VA Refinancing Options
Cash-Out Refinance Loan
Mortgage Options offers a VA Cash Out Refinance Loan to allow service men and women to take cash out of their home equity for other concerns such as making home improvements, paying off debt, or in case of an emergency. The VA Cash Out Refinance Loan can be used regardless of whether the existing loan is a FHA, USDA, or conventional loan. The VA Cash Out Refinance Loan will replace your existing loan.
A VA Cash Out Refinance Loan does have some eligibility requirements. For example, in order to receive a VA Cash Out Refinance Loan, you must provide a new appraisal of the property, because this directly affects the amount we can lend. VA requirements dictate that the maximum loan amount cannot exceed 100% of the property’s value, and lenders are often allowed to dictate their own limits for a Cash Out Refinance Loan.
Additional requirements include proof of employment and a credit check. These requirements may be met by providing pay stubs and/or W-2 forms, copies of your most recent tax return, and a credit report.
Interest Rate Reduction Refinance Loan (IRRRL)
Mortgage Options offers a VA Interest Rate Reduction Refinance Loan (IRRRL), sometimes referred to as a Streamline Refinance, to help you reduce the interest rate of your existing VA Loan, thereby reducing your mortgage payment. We can also assist you in obtaining an IRRRL to switch from an adjustable rate mortgage to a fixed rate mortgage. It should be noted however that using an IRRRL to transition from an adjustable rate mortgage to a fixed rate mortgage may increase your interest rate.
Because a VA IRRRL refinances an already existing VA loan, it reuses the VA entitlement you previously utilized for the existing loan. No other loan besides your previously existing VA loan may be paid from the IRRRL. A new COE is not required for this loan, but you can certainly provide your original COE if you still have it. Additionally, in order to qualify for a VA IRRRL, you must certify that you previously occupied the home.
A VA IRRRL does not require an appraisal or credit underwriting package when you apply. It is possible to obtain a VA IRRRL without incurring any out of pocket costs by including the new costs with the new loan or making the interest rate high enough for the lender to pay the costs.
Both Refinancing Options
Both VA Cash Out and Interest Rate Reduction Refinance Loans require the applicant to pay a funding fee to reduce the cost to taxpayers. Just as with a VA Purchase Loan, the funding fee can be included in the loan itself. Alternatively, the fee could be waived for disabled veterans or for the spouse of a veteran who died in service or from a service related disability.
If you have any questions or need assistance with your VA IRRRL or Cash Out Refinance, please call us at (866)-456-5511 or visit our Contact Us page.