All Forum Posts by: Jesus Shuttleworth

I appreciate the thinking out loud.  That's how I visualize the moving pieces.  I think I've figured out my plan of action in these iterative steps for purchasing another single family home. 

1. I've applied for the PenFed NOO Equity LOC at Prime + 1.00% (5.50%) for hopefully ~ $70M
2. I will apply for a SDFCU OO 95% LTV HELOC at 3.99%-5.50% for hopefully ~$150M
3. I will refinance the WA property to conventional 30yr fixed at hopefully ~4.50% leaving my VA eligibility at ~$536M

I am looking for the Pros & Cons of doing it like this.

The Pros:

• Gives me access to ~$220M capital/cash
• VA eligibility goes from ~$275M available to ~$536M available

The Cons:

• I lose the 3.87% rate on the WA property.  The rate will increase ~4.75%
• The cost of refinancing and originating lines of credit, both out of pocket and financed costs

It may have been more beneficial to approach this problem by identifying the constants and the variables first.

Albert you are also correct in that PenFed limits total financed properties to 3. 
At our bank, we use the roman numeral M for thousands. MM for millions.

Bill, I just spoke with PenFed, who said they offer 2nd position variable equity lines at P+1%

Albert, both loans are 30 year fixed. I don't make big $$ which is why the 0% down is advantageous for me. My base without bonuses would support a 41% DTI payment on roughly a $500M purchase.

Essentially I would use the equity lines to reduce the amount financed on a new 30 year VA loan for the new purchase by paying down the purchase price off the top, which is why opening my VA eligibility seems so important.

Thank you for clarifying the details on a multi-family property.  I sincerely appreciate the input. 

First post. I need some help. The intent here is to purchase a new primary residence. I currently have 2 VA loans. One on a property in Colorado, another on a property in Washington.

• Colorado: 130M balance, 3.375%, LTV ~51%
• Washington: 262M balance, 3.875%, LTV ~60%

Maximum Loan Limits in Snohomish & King Counties: $667M

My idea to leverage myself into a new primary residence is in 3 parts.

1. Refinance the WA property to conventional financing to free up VA eligibility and back it up with a 95% equity line of credit from SDFCU.
2. Draw a NOO equity line on the CO property
3. Use both equity lines for a downpayment on a new primary residence financed with VA funding

• My question is, does it make sense to refinance the WA property for the benefit of VA eligibility on the new purchase? Or would it be better to maintain the current low VA rates and hope for the best on new conventional financing?
• I'm also considering looking for multi-family units. Max VA on a 4 unit property is $1.282MM and my understanding is I would only have to qualify for 1/4 of the loan amount, using the rents for the remaining 75%.