Rental Property Investor · Colorado Springs, CO · Member since 2018 · 46 posts · 16 votes
I currently own two homes, my primary residence in Texas and a rental property in Colorado which holds roughly 70k in equity. Both are financed with VA Loans. I purchased the Colorado home back in 2014, which was used as my primary residence until the beginning of 2017. After being transferred to Texas we rented out the Colorado house and I used my VA Loan Second-Tier entitlement to purchase my new home in Texas, maxing out my VA Loan entitlements.
My first question, would I be able to do a cash-out refinance on my Colorado rental, to use as a down payment for another investment property, if I have maxed out my VA Loan entitlements?
Also, if I transfer my Colorado rental's VA loan to, for instance, a non-VA 7/1 ARM, would that open my entitlements back up and give me the ability to use my VA Loan in the future?
First off...Thank You for your service. Myself I am prior Navy, served with Special Boat Units....now referred to as SWCC.
I'd be curious to know what the answers are to your questions as well. I used my VA Loan in 2016 to buy a duplex.....and now I'm looking to refi out of it.....so I can use it again and buy another duplex.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
8y
Hello and welcome. Once you refinance the house or otherwise pay off the mortgage, you must apply fore restoration of your benefits. The first four mortgages are the "easy" ones, however the interest rate on a non-owner occupied mortgage will be higher than on an owner occupied residence, just so you know. Over 4 mortgages, the lender will require six months of "reserves," the principal, interest, taxes and insurance, plus HOA fees for each house.
Rental Property Investor · Colorado Springs, CO · Member since 2018 · 46 posts · 16 votes
8y
Is a cash-out refinance even an option with my VA-Loan considering I have max out my entitlement?
Or if it is possible would it be more beneficial, assuming the numbers work, to refi into a conventional loan? Considering I could use the restored benefits to purchase another primary residence after I am transferred to my next duty station.