Whether you’re renovating to add convenience, improve your home’s aesthetic, or increase its overall value, one thing’s for certain: VA refinancing can help make it happen.
Rather than scrimping and saving, pulling money from your 401K, or cutting corners and DIYing it, a VA refinance can tap your existing home equity to give you cold, hard cash to put toward your projects. Use it to pay for quality materials, top-notch contractors, or even professional designers to help you get the most from your renovations. Heck, you can even use it to pay for a hotel while your renovations are underway.
Does a VA refi sound like something you could use to better your home? Here’s what you’ll need to know first:
- Eligibility requirements: You must be a former or active-duty service member (or the spouse of one), have a minimum FICO score of 580, and have an acceptable debt-to-income ratio (generally 36 percent or lower). Veterans must have been honorably discharged.
- VA refi loan options: You have two choices when getting a VA refinance: 1) an Interest Rate Reduction Refinance Loan, which helps you lower your interest rate and, subsequently, your monthly payment or 2) a Cash-out Refinance, which turns your home equity into cash that you can use toward upgrades, renovations, college tuition, or even just a vacation.
- The process: You’ll need to file an application just as you did with your original mortgage, and your lender will review your credit score, credit history, monthly income, and monthly debts. They also may request an appraisal of your property. You do not have to use the same lender who handled your original mortgage loan. In fact, your best bet is to shop around and find the best rate.
In order to reap the benefits of a VA refinance, you’ll want to time your application right. Make sure you know what the current interest rate on your home loan is, and once market rates dip below that, you’ll be in a good place to refinance your mortgage. Keep in mind, VA loans typically come with lower rates than traditional 30-year mortgages, so check with an Embrace loan officer to get an accurate estimate of what rates you could expect on a VA refi in today’s current market.
More on VA Refi Loans
Have questions? Just want to learn more about VA refinancing? Then contact Embrace Home Loans or visit Embracehomeloans.com/refinance/VA today. We’re here to help.