Using Your VA Loan To Refinance
If you’re a homeowner, a VA Loan could provide a way for you to lower your interest rate and monthly payment. You can also, under specific circumstances, use the VA Loan to fund necessities such as eliminating debt, completing home improvements and other large-scale projects. Right now is an opportune time for those in the service to take advantage of the great rates offered by a VA Loan to refinance their home.
There are two distinct programs that will help you use your VA Loan to refinance and get a better rate. The first option is the VA Streamline Refinance, also known as a Rate Reduction Refinance Loan (IRRRL) and the second option is the VA Cash-Out Refinance Loan. Both are great choice in helping you reach your goals.
If you choose the IRRRL loan option, you can use the money to refinance your existing VA Loan and get a lower interest rate, helping to reduce your monthly costs. These loans do not require much in the way of paperwork and very little, if any, cost out of pocket for you. If you are concerned about closing costs, you can typically add the amount into your overall loan amount and pay it off over time. It may also be possible to complete the Streamline Refinance process without an appraisal.
If you choose the Cash-Out option, you can capitalize on your home equity as cash, regardless of what kind of loan you already have on your home. This includes FHA, USDA or even traditional mortgage loans. As with any use of the VA Loan, veterans must be qualified in order to use this option.
Thanks to the current climate, right now is a good time to get the most out of a VA Loan. You’ll find that a VA Loan hosts numerous benefits and advantages when it comes to refinancing your home.
Am I Eligible For A Refinance VA Loan?
To be eligible for a VA Refinance Loan, the criteria you must meet is similar to that of the regular VA Loan. Generally, you can qualify if you meet one or more of these standards:
● Served active duty longer than 90 consecutive days during a wartime period
● Served 181 consecutive service days during peacetime
● Served in the National Guard or Reserve for a minimum of 6 years
● Hold an existing VA Loan
Spouses of veterans who died while serving or as a result of service related disability may be eligible as well. Contact a VA Loan specialist at 888-220-2921 to learn more about using a VA Loan to refinance.