Taking advantage of your well-deserved veteran benefits is a smart idea, especially when it comes to refinancing your home.
If you previously used a VA purchase loan to buy your house, you know what a difference the government-backed loan program can make for veterans and military families looking to put down roots.
Not only was the process faster and simpler, but the terms and requirements likely beat those of any conventional loan, plus you were able to save money on up-front costs and on your monthly mortgage payments.
Good news: VA refinance loans are just as beneficial.
Why refinance your existing VA home loan?
For the same reasons you would refinance a conventional loan.
Do you want to secure a lower interest rate and lower your monthly mortgage payments? Consider a VA refinance loan.
Are you looking for a little extra cash to cover a home improvement project, consolidate debt, pay your tuition or purchase a new car? A VA refinance loan can help with that, too.
You have two main options: IRRRLs or Cash-Out Refinance Loans
The Interest Rate Reduction Refinance Loan (IRRRL) program, also called the Streamline Refinance program or, simply, an “earl,” allows veteran homeowners who already have a VA-backed home loan to refinance it into a lower rate and save money on their mortgage payments each month.
IRRRLs can also help borrowers refinance from an existing adjustable-rate mortgage (ARM) to a fixed-rate loan to stabilize their monthly payments; however, keep in mind that doing so may cause a slight increase in interest rates.
The IRRRL process is fast and easy, often with less paperwork, no appraisal or credit score required, and typically no out-of-pockets costs. Veterans are not required to be currently living in the home to be eligible, but they must have plans to live in the home they are refinancing.
Another great thing about IRRRLs is that veterans do not need to provide a new Certificate of Eligibility (COE).
A Cash-Out Refinance Loan allows homeowners to use cash from their home equity for renovations, large purchases, or to pay off debt. They can also be used to refinance a non-VA loan into a VA loan.
With Cash-Out Refinance Loans, the dwelling must be the borrower’s primary residence, and in some cases up to 100% of the value of the home can be refinanced. Veteran applicants will need to work with a lender and provide a COE to qualify for a Cash-Out Refinance Loan.
Delinquent mortgage? You can still refinance through the VA.
Unlike with conventional loans, VA loan borrowers are not prohibited from refinancing if they have a delinquent mortgage.
There is a prior approval process, but if you have a valid reason for falling behind in your payments, it is possible to still get approved for either an IRRRL or a Cash-Out Refinance Loan. In some cases, late payments or charges from the old loan can also be refinanced.
Have all your ducks in a row before you apply—including a copy of your DD214.
It goes without saying that VA-backed refinance loans and other benefits are only available to veterans who can provide proof of service, and the simplest way to do that is to always have a copy of your DD214 on hand.
Veteran-owned DD214Direct helps you get the documents you need, when you need them.
Our cutting-edge technology platform and keen knowledge of government protocol and procedure allow us to deliver your documents faster than competitors. We physically stand in line at the records repository and manually coordinate your order, freeing up your time and easing your worries about whether or not you will get your DD214.
Much like paying a small fee to have your taxes done by a professional, DD214Direct provides the service and convenience you’ve been hoping for, plus we make it a lot easier.
Instead of having to download, print, sign and fax your document request form, you can submit your order directly through our website with the ease of e-signature technology from a desktop, laptop or mobile device.
Once we locate your DD214, we will email you a copy immediately—a service not offered by the government. And tracking your request through us is simple, so you never have to worry about long hold times and inconclusive answers.
Ready to get started? Click here to begin the order process.