Best loans for a rental property

[Aaron Nowak]

I am active duty military and purchased my house back in 2015 with the VA Loan. I recently received a new assignment so I will no longer be living in this house. I called my mortgage company to see if there were any stipulations for renting my house out while using the VA Loan. They told me I needed to switch to a conventional loan and I would need to pay to get it up to 20% equity. I currently don't have enough money to put down to get it to 20% equity. I am wondering if there is a different type of loan I can use that doesn't require having 20% equity in the house and still be able to use it as a rental? If anyone needs any further information feel free to let me know!

[Aaron Barber]

Your mortgage company is trying to rip you off... You don't need to change anything. You can keep the current loan if you want and rent it out. The VA isn't going to care or ask as long as you keep paying the bill. You have already satisfied your requirement of using it as your primary residence.

I just retired myself, bought 4 houses while active duty and I never changed loans when I got orders. Still have all of them, 3 are rentals.

But, rates are low. You could apply for an Interest Rate Reduction Refinancing Loan or IRRRL if the numbers make sense for you.