Can a conventional loan be refinanaced into a VA loan?

Can a conventional loan be refinanaced into a VA loan?

2 Answers

Yes, but may not be advisable to do so. VA loans have guarantee fees that conventional loans do not. Would be curious as to your motivation to go to a VA loan!

refinancing any loan OTHER than VA into a VA loan is considered "cash out", the maximum LTV would be 90% of the current VA appraisal. (VA circular out a few years ago allows up to 100% LTV on no cash out deals where switching from conv to VA, depends on your correspondent overlays)You may charge ONE POINT origination and that is it. No underwriting, no processing, no title company closing fee, no termite inspection fee. There will be no monthly MI, there may be a funding fee 2.15% OR a subsequent use funding fee of just over 3% if Veteran has used his benefit previously and paid off VA loan. VA will allow lower credit scores as well as a slightly better rate than most high LTV conventional loans and may just be the ticket for your Veteran as long as your lender can structure the loan to absorb the unallowable fees.