VA Loans don't Qualify for Cash-Out Refi?
First-time poster, here. My wife and I bought our first home, with a VA loan, when I received PCS orders to South Carolina in 2017. Between that time and 2020, I made the decision to separate from the military and gain some sort of normalcy to my life and made the jump into RE investing. I hired a property manager and put my home up for rent and moved home to Nashville, TN. My wife and I found a duplex in the heart of Nashville where we are currently house hacking. One side of our duplex is fairly up to date, by that I mean the kitchen has a dishwasher, microwave, and other creature comforts that modern families expect. However, with regard to our kitchen, it has a sink, a fridge, and some cabinets. Needless to say, we want to update and eventually turn this into a dual rental property.
I say all this because that home in Beaufort has been building equity for us and I'm exploring the idea of a HELOC or Cash-Out Refi. I spoke to my current lender out of SC and I was told that can't qualify for a Cash-Out Refi on a VA loan. Does this sound correct? If so, can someone explain why that is? I've never missed a payment. And my credit is pretty close to 800. Any insight would help. Thanks in advance.
I'm am shopping around with other lenders. Just seemed odd to me that a VA loan is what would disqualify me from getting equity out of my home. Especially, when I'm in great standing.