VA refinancing gives you two options to choose from:
- VA Cash-out Refinance Loans
- Interest Rate Reduction Refinance Loan ( IRRRL or Streamline)
If You Need Money
VA Cash-out Refinance Loans are available for your principal residence. The VA guidelines allow you to refinance up to the appraised value of the home, with most of the closing costs included in the loan amount. There is no minimum amount of time that you must have your existing loan or own your home, but your home must have sufficient equity to qualify for this loan. A pest control clearance may be required.
If You Just Need a Lower Rate
VA has created a loan program called the Interest Rate Reduction Refinance Loan (IRRRL) or Streamline Refinance. This loan provides a way for current VA homeowners to reduce or lower their interest rates with no out of pocket expenses and very little documentation. This is only available to veterans who are refinancing their original VA mortgage for which they have used their VA eligibility. Borrowers may not receive cash from a VA streamline refinancing home loan or IRRRL nor can they pay off any existing second mortgages. In some cases, a new appraisal may not be required, subject to lender requirements. As a requirement for the Streamline VA refinance loan, you must receive some type of tangible benefit such as a lower monthly payment or a shorter loan term that will improve your situation.
If you are in the Sacramento, Roseville, Rocklin or greater Sacramento area we are here to help you with your VA refinancing options.
Give Doug Bullwinkel to discuss your VA refinance options. Email at: dbullwinkel@EnvoyMortgage.com