Refinance Options for Military Personnel
A VA refinance loan can be a great option for qualified veterans, military personnel, and their spouses. Whether you’re looking to refinance for a lower interest rate, a shorter payment term, or to take cash out, as a veteran you have a number of options to lower monthly payments, consolidate debt, or find the cash you need to make home improvements. Qualified borrowers can even refinance their existing conventional loan into a VA loan.
Get a Lower Rate
The VA Interest Rate Reduction Refinance Loan (IRRRL) allows those with an existing VA loan to obtain a lower rate and/or shorten their payment term with no appraisal or income asset documentation required. The VA IRRRL is a streamline program—that means there’s minimal paperwork, faster approvals, and lower closing costs which may be rolled right into the total loan amount. And, while the VA IRRRL doesn’t require a credit check, most lenders do ask for a minimum credit score of 620. The only other caveat—there’s no cash-out option with a VA IRRRL.
Cash-Out VA Refinance Loan
For those vets with a VA or conventional loan who are looking to leverage the accumulated equity in their home to remodel, pay off student loan debt or outstanding medical bills, a VA cash-out loan is the way to go. There’s no appraisal, income asset documentation, or private mortgage insurance (PMI) required. And, because the government guarantees a VA refinance cash-out, borrowers may refinance up to 100% of their home’s value to pay-off an existing mortgage and roll the closing costs right into their new loan.
Proof of Eligibility
Establishing eligibility to qualify for a VA Loan is not difficult and may be accomplished with a simple phone call. The criteria for Certificate of Eligibility or COE are as follows:
- You must be an active member of the armed service or have received an honorable discharge
- Having served 90 consecutive days during wartime
- Having served 181 day to two years during peacetime
- Having served a minimum of six years in the National Guard or Reserves
- The serving spouse of a service member who died in the line of duty or as the result of a service-related injury and never remarried
There are four different ways to obtain a VA Loan Certificate of Eligibility:
- Through a VA-approved lender via the webLGY system found on the VA Information Portal
- Online through the VA’s eBenefits portal
- Contact VA eBenefits at 1-877-827-3702
- Apply by mail with VA Form 26-1880
A VA refinance loan is a benefit that you’ve earned for serving your county and just one way for the country to thank you for your service.