VA Refinance loans are backed by the Department of Veteran Affairs. This special loan program is designed specifically for Women and Men who are active military, veterans, or surviving spouses. The objective of this program is to help citizens with VA Entitlement to be able to refinance into a lower payment or shorten their term without mortgage insurance. (Please note – the total finance charges may be higher over the life of your loan).

va refinance

What Type of VA Refinance Loans are available to qualified people?

 

IRRRL

The Interest Rate Reduction Refinance Loan  or VA Streamline is designed to help qualified service people to reduce the interest rate they are currently paying to a better rate.

Benefits of IRRRL

 

  • No appraisal required
  • No income check required
  • Primary, investment or Second home allowed
  • Closing fees can be included into the new mortgage
  • No out of pocket expenses or upfront fees
  • Competitive interest rates
  • Reduced paperwork
  • Fast underwriting turn times

 

VA Refinance Guidelines of Eligibility

 

  • In order to be eligible for the IRRRL you will have to already be in a VA loan
  • You have meet previous VA loan requirements
  • No late payments in the past year on current VA mortgage
  • Your new IRRRL must be lower than current one to qualify
  • Converting an ARM to a Fixed is allowed even if payment goes up
  • 600 FICO score or higher to qualify

Click the image to download a step by step ebook guide on the  “Simple Steps To a VA Loan”.

va refinance

What is a VA Funding Fee

The VA funding fee is collected by lenders at closing and is financed into the loan which helps offset the cost to fund the VA streamline program. It’s a requirement on all VA loans except when the veteran has had a service related disability in which case they can be exempt from paying this fee.

The funding fee is .5% for a veteran of active duty and for National Guard or Reservist

VA Refinance Cash-Out Loan

The VA cash-out refinance loan gives you the ability to tap into you’re home’s equity and use the funds for any of the following uses.

  • Paying off high interest credit cards or installment debt
  • Home improvement
  • Personal use

Just keep in mind that it’s a mortgage loan and not a home equity loan or a line of credit. In most cases, the borrower can take up to 100% of the value of the home to refinance.

Benefits of VA Cash-Out

 

  • No monthly mortgage insurance
  • Refinance 100% of the home’s value
  • Competitive Interest Rates
  • Can finance in closing costs

 

VA Cash-Out Guidelines

 

  • Primary residence only
  • Credit check required
  • 620 FICO or higher
  • VA appraisal required
  • Income check required
  • No late payments in the past year on current VA mortgage

 

What is a VA Funding Fee

The VA funding fee is collected by lenders at closing and is financed into the loan which helps offset the cost to fund the VA streamline program. It’s a requirement on all VA loans except when the veteran has had a service related disability in which case they can be exempt from paying this fee.

The funding fee is 3.3% for a veteran of active duty and for National Guard or Reservist on a cashout refinance

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