u/GingerStu

Hello all, I'm looking for some advice on mortgage options for a potential home purchase this fall/next spring.

Current situation:

• Current home value estimate: $315,000
• Current mortgage: 3.26% transferable VA loan - $190,000 balance
• New house price range: $600,000 - $750,000
• Cash available: $110,000
• Credit rating: Both 800+

We are unlikely to have the 20% down payment necessary to avoid needing PMI and the new house will likely need at least some renovations.

Would it make sense to refinance the current VA loan into a conventional loan to allow us to use a VA loan for new home purchase, allowing a lower down payment without PMI so we can use the cash on hand for renovations?

We will pull around $125,000 out of our current house when we sell, but in the current market conditions (DC area) it may take a while to sell and I have no interest in renting it out.