Refinancing out of VA to reuse benefit

[Corey Collins]

Hi all,

Thanks for taking a minute to read my post. I'm trying to figure out the best way of how I can use my VA loan to purchase my next property. Here is my current situation:

I own and live in a SFH purchased with VA loan 3 years ago. The loan is a 30 year fixed at 3.25 %. I could reuse the VA loan for a second mortgage but the details are a bit murky from what I understand. Also, the loan guarantee amount would be significantly lower since I still have my 1st VA loan. My goal would be to purchase another small multifamily (2-4 unit) and house hack for another year (just got done doing this with our duplex purchased a year ago).

The way I see it, I have two options. One, sell our current home, free up the VA loan, purchase a new property, fill a kiddie pool of cash from sale proceeds and enjoy. Two, refinance home into a conventional loan, use VA loan to purchase a new property, rent the previous home, forgo the kiddie pool but enjoy the increased cash flow.

All that being said, am I even able to refinance since it would likely be into a higher interest rate? If so, is it even worth it? Is there another option that I'm not considering?

Thanks in advance!