Easiest Way to Refinance OUT OF a VA loan

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Easiest Way to Refinance OUT OF a VA loan

Joe Crupi
Rental Property Investor · Member since 2019 · 103 posts · 17 votes

Facts:

- former primary residence in TX now being used as rental while working overseas

- ARV @ $250k

- VA mortgage - @$63k

- self employed

I want to get back my full VA eligibility back. Unfortunately paying off the mortgage doesn't do that, hence looking to do something else.

Banks wont seem to do a ELOC in TX

Refinance quote with Navy Federal ended me up with over $2k in various fees. This seems like too much to pay for the purpose of what Im trying to do.

Id also be willing to do cash-out refi at max ltv, but not sure many will do that either on investment property in TX and me being self employed.

Any ideas on how to get this thing refinanced in any way so that I can get full VA eligibility back?

Thanks!

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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y
    Originally posted by @Joe Crupi:

    I want to get back my full VA eligibility back. Unfortunately paying off the mortgage doesn't do that, hence looking to do something else.

     I think whoever told you that might have been trying to drum up a refinance.

    Don't take my word for it, check this out, from benefits.va.gov directly. 

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  • Joe Crupi
    OP
    Rental Property Investor · Member since 2019 · 103 posts · 17 votes
    7y

    @Chris Mason

    Hi Chris. Thanks for responding.

    I did notice they do allow a restoration of this benefit, however you can only do this once! This means that only one time can you have a full va benefit being used and get another one. Being that I dont have multiple properties on the hook right now, Id like to refinance out and get my basic VA benefit back and save the ‘one time restore' for when I REALLY need it.

    Hope that made sense.

    J

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  • Kenny C.
    New to Real Estate · Puyallup WA · Member since 2009 · 85 posts · 39 votes
    7y

    make sure I'm reading it right. Would you be financing 63k at a cost of 2k-ish and the be able to get full VA back and keep the current property?

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  • Joe Crupi
    OP
    Rental Property Investor · Member since 2019 · 103 posts · 17 votes
    7y

    yea, Kenny, basically. Just was hoping to find something cheaper or another way....was trying not to have to pay much in fees just to refinance, especially since I don't need to for any other reason but to get VA coe back......now, if someone would give me a large LTV on an investment property, i wouldnt have problem with the fee

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  • Angel V.
    Rental Property Investor · Oklahoma City, OK · Member since 2018 · 21 posts · 14 votes
    7y

    @Joe Crupi. Did you look into penfed? I just got a HELOC on an investment property through them and paid off my primary mortgage with it. Very painless and with leftover cash for my next buy (very low fees and 80% LTV).

    Not sure if they do Texas but worth a try if you are good with the interest rate.

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  • Joe Crupi
    OP
    Rental Property Investor · Member since 2019 · 103 posts · 17 votes
    7y

    @Angel Vazquez. I did check out the site. 80% is pretty legit for an investment property. My guess is a rate in the 6’s? What were your closing costs?

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  • Ray Johnson
    Irvine, CA · Member since 2016 · 545 posts · 614 votes
    7y

    @Joe Crupi You have $187,000 in equity, I think your ROI may be ok absorbing the $2,000 in fees on a refi cash-out, the question I have is are you pulling the entire $187k out of the property to reinvest or are you just refinancing the $63k? If you're just refinancing the $63k then you should be able to get less than 3% in loan cost that they offered.

    Often if a loan isn't going to make any money on the interest side (a $63k loan doesn't make any money for the bank), the lender will look to make money of the fees, it seems like that's what they are trying to do. 

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  • Angel V.
    Rental Property Investor · Oklahoma City, OK · Member since 2018 · 21 posts · 14 votes
    7y

    @Joe Crupi yeah the 6 is nothing to brag about but I only paid for the appraisal ($500) they covered the rest.

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  • Jim Cummings
    Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    7y

    @Joe Crupi, @Angel V.. Can't do HELOC on Investment Property in Texas.

    Concerning the $2K in fees: Just roll them in the loan, and take the slightly larger monthly payment. 

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  • Joe Crupi
    OP
    Rental Property Investor · Member since 2019 · 103 posts · 17 votes
    7y

    @Ray Johnson @Jim Cummings @Angel Vazquez

    Yea, as Jim mentioned HELOC in tx is a no-go on investment properties :/

    Ray, the quote was for pretty much just the $63k, or $63 plus all the closing costs and escrow. They werent willing to do a larger cash-out.

    @jim, i could roll them in or just oay them. I giess it was the principal of paying that much in fees...was trying to be less than that.

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  • Jim Cummings
    Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    7y

    @Joe Crupi. Understand - something things just don't set real well about paying a lot of fees! 

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