VA Refinance

VA Refinance

The VA Home Purchase Program was developed to assist veterans who have served or who are currently serving in the armed forces to purchase homes. VA home loans are an outstanding benefit to the men and women who have served our great nation. Veterans that qualify can purchase a home with no money down, which makes buying a home extremely affordable. In addition, VA loans also offer very flexible underwriting guidelines, no monthly mortgage insurance and very competitive financing options.

VA Streamline Refinance

The VA Streamline Refinance Program also known as “The VA Interest Rate Reduction Refinance Loan” (IRRRL) is designed to lower your interest rate by refinancing your existing VA loan. If you are currently on a VA loan and would like to lower the interest rate by refinancing, the VA has made it easy for you. Since you are already qualified for a VA loan initially it’s a very simple and quick process to lower your monthly mortgage payments by taking advantage of this popular streamline refinance program.

Why Are Streamlines So Great?

The VA Streamline Refinance Program has reduced documentation, does not require an appraisal and is set up to let you get a lower interest rate in the easiest possible way. Many veterans refinance to lower their interest rate while others benefit from shortening the term of their loan to save on interest payments over the life of the mortgage. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

What Are the Advantages of a Streamline?

  • Fast turnaround time
  • No appraisal required
  • No income verification
  • No debt to income calculation
  • Streamlined paperwork process
  • Primary, investment or 2nd home OK

What Are the Requirements?

  • Minimum credit score 600
  • Must be able to lower your payment or term
  • No late payments over 30 days in last 12 months

What About The 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 Cash Out Refinance

The VA Cash Out is an excellent way to leverage the equity you have in your home to be able to pay off debt or simply pull out cash. It’s one of the most effective ways to consolidate high interest debt, including credit cards under one low fixed payment per month which may be tax deductible. You can also use it to refinance out of other types of mortgages like a conventional loan to get more favorable terms or even pay a second mortgage off with no mortgage insurance.

What Are the Advantages of a Cash Out?

  • Cash Out up to 90% LTV
  • Pay off high interest debt
  • Can roll in all closing costs
  • Debt to income ratio up to 50%
  • No monthly mortgage insurance

What Are the Requirements?

  • Primary residence only
  • Minimum credit score 600
  • No late payments over 30 days in last 12 months

What About The VA Funding Fee?

  • The funding fee for first time use is 2.15% for a veteran of active duty and 2.4% for National Guard or Reservist
  • For second or subsequent use the funding fee is 3.3% for a veteran of active duty and 3.3% for National Guard or Reservist

Frequently Asked VA Refinance Questions:

What are the documents I will need?

  • Copy of driver’s license
  • Copy of social security card
  • Copy of your mortgage note
  • Copy of your DD Form 214 for discharged veterans
  • Statement of service for active military personnel
  • Copy of your Certificate of Eligibility (COE)
  • Contact information for insurance agent

Is it possible to skip 2 mortgage payments?

In some cases it may be possible to skip (2) mortgage payments as part of your refinance. It will depend on when in the month you close your loan.

There is little to no equity in my home, can I still refinance?

Yes, you can. A VA streamline will allow you to refinance without an appraisal

Will there be an income check to qualify?

No, the lender will only verify if you are still employed but will not verify actual income. That is why debt to income is not a factor in qualifying for a VA refinance.

Do I need a Certificate of Eligibility for a Streamline?

Typically this is not required since used the COE to qualify for the original VA mortgage.

Will my loan amount increase by doing a Streamline?

If you choose to roll in your closing costs instead of paying for them, closing your loan amount will increase by this amount including the VA funding fee. But, by skipping up to (2) mortgage payments in some cases, receiving escrow money back after closing, and the savings per month your breakeven on the streamline is realized very quickly.

Can I subordinate a 2nd mortgage?

Yes you are allowed to subordinate a 2nd mortgage and just payoff your first mortgage as long as the lien holder will allow it.

Is there a limit to how much I can cash out?

No, you can cashout up to the full 90% of the appraised value or you can cash out less if you choose without penalty.