VA streamline and using 2nd tier entitlement, im thinking of doing a va streamline refi on my duplex, then purchase a 4 plex, is there a length of time i have to wait to make these 2 transaction. or should i do one before the other?
@Elizabeth Colegrove what do you think of this
Hi @Tereal Wilsonn . By VA streamline, do you mean a VA IRRL (interest-rate reduction loan)? I think VA streamline is the verbiage used by the people that send you all the offers in the mail, but the VA actually calls them IRRLs. If that's the case, you shouldn't have to wait any length of time to do the IRRL. There is no occupancy requirement for the IRRL, other than you occupied the property at some point in the past. You won't be able to take any cash out, but you can add in up to $6,000 of energy efficiency improvements. I just read a horrible experience someone had when they actually did make an appointment with one of these mail offers. In my own experience, you really can't get any of the terms of the loan from them by phone. I suggest going back to your original lender and check their terms against terms by other reputable local lenders.
You could also check with that lender about the possibility of using your second-tier entitlement. There are a few stipulations that go with it and it's better to know these before you pick that perfect property. Additionally, the lender may give you better terms on both loans, hoping you'll soon be a repeat customer.
You can find more information on IRRL's in Chapter 6 of the VA Lenders Handbook. Hope this helps!
What a great thing to know: there is no occupancy requirement for the IRRL. Thanks @Shawn Devoid ~
Greetings @Shawn Devoid , im going inquire with my bank about this, i want to do a IRRL and do a second tier fairly close to each other within weeks, i appreciate the info
Hey @Tereal Wilsonn how did this all work out for you? I am in the process of doing the exact same thing through Veterans United. Got any words of wisdom?
@Shannon Bernard hey , I never did go thru with the streamline, however I just saved and purchased a 4 unit with the second tier loan , right I’m considering refining my duplex into an llc using RCN
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