VA Refinance a Rental Property

Hey, active duty military and veteran families! Did you know that if you have a VA loan, you can do something very unique with those investment properties that you might be renting out?

My name is Evan Kaufman, your VA loan originator, here to help give you a good tip on how to take advantage of the VA loan again.

So, if you have a VA loan on a home that you maybe purchased years ago and are now renting out, there’s something really unique that you can do with it.

If interest rates have come down, you can do something called an Interest Rate Reduction Refinance Loan (IRRRL). These are very simple loan types, where I always like to say – Hey, four major things:

1. You can lower your monthly payment.
2. You can apply in minutes—no appraisal, no income documentation.
3. You can close them usually in 14 days, sometimes even less.
4. And lastly, you can skip a payment, sometimes even two.

But here’s the deal—they’re awesome!

We’ve got a lot of other good videos on it. It’s a great product of the VA loan.

Sometimes, people assume you can only do it if you live in the home. However, if you have a property you’re renting out with a VA loan, you can actually do that VA Streamline Refinance even on a property that you’re renting out.

And here’s the kicker—you can potentially get those primary residence rates, meaning that you can do that VA IRRRL (that’s the full name for it—Interest Rate Reduction Refinance Loan, or as we like to call it, ‘favorite Uncle IRRRL’).

You can apply that towards those investment properties. This means that if you had a conventional loan and were trying to refinance it as a rental, you might have to go with conventional investment rates, which could be significantly higher.

But with a VA loan, even if you’re renting it out since you’ve moved on—maybe you PCS’d to a new place, or had a big job change—you can still refinance it at those VA rates since it’s a VA loan.

Really incredible!

We just had this with some of our clients. We’ve been telling them about it for over a year now, like, “Hey, that’s one of the exciting things about a VA loan.”

Sure enough, now that rates have had a little pullback, we’re able to do this IRRRL for them.

They’re renting the home out because they got their orders to move, and we can do the refinance even though they’re technically not living there anymore because they had to move on—and that’s okay.

That’s one of the beauties of using a VA loan.

And I like to say that’s another hint on what you can do to optimize and utilize your VA benefits to help with your long-term vision—building wealth for the long run.

If you can refinance a home and save another two, three, four, five, or even six hundred dollars—some folks save over eight or nine hundred dollars a month—that can make a very big difference on your monthly bottom line, investing back into your future.

Ideally, with our clients’ 20-year vision, that could mean a paid-for or nearly paid-for home by retirement, or just financial security and independence as you head into retirement.

My name is Evan Kaufman again—thanks for listening to this! If you have any questions on the VA loan, I’m here to help. Take care.

See how much you could potentially save by refinancing your VA Loan!