Types of VA Loan refinance options.
When it comes to VA loans, two options for refinancing exist: Interest Rate Reduction Refinance Loans (IRRRL) and a more traditional Cash-Out Refinance.
The IRRRL option is built to get veterans who are currently paying off a mortgage an even lower interest rate. In order to qualify, you must already have a VA loan-backed mortgage and the new rate must be lower than your original, or you are refinancing from an adjustable rate loan to a fixed rate.
Interest Rate Reduction Refinance Loans are helpful for those still active in the military or who have completed their service.
The other option for VA refi is Cash-Out, which allows owners to take money out for repairs or improvements on a home. Whether you have a conventional loan or VA-backed one, veterans can still fold that into the Cash-Out VA refinance.
Regardless of which loan you are interested in, be aware that lenders will likely need to review your credit score, income, and may need to get the property being refinanced appraised.
Am I eligible for a VA refinance loan?
To qualify for VA loan refinance, applicants must:
- Be a service member on active-duty
- Be an honorably discharged veteran
- Be the spouse of a current service member or veteran
- Widows or widowers of a veteran must be unmarried when refinancing
- Unless you are applying for a IRRRL, a spouse must have died in the line of duty or from a service-related injury
- Have a minimum FICO credit score of 580
- Have an acceptable debt-to-income ratio
Begin the VA loan refinance process today and get the latest fee and rate information. Call 800-620-6292 to speak with one of our Loan Officers. Or fill out this no obligation form and one of our specialists will contact you.