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Conventional to VA Loan

Learn how you can convert your conventional mortgage option to a VA Loan with a Cash-Out Refinance.

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Converting a Conventional Mortgage to a VA Loan

Individuals who qualify for a VA home loan, but do not currently have one, may choose to refinance their conventional loan to a VA loan. Refinancing a conventional loan to a VA loan will save the borrower money, among numerous other benefits.

Among the benefits of conventional to VA refinancing are no out-of-pocket closing costs, lower interest rates, no monthly mortgage insurance, and cash out up to 90% of the value of your home.

It is certainly beneficial for eligible individuals with a conventional mortgage to refinance to a VA mortgage loan. There is a minor drawback to this type of refinance - as opposed to a Streamline refinance (only available to those who currently have a VA Loan) - and that drawback is that prospective borrowers will have to go through standard credit and underwriting procedures, including a look at credit scores, debt-to-income ratio, a home appraisal, income verification and other key steps. Additionally, borrowers must pay the VA Funding Fee, but it can be rolled into the entire cost of the loan.

Individuals who are not eligible for a conventional to VA refinance may want to consider taking advantage of other types of refinance. Other refinance options include a VA streamline refinance, which will simply lower rates, and cash out refinance, which allows the borrower to take cash out once the home has built up equity.

Contact a Veteran Loan Center representative today to learn more, or return to the VA Loan Benefits Handbook.

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Website authorization by the New York State Department of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site.

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