skip to Main Content

VA Refinancing Types

Regular Refinance Loans
A regular refinance loan does not have to be an existing VA Loan. If you have a conventional loan, FHA or USDA loan, refinancing to a VA loan is a great opportunity to take advantage of the VA Home Loan Program and enjoy the many available benefits.
A Cash-Out refinance loan gives qualified military borrowers the opportunity to refinance their conventional or VA loan into a lower rate while extracting cash from the home’s equity.
With the Cash-Out refinance, you have the opportunity to turn the equity in your home into cash.

Use the cash:

  • To pay off debt
  • Make home improvements
  • Pay for college tuition

Qualified military borrowers can refinance up to 100 percent of their home’s value. The cash out refinance loan shouldn’t be confused with a home equity loan, which is a second loan that runs alongside your current loan. The VA Cash-Out refinance loan replaces your existing mortgage instead of complementing it.

Qualified military homeowners can refinance and reduce their interest rate which will in turn can lower monthly payments. With interest rates at new historic lows, now is a great time to use your VA benefit to lock in these low rates.

Whether refinancing a conventional, FHA or USDA loan, the Cash-Out refinance option is available regardless of loan type. Many homeowners choose the VA Cash-Out refinance option over other types of loans because of the ability to repay the loan over a longer period of time, and typically, the Cash-Out refinance option comes with a lower interest rate.

VA Interest Rate Reduction Refinance Loan (IRRRL)
Also know as the Streamline refinance, the IRRRL is one of the best options for military homeowners who already have a VA Loan and would like to refinance into a lower monthly mortgage rate.
This refinance type is relatively easy and can be completed quickly, due to the fact that homeowners are refinancing from one VA Loan product to another.

Major Advantages include:

  • No required appraisal in most cases
  • No need to obtain another Certificate of Eligibility (COE)
  • Little to no out-of-pocket costs
  • Funding fee can be added to the balance of the loan

There are only a few requirements and stipulations with the IRRRL. Primarily, the borrower is not allowed to receive any cash back and the borrower must also certify that he or she currently or has previously occupied the property.

Back To Top