteran Lenders in both NorCal and SoCal.
@Wyatt Degaine
Hey Wyatt,
I'm located in Yuba County, looking to move to Sacramento. The previous post answered my questions. I was looking about the extent of the limits of the VA loan and didn't realize the IRRRL counted against the "cap". Lenders with great reviews are welcome. Not only am I looking for a VA familiar lender but I'm also looking for private lenders as well since there are great deals in my area.
@Clifford Paul
Hi Clifford,
I read your response regarding VA loans - great information. I had a question regarding our scenario and wondered if you could give us any insight.
Our current home is under a 30 yr/conventional loan. We were thinking about refinancing it into a VA loan and do a cash out-Refi. What are your thoughts?
We just purchased our first rental property with a 20 percent down payment of our money. We have an itch to buy a second property and have about 60k equity in our home we are currently living in.
Thanks,
Sierra
Originally posted by @Sierra Fox:
@Clifford Paul
Hi Clifford,
I read your response regarding VA loans - great information. I had a question regarding our scenario and wondered if you could give us any insight.
Our current home is under a 30 yr/conventional loan. We were thinking about refinancing it into a VA loan and do a cash out-Refi. What are your thoughts?
We just purchased our first rental property with a 20 percent down payment of our money. We have an itch to buy a second property and have about 60k equity in our home we are currently living in.
Thanks,
Sierra
Hi Sierra
I don't know the specifics of VA cash out refinance because you can't do one in Texas. So we have never done one. I know other states allow them but I can't give any good insight on them.
I am in the process of looking into using the IRRRL. I am just wondering what kind of pitfalls there might be. It almost seems too good to be true. Any insight is appreciated! @Clifford Paul
@David Moore now that it's been several months, are you happy with the IRRRL? I finally responded to one of the many letters I received and I like the guy I'm working with but am still apprehensive.
@Trevor Soderholm IRRRL is a very simple and fast process. Lenders love this streamline refinance because it is so simple. The one thing that is kinda draw back is that an IRRRL still count as using a VA loan so in order to us it again you have to ether change to a conventional loan or do the calculations for "second entitlement".
I will be doing another IRRRL on the same property here in the next few weeks with the interest rates being how they are.
Thanks @David Moore
I am planning to use my second entitlement soon and have already looked into what it takes to do so (most of it depending on what county you buy in and at what price). But from what you are saying, it sounds like using the IRRRL won't affect my ability to make another purchase using the VA loan benefit. My loan will simply go from being VA to still being VA but with a lower interest rate (and a restart to the 30 year term). Thanks again, and good luck!
Originally posted by @Trevor Soderholm:I am in the process of looking into using the IRRRL. I am just wondering what kind of pitfalls there might be. It almost seems too good to be true. Any insight is appreciated! @Clifford Paul
@David Moore now that it's been several months, are you happy with the IRRRL? I finally responded to one of the many letters I received and I like the guy I'm working with but am still apprehensive.
Hi Trevor
I can't think of any pitfalls to using the IRRRL. It really helped us get some impossible low rates. The 2 VA loans we have left are @ 3.0% and 3.25%. In my book that's free money. Good luck on your refinance.
@Clifford Paul can you explain this in more detail? Im in the Maryland National Guard, so how could i use the VA eligibility aspect of the VA Loan, to purchase a second home? Are there distance issues since i wouldn't PCS?