Refinance from Non-VA Mortgage to VA?

5 Replies

Have you refinanced from a non-VA mortgage into a VA mortgage?

I know you can go from a VA mortgage to a non-VA, or VA cash out, or VA IRRRL but I have not seen much firsthand accounts about going from a non-VA to a VA. Anyone with experience doing so, please reply!

Good question thanks for your answer. My question is I currently have a VA on my primary residence and I wanted to get a conventional loan and use my VA to purchase my third property with no money down (primary residence) and make my current property rental #2.

Is this the best way to buy with no money down? 

Terry, that is a great way to do it. But it may not be necessary if you have enough entitlement still left (also referred to as bonus entitlement). What most people don't realize is you can have multiple VA mortgages as long as the total amount doesn't exceeded VA entitlement cap. It is currently over $450,000 though I don't want to give hard numbers because VA has exceptions and different entitlements for special cases depending on the area. But using 450,000 as an example if you currently live in a house that you purchased for 200,000 with VA and then get PCS orders you can then still purchase another house utilizing your remaining entitlement of 250,000. This is factoring no selling of properties or refinancing.

@Shaun Futch

You are correct in that you may have more than one VA loan at a time, but you are incorrect in your interpretation of how the entitlement works. I've purchased two homes with VA and done VA IRRLs over last 9 years and I've always thought entitlement worked as you do, but I finally learned the true nature just 2 weeks ago.

In essence, there are two tiers of an entitlement and that entitlement is merely an insurance from the VA to any lender that they are guaranteed against 25% of the loan value. See link below for a more in depth explanation. Prost.

https://www.military.com/money/va-loans/understanding-entitlement.html

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you