Veterans looking to save money on their mortgage have access to a range of refinancing options.
If you’re considering refinancing through the VA, here are a couple things that you should probably know. But before we go over some of the programs that the VA has to offer, let’s briefly touch on some of the eligibility requirements to get a loan.
Eligibility For A VA Loan
Homeowners looking to refinance will be glad to know that the VA has broad eligibility standards. Active-duty service members, National Guard Members, Members of the Reserve and the spouses of deceased veterans are all able to qualify. Even if you’ve been discharged from the military or are retired then you’ll still be eligible.
Members of the Air Force, members of the Navy, the Coast National Guard, and officers at the National Oceanic and Atmospheric Administration are also among the ranks of those eligible. There is, however, a minimum length of service normally required in order to be eligible. Depending on which branch of the military you’re stationed in, this time can vary between 181 days to two years.
The Benefits of Refinancing Through The VA
One of the majors advantages of refinancing through the VA is that homeowners are able to refinance up to 100% of the value of their home, and they don’t need to buy mortgage insurance. It isn’t even necessary to first build up equity in your home loan before refinancing with the VA. Most non-VA loans typically allow the borrower to refinance only after they’ve built up a certain amount of equity. If you’re eligible to get a VA loan, then there are a few different paths you can take depending on what you’re needs are. Here are three options you can choose from if you’re looking to refinance.
1. Lowering the Interest Rate On A VA Home Loan
Homeowners who originally acquired their home loan through the VA have the option of refinancing their loan to reduce monthly payments or even shorten the duration of their mortgage. This is the streamline refinance program that the VA offers. What’s good about it is that it requires minimum documentation. The VA also does not require a credit check or an appraisal, whereas most other lenders for a conventional loan would require a credit check and an appraisal.
2. Cash-Out Refinancing Through The VA
Veterans who have built up equity in their home and whose loan is already covered by the VA have the option of going through the cash-out refinancing program. This is a great option for veterans who have two mortgages and are looking to consolidate them into one. It’s also possible to get cash back after you’ve refinanced, according to the VA’s rules.
3. Refinancing A Conventional Loan Through The VA
The department of Veterans Affairs gives service members the option of refinancing their home loan even if their original loan was not backed by the VA. This essentially turns the old loan that you had into a VA loan. As mentioned previously, the VA allows you to refinance up to 100% of the value of your home loan. So, because the VA lets you convert your conventional loan into a VA loan, it’s possible to refinance 100% of the value of your conventional loan after it’s converted.
Whether your home loan is backed through the VA or even if it’s a conventional loan, there are great refinancing options at your disposal that could make your life a lot less stressful. Over 20 million service members have taken out a home loan or refinanced through the VA. So why wait any longer? Call your local VA office today to find out how much you could save.
