Question about timing w/ a VA cash out & conventional refi

[Greg R.]

Hello all,

I am currently working on a VA cash out (100%). Unfortunately, I got a really bad appraisal, probably about 15% low. I was considering going with another bank and trying my luck on another appraisal. However, I got to thinking and was wondering if I should maybe just run with the current appraisal, pull out the cash as intended, then refi into a conventional loan to free up my VA eligibility for another purchase down the road. In this scenario I'll have a lot of equity which should allow me to refinance into a conventional loan (and hopefully not need PMI).

In this scenario, how long would I have to keep the VA loan before refinancing into a conventional? I think I've heard 6 months in the past, but not sure if that's still applicable.

Any input would be helpful.

Greg