The Benefits of Refinancing Your VA Loan

Many homeowners find themselves in possession of a home loan acquired several years ago that has a higher interest rate than those that are currently available.

These individuals may not be aware that the VA guaranteed home loan program also has a number of refinancing options to help them get a better interest rate.

Here are a few points to know about how the VA Guaranteed Home Loan Program that provides home loans for veterans can also help you refinance your mortgage.

The Interest Rate Reduction Refinance Loan

This option, often called the IRRRL, is a convenient way for veterans, active duty service members and current National Guard and Reserve members to reduce their monthly mortgage payments.

Surviving spouses can also benefit from the program. Applicants for these loans should remember several important points:

A Certificate of Eligibility proving your service record is not required. However, if you have the Certificate, it can be used to show the prior use of your entitlement.

No appraisal is required for an IRRRL.

No credit underwriting will be required to qualify for an IRRRL.

The IRRRL can be done with no money “out of pocket,” that is, the costs of acquiring the loan can be rolled into the loan amount.

Terms for an IRRRL can vary, so applicants are encouraged to try several different lenders.

When changing from an adjustable loan to a fixed rate loan, a higher interest rate may apply.

You cannot take cash out of your equity in the home with an IRRL.

You do not have to reside in the home when applying for an IRRL. However, you will have to prove you resided in it at an earlier time.

A funding fee that helps to fund the IRRL program is required. This fee can be rolled into the loan.

The IRRL requires minimal documentation. No credit score or employment verification is needed.

No loan limits are set by the VA. However, limits are placed on the amount the VA can guarantee to the lender. This amount is generally four times the entitlement figure.

The Purchase and Cash-Out Refinance Loan

The VA home loan program also offers a cash-out refinance program that allows you to take money out of your home equity for expenses, such as paying credit card debt, paying for education or making improvements on the home.

A few important points to remember about the cash-out refinance option are:

Unlike the IRRL, a Cash-Out Refinance requires both employment verification and credit score.

Generally, a minimum credit of 620 is needed to qualify. However, lenders may require a slightly higher score.

A few important points to remember about the cash-out refinance option are:

For a Cash-Out Refinance, no more than 100% of the property’s value can be borrowed.

However, some lenders may only allow the loan to cover 90% of the home’s value.

A few important points to remember about the cash-out refinance option are:

A new appraisal is required for a Cash-Out Refinance.

You can roll the funding fee into the loan or pay it in cash.

Individuals with VA loans can benefit from either of these two options.

Jimmy Vercellino, VA Loan Specialist helps veterans obtain the loans they are entitled to.

He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com

For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets 7702 E. Doubletree Ranch Road, Suite 220

Scottsdale, AZ 85258 Phone: (480) 351-5904

Email: jimmyv@fcbmtg.com