Understanding Who Qualifies to Refinance a VA Loan

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Understanding Who Qualifies to Refinance a VA
Loan
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The U.S. Veterans Affairs Administration has
helped provide home loans for veterans since 1944.
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The program allows both veterans and active duty
service members to get affordable mortgages that
the VA guarantees to be repaid to lenders.
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The program has been expanded to include
refinancing these loans, and certain
qualifications apply.
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Use of VA Loan Eligibility
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In order to qualify for a refinance loan through
the VA, you must have used your eligibility for
the initial home.
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In other words, it must be a VA loan to VA
refinance.
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A new Certificate of Eligibility is not required.
Your previous Certificate of Eligibility serves
as proof of the use of your entitlement.
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Loan Limits
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VA refinance loans are subject to certain loan
limits as defined by the program.
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These limits cap the amount of liability for
repayment required by the program. Each county
determines the amount of loan limit.
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Generally, lenders will approve up to four times
the basic entitlement amount of 36,000 for a
home loan, without a down payment.
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Funding Fee
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A funding fee is required for all those who apply
for loans through the VA Guaranteed Loan Program.
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Payment of the fee is required at closing on the
loan. You can either pay the funding fee in cash
or roll it into the financing of the property.
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Funding fees can range from 0.5 percent to 3.3
percent. Funding fees for the second use of your
eligibility are generally higher than the first
use.
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Certain veterans with disabilities and surviving
spouses are not required to pay a funding fee.
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Interest Rate Reduction Refinance Loan
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The program allows refinancing up to 100 percent
of the homes value.
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Although credit checks and new appraisals are not
required under the program, lenders may impose
these requirements under their own rules.
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Unlike a VA Purchase Loan, you do not have to
certify that you will occupy the home. You must
only certify that you have previously occupied it.
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The IRRRL program cannot be used to pay off a
second mortgage. Generally, the second mortgage
must be approved.
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Your current mortgage payments must be up to
date, with no more than one 30-day late payment
within the past year.
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Cash-Out Refinance Loan
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If you wish to take cash out of your home for
medical costs, childrens college or home
improvement costs, the VA offers a Cash-Out
Refinancing Program that allows you to use your
equity to finance these major expenses.
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The above qualifications apply similarly for
these loans.
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You may also refinance as much as 100 percent of
the value of the property. Unlike the IRRL loan,
a credit report, income verification and property
appraisal are required.
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You must also certify that you will occupy the
home being refinanced.
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Certain costs associated with refinancing can
increase the cost of the loan to a greater amount
than the fair market value of the property.
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These costs can include state and local taxes,
discount points and other closing costs.
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Applicants for refinancing should always take
these additional costs into account when
determining if refinancing their VA loan is a
favorable idea.
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He served in the United States Marine Corps, and
now devotes himself to the Veteran home buyer in
the Phoenix area, fulfilling a passion of his
while at the same time helping others achieve
home ownership.
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Be a proud homeowner today.
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For more details call 480-351-5904 or visit the
site www.valoansforvets.com
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VA Loans for Vets 7702 E. Doubletree Ranch Road,
Suite 220 Scottsdale, AZ 85258 Phone (480)
351-5904 Email jimmyv_at_fcbmtg.com