Investor · Santa Ana, CA · Member since 2019 · 35 posts · 2 votes
Hi BP Forum,
I'm a novice when it comes to REI and wondering if you guys can help me with my situation. I'm looking to refinance my VA loan with a conventional loan.
Currently, my home has about 170K in equity and I want to take out my VA loan using a conventional loan. The reason is so i can have my VA loan to purchase my next property. I want to prep my self for Real Estate Investing and wondering if i should refinance for the same amount of money I owe on my property; or take out some of my equity to have on the side and use that money to invest in real estate?
Anyone out there have any input on what would be the best strategy in using my situation?
Quick recap:
First: If I refinance I would have my VA loan with a conventional loan. I'll have my VA loan available to purchase a new home with little or no money down.
Second: If I take equity money out I'll have cash available to purchase more properties.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
Smart idea to keep your VA benefit available, @christopher Aguilera. It may be worth considering a hybrid method:
Refi for your current amount (keep your payments about level)
Open a HELOC for access to the remainder of your equity. You have much lower feeds on a HELOC and don't pay any interest until you actually start using the money.
Smart idea to keep your VA benefit available, @christopher Aguilera. It may be worth considering a hybrid method:
Refi for your current amount (keep your payments about level)
Open a HELOC for access to the remainder of your equity. You have much lower feeds on a HELOC and don't pay any interest until you actually start using the money.
Thank you for your input Jaysen,
I heard of the term HELOC before, but didn't even know what it was till now. I'm definitely going to research a little more on the subject and consider doing this when refinancing.
One of the big things for me is keeping my payment relatively the same when I refinance my VA loan and have the option of using my equity if anything. I'm afraid of my mortgage payment being too much and then i cant pay it back!