VA Home Loan to Conventional-Is It Too Late

[Anthony Parsons]

Hello. I have recently decided to rent my home and move due to working from home. I have a VA loan at 2.25%. Being new at this I am just realizing as I intend to purchase my long-term home in 3-4 years from now, I need to convert my VA loan to conventional so that I can free up my VA loan for the new purchase in 3-4 years from now. Or are VA loans a thing of the past in the new norm market?

With rates on the rise, should I roll the dice and rent under my VA loan and look at converting in 3-4 years when I'm ready to purchase again? I wanted to get a HELOC in the next couple of months to provide safety for my rental should there be unexpected costs. This also brings a concern because some lenders don't let your refi your main mortgage with an outstanding HELOC (any lender recommendations to avoid this?).

Or, if I've waited too long to convert, can just sell and walk away with 40-60k.  

Any advice is appreciated.  Thanks. 

[Anthony Parsons]

Quote from @Chris Webb:

Hi @Anthony Parsons, two things. One, you can use your VA loan for more than one home. I have a home in FL and one in TX with VA loans on both of them. To do this you will have to talk with a good lender who understands how this works ( i have one if you need their contact info.)

Two, if you do not intend on buying right now, I would keep the low interest rate on the rental home and refi when you plan on buying in the future. Conventional loans will have higher rates unless you buy them down. Great job asking the question and using your benefit to improve your financial security.

I am in a similar situation in that I sort of fell into investing. Now I cannot wait to buy my next home, let me know if you have any questions.

Chris 

 Thanks, Chris.  I will look into that.  I thought there was a cost cap or something like that.  My current home loan is at 330k with 100k equity (2 years old) and I will be looking to buy my second home around 5-600k.  I'll do more research!  Thank you greatly.