VA Loan Refinance

Whether you need money to consolidate high interest credit card debt, pay for college tuition, buy a new car, or make home improvements to your home, Today Lending can find a way to get you the cash you need through a refinance.

A VA refinance transaction involves repayment of your current real estate debt from the proceeds of your new Veteran mortgage that has the same borrower(s) using the same property. This is called a “Cash Out” Refinance.

Option 1:

Cash-Out Refinances are used for homes that are used as a principal residence by its owner. That owner can refinance for up to 90% of the appraised value (Not available in Texas) plus all closing costs if the property can withstand the designated loan to value ratio. There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for the loan.

Option 2: Veteran Loan Streamline Refinance

The VA has created a program called the Streamline Refinance to provide a way for current Veteran homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan.

An Interest Rate Reduction Loan or Streamline Refinance allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying. This is only available to veterans who are refinancing their original Veteran mortgage and utilized their original eligibility.

“No Cost” Streamlines let you refinance your mortgage with no out-of-pocket expenses. One option is to let the lender pay the costs in exchange for a higher interest rate. Another option that lets you obtain market rates is to roll the closing costs into the new loan.

BASICS OF THE STREAMLINE REFINANCE

  • No assumptions are allowed.
  • The veteran cannot receive any cash back.
  • VA does not require an appraisal, any income or employment verification, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing. * Each individual mortgage company may require an appraisal, verify employment or have additional requirements at their discretion.
  • Any other liens must be subordinated to the VA loan.
  • This loan can be done with “no out of pocket money” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.VA Refinance EligibilityTypically, you can qualify if you served on active duty for more than 90 consecutive days during wartime or more than 181 days of service during peacetime.Some surviving spouses of veterans who died while in service or from a service-connected disability may also be eligible.Once approved for a VA Loan, your journey does not stop there.
  • Learn more about helpful tips and contract guidelines in our next section.
  • It is important to note that in order to receive a VA Streamline refinance, you must hold an existing VA Loan.
  • For National Guard members and Reservists, the veteran must have served at least six years.
  • Eligibility for a VA refinance is similar to that of a home purchase VA Loan.



 

7 VA FHA Agency
Max LTV 100% 96.5% 95% (min 680 FICO score)
Max Base Loan Amount $200,000 $193,000 $190,000
Upfront Mortgage Insurance $6,600 (3.3% funding fee*) $3377.00 (1.75% UFMIP) $0
Max Total Loan Amount $206,600 $196,377 $190,000
Monthly MI $0 $217.13 $207.42
Total Payment $986.34 $1,154.66 $1,114.51

 

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