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I'm currently in a VA loan,
1300/month, Owe 140k, Original Amount 240k, Current Home value 262k
No other debt.
I would like to buy a new primary residence before selling current home. Current home is in hot market at the bottom of price levels, so I'm confident I can sell quickly but in the mean time could carry the 2 mortgages. Planning to move a couple hours away but need kids to finish out school year at current school.
So I have 100k in equity to work with. But should I?
Loan is with Quicken, so I started with them.
They've suggested a refi of current loan, to 140k. This would be investment property loan to free up my VA eligibility.
Then use the VA on the new purchase.
I'm worried if anything here would be a sticking point for VA loan, could waste money on the refi and not guaranteed I'll be able to use VA.
I had originally thought to just try and get home equity line and go with a conventional loan.
Looking at home around 350k.
So down payment would be about 70k and finance around 280k
First, a Conventional Refi, if pursued might qualify as a Second home. Also, you have Secondary VA Eligibility because you did not use the entirety of the Benefit when you bought your existing home. What zip code is your existing home in, and what zip code are you buying the next place in?
Also, did you mean to say the refi would take the balance to $240k?
The plan suggested is to refi to 140k, what we owe.
But my fear is, if the VA doesn't work out. Then I don't have the money for down payment.
I suppose I could still pursue HELOC at that point but seems convoluted.
I am in 28277 and planning to move to 27516
They were also going to refi current home as investment property since we may or may not live here that long after buying our new home. But I'm thinking now, that wife and kid would probably stay in 28277 until end of school year.
VA rates are about a half of a percentage point below conventional. If you do not carry a 30%+ service-related disability, the VA Funding Fee (rolled in) would be about the same cost as the Discount points needed to buy a conventional rate down to match the VA interest rate.
At the very least, the house you are in is your primary residence, and could very easily be deemed a Second home if the family is staying until the school year is out, which is at least six months. Cashout refi on existing as Second Home, to about 75% of that value, would give you the funds for the DP on the new place, as well as a slush fund to carry the costs of both homes. Not sure if that is necessary.
I'm just a huge fan of the VA mortgage, so I lean toward that for the new place.
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