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VA Loan Refinance

If you're looking to refinance your VA loan, you have a few choices available to you. There are three different options to consider for your VA loan refinance. These options include VA Streamline refinance, Cash Out refinance, and Conventional to VA refinance.

Streamline refinance, also called an Interest Rate Reduction Loan (IRRL), is a great option for borrowers who currently have a VA loan and wish to lower their interest rate. This type of refinance is beneficial not only because it lowers the borrower's interest rate, but it also requires no out-of-pocket expenses, less documentation, no income or credit check needed, and more lenient occupancy requirements.

Individuals who currently have a VA loan and have built up equity in their home may wish to consider Cash Out refinance (also called Debt Consolidation refinance). This type of refinance can allow the borrower to take cash out or pay off debts. The borrower can receive cash out for up 90% of the value of their home. This money can then be used to pay debt or make improvements to the home.

The last type of VA refinance is Conventional to VA refinance. This option is for individuals who are eligible for a VA loan, but do NOT currently have one. In this case, the conventional mortgage can be refinanced to a VA mortgage. A Conventional to VA refinance is beneficial because it requires no out-of-pocket closing costs, no monthly mortgage insurance, and the possibility of a lower interest rate (regardless of credit history). This type of refinance does, however, require a 2.2% funding fee which the government uses to insure the loan. This fee can be financed into the loan.

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