I am looking at buying a new home next Januarary and then renting out my current home. My current home has about 40k in equity and is financed at 6% using my VA loan. My main question is should I do a VA streamline refinance on my current home or convert it to a FHA loan and then use my VA loan on the new house? Is there a benifit either way? I would like to get the current loan down to a lower APR to help cushion our income (money from the rental will go into a savings account to only be used on the rental property for repairs or service until we sell it at some future date). I will have up to 5% to put down on the new house plus reserves.
The only other pertinet info is that we filed CH7 BK 9/10 (reaffirmed the house) so I know I have to wait until 9/12 before I can do anything.
Thanks for the help!
