If you don't sell the 1st lien off, its a lot easier for the borrower to get refinanced out into a conventional loan in 24 months at only a 80% or less LTV (depending on appreciation and market values).I think we can agree on one thing though....no matter which route you go, you have to treat it like a business.  

I'm considering refinancing my current VA loan, which has a 5.6% interest rate and a monthly payment of $3,200, into a conventional loan.

The buyer was seeking a conventional loan. 

Conventional, UWM Rate: 8.00%Lender Credit: $62030 Years Fixed You have to consider that a conventional loan does not have a Prepayment Penalty.

conventional How did you add value to the deal?

Conventional financing with bank How did you add value to the deal?

We financed this deal using a conventional loan, and taking portions of my 401K out to make the down payment and stage the house for STR and MTR.

Regular Conventional? 

Conventional mortgages have no opportunity. 

From the tenant's pov, I don't see why a conventional lender would have issues with a tenant buying the property as a primary that they've been living in.Cheers!