VA Veterans Refinancing Options
VA veterans in the United States already benefit from mortgages which don’t require mandatory mortgage insurance and in most cases, a VA lender won’t even require a down payment on a new VA home loan.
However, while VA veterans are already eligible for a variety of enviable home financing options, it is important for veterans to remember that they might stand to benefit even further by switching to a new VA lender further down the line.
Interest Rate Reduction Refinance Loans for Veterans
By far the easiest way to refinance an existing VA home loan involves applying for an Interest Rate Reduction Refinance Loan.
Also known as VA Streamline Refinance, an IRRRL allows veterans to take advantage of lower interest rates without them having to request a new VA Certificate of Eligibility. In many cases, no appraisal or minimum credit score will be required by lenders, and IRRRL’s themselves can be completed with minimal fuss and very little paperwork.
The important thing to keep in mind when applying for IRRRL refinancing is that VA veterans will not be allowed to remortgage to get cash out of their property. The good news, however, is that sums of up to $6,000 (depending on which VA lender you approach) may be payable in the event that you need to carry out essential repairs to your property.
VA Cash-Out Refinancing
Just like with conventional home financing, veterans can benefit from home equity cash out opportunities, providing that when applying to a new VA lender, borrowers can satisfy the same eligibility criteria which they would be expected to when applying for regular VA financing.
Refinancing to a VA Loan
Are you a veteran with a conventional home loan? If so, (and if you can satisfy all VA veteran eligibility requirements) Cash-Out refinancing can be beneficial due to the fact that Cash-Out refinancing completely replaces an existing home loan with a new one. This being the case, a Cash-Out loan can help you switch to a more beneficial VA loan with no monthly mortgage insurance liabilities and no out-of-pocket closing costs.