Thinking of Refinancing Your Mortgage?
In addition to home purchase loans, the VA backs refinance programs for qualified military and veteran homeowners. If you’re looking to lower your monthly payments, cash in on your home equity or shorten your loan term, a VA refinance might be a good option for you.
VA Refinance Programs
There are two VA refinance programs available: the VA Cash-Out Refinance and the VA Streamline Refinance, also known as the VA Interest Rate Reduction Refinance Loan (IRRRL). Each program offers different benefits and features, so be sure to carefully evaluate your current situation and goals to determine which option works for you.
VA Refinance Eligibility
Eligibility requirements for a VA Refinance loan are similar to those for a VA home purchase loan.
The VA Refinance Loan Process
The VA mortgage refinance process varies depending upon which program you choose. VA Streamline Refinances require less paperwork and some of the regular steps like an appraisal are not required. In contrast, VA Cash-Out Refinances follow similar processes that VA purchase loans do, including credit verification and a home appraisal. The entire process will typically take longer with a Cash-Out than a Streamline loan, with closing times taking an average of 45 days. However, because of the limited requirements, VA Streamlines can take much less time.
The VA Funding Fee
There is a VA Funding Fee required when using a VA refinance program. This one-time payment goes directly to the VA and helps them sustain the VA home loan program and avoid charging veterans more costly expenses, like private mortgage insurance. The Funding Fee is determined based on the branch of service, down payment, number of times used, and disability. You may pay the Funding Fee upfront or finance it into your mortgage payments.
VA Refinance Options
The Cash-Out option gives qualified homeowners the opportunity to
refinance their existing VA or non-VA mortgage to access the equity
in their homes through cash back.
– Follow standard VA loan credit, appraisal, and underwriting processes.
– No restrictions on what you can do with the cash back.
– You can refinance a VA, USDA, FHA or conventional loan.
– Up to 100% financing*
(Not offered in Texas. *Cash in-hand is limited.)
VA Streamline IRRL
The Streamline IRRRL (Interest Rate Reduction Refinance Loan) provides an efficient way to refinance one VA loan into another VA loan with a better interest rate.
• VA-to-VA loan refinancing only
• No appraisal or credit underwriting required
• No cash back may be taken
• This option is sometimes used by homeowners who have an existing
ARM (Adjustable Rate Mortgage)
Other Refinance Options
Everyone’s financial circumstances and goals are unique, so there may be non-VA refinance options that would work for you.
Please reach out to our team to get started, or apply online now below.
Apply for a VA Refinance
Apply on our website or call one of our branch locations to get started on your VA Refinance. An Aligned Mortgage loan expert can help you make a financial assessment and provide recommendations for your home refinance loan.