Is it possible

[Anonymous]

Can ANYONE tell me if it's possible to refinance a VA loan for a cashout if the home is being rented? Me and my husband own a home in SC that we rent out to military families stationed at Shaw AFB. We were wanting to do some updates to it and we were going to use the equity in the home for that purpose. We don't plan on selling the house for at least 17 years (daughter will be graduating high school then) so we wanted to refinance it since the rates are lower then they were when we bought the house. We know the equity is there so that's not the problem. We just don't know if you can refinance a VA loan and get cash out if the home is not owner occupied.

Thanks for any insight.

[tryingtogetitrightnow]

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@Anonymous wrote:
Can ANYONE tell me if it's possible to refinance a VA loan for a cashout if the home is being rented? Me and my husband own a home in SC that we rent out to military families stationed at Shaw AFB. We were wanting to do some updates to it and we were going to use the equity in the home for that purpose. We don't plan on selling the house for at least 17 years (daughter will be graduating high school then) so we wanted to refinance it since the rates are lower then they were when we bought the house. We know the equity is there so that's not the problem. We just don't know if you can refinance a VA loan and get cash out if the home is not owner occupied.

Thanks for any insight.

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I'm not expert, but from this site, it looks like as long as you previously occupied the home, you should be good:

http://www.vba.va.gov/ro/roanoke/rlc/forms/irrrl.pdf

[ShanetheMortgageMan]

For the IRRRL you do not need to currently occupy the residence, but for cash out with a new VA mortgage you must occupy the residence.

[Anonymous]

You cannot use the VA to as an investment property (renting out). If you do it, it is illegal. The loan borrower must also occupy the property.

From http://www.vamortgagecenter.com/va_loan_guidelines.html  :

The guidelines state that a VA Loan cannot be use for land loans, investment properties or non-residential items such as houseboats or RVs. VA Loans are also not allowed to be used for the purchase of multiple units in a housing complex unless the veteran will be using all units as part of his or her primary residence.

[Anonymous]

"You can do a streamline VA refinance on an investment property that you previously lived in and are now renting out as long as it still has your current VA loan on the property." (From the same site that you quoted but also from our VA loan specialists mouth as well)

We are not doing anything illegal and did our research before renting our house out. Not that I have to explain it to you but we lived in our house for 5 years before we moved and rented it out. Don't take to kindly to being called a criminal.

Thank you for the info Shane.

[ShanetheMortgageMan]

trashyart2000, that particular piece of information on that website is incorrect.

kaeina  you are welcome.