VA Refinancing

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VA Streamline Refinancing

The program is also know as VA Interest Reduction Refinance loan or as VA IRRRL. This streamline refinance requires little documentation, no appraisal, and includes a reduction in the interest rate on the VA home loan.

As a Veteran, you can save two months of mortgage payments 

The benefits of the program include:

• No appraisal-equity
• No upfront money
• No income verifications are required
• No qualifying debt ratios
• No credit report is required
• No termite report is required
• Property does not need to be owner occupied.

Even if you have had previous late payments, you may still qualify for this program.

The requirements of the program include: 

• The mortgage must be current.
• The mortgage to be refinance must already be a VA mortgage.
• The mortgage payments must have been made on time.
• The new mortgage's interest rate must be lower than the current mortgage's interest rate.
• No cash can be received by the borrower from the loan proceeds.
• Subordinate financing may remain in place as long as it is subordinated on title.
• The borrower must have owned the property and had the VA mortgage for at least six months.
• The borrower cannot be late, delinquent, or in default of any federal debt.
• All parties on the original loan must be on the new loan.
• The term of the new mortgage cannot be any greater than the term of the existing VA mortgage plus 10 years and not to exceed 30 years and 32 days.
• If closing costs are wrapped into the loan an appraisal IS required.
• If the veteran whose entitlement was used to obtain the existing VA mortgage has died, regardless of the cause of death, and the veteran's surviving spouse was a co-obligor, the surviving spouse is considered a veteran for the purpose of refinancing under this program.

VA Cash Out Refinancing | Top | Apply Now |

Cash out refinancing is used when borrowers want to pull out more than they owe to take advantage of the built up equity in their home. The borrower is limited by the value of the property compared to the loan amount (i.e., loan-to-value or LTV). 

Cash-out refinances on properties owned more than one year prior to the refinance are permitted on owner occupied principal residences only, and are limited to 90% of the appraised value plus the allowable closing costs.

The benefits of the program include:

• Borrower may receive cash from the proceeds at closing.
• 2nd mortgages may be paid off with the cash-out refinance. The 2nd mortgage must be at least 12 months old.

Here are the basic requirements of an VA Cash Out refinance:

• Applies to owner occupied properties only.
• Loan amounts cannot be greater than 90% of the appraised value or $203,000; whichever is less.
• All borrowers must credit qualify.
• A first lien must exist against the property.
• A 3% funding fee is added to the loan amount at the time of closing. There are no refunds for previous funding fees assessed by the VA.
• The maximum loan term is 30 years and 32 days.
• If the property was purchased more than 1 year before the refinance, 85% of the appraised value plus the allowable closing costs can be cashed out.
• If the property was purchased less than 1 year before the refinance, a cash out of 85% of the sales price plus the allowable closing costs OR the appraised value plus the allowable closing costs (whichever is less).
• The borrower must have sufficient entitlement for the loan (not including any existing entitlement that was used for loans to be paid off by the refinance
• If the purpose of the refinance is to buy out the equity of an ex-spouse, a divorce decree or settlement agreement must be provided to document the equity awarded to the ex-spouse.