The VA loan is one of the most popular loan programs in America, providing qualified military homeowners with lower rates and an easy way to decrease their monthly mortgage. A VA loan is particularly appealing to eligible veteran and military home buyers because of exclusive benefits, namely, it enables them to buy a home with no down payment or refinance up to 120% of their home.
However, many service members have questions about the rules and requirements surrounding a VA loan and may not understand how this exclusive benefit works or if you can refinance a VA loan. In this article, well be breaking down the refinancing options for VA loans and what each of them have to offer.
Yes! You have several options when it comes to refinancing your home with a VA loan. Later on, well take a look at each of these loan type options, what kind of borrower best suits each, and what their benefits are. For right now, lets cover some other common questions.
To refinance with a VA home loan youll have to meet the required waiting period of 212 days or 6 payments worth of time whichever period is longer. You can expect this required waiting period regardless of what VA refinancing option you choose.
For qualified borrowers with strong credit history and an anticipated long-term stay at their home, refinancing a VA loan can make a lot of sense. But why exactly should you refinance with a VA loan? Here are some of the benefits that this process has to offer:
When it comes to a VA loan refinance, youll have three different options to choose from. You can reduce the interest rate on your loan with an interest rate reduction refinancing loan (IRRRL) or get cash-out financing. Well also touch on when you may be better off refinancing into a conventional loan.
Lets dive deeper into these three types of mortgage refinance to find one which may best suit you and your financial needs:
The VA Streamline refinance (IRRRL) also known as an interest rate reduction refinance loan is available for homeowners who currently have a VA loan and want to lower their interest rate. This type of refinance typically allows for little or no out-of-pocket costs, close faster and with less documentation than an average home loan.