VA Refinance Loan Options

Refinancing can be a great option to help reduce your monthly mortgage payments and save money or to tap into your equity and pull as much as 90% out.  The Department of Veterans Affairs provides options to do both, a VA Streamline Refinancing loan or VA Cash-Out Refinancing loan.

Option 1: VA Streamline Refinancing Loans (aka Interest Rate Reduction Refinance Loan (IRRRL))

A VA Streamline Refinancing loan allows you to reduce your monthly payment or shorten or extend the term of a VA loan.  Minimum documentation is needed as the VA does not require a credit check or appraisal (some lenders may require these).  The IRRRL also allows many borrowers to bypass the much stricter underwriting standards that lenders impose on conventional loans.  It’s called the Streamline Refinancing loan because it’s typically a more streamlined approval and underwriting process.

VA Streamline Refinancing Benefits:VA Home Refinance Loan

  • Lower monthly payments
  • No out-of-pocket costs required
  • Lower funding fee (generally .5 percent of total loan amount)
  • Funding fee and closing costs can be added to loan balance
  • Allows refinances up to 100 percent of home’s value
  • No appraisal required, in some cases
  • No income, employment or credit report verification required by the VA
  • No termite report required by the VA
  • No need to obtain a new Certificate of Eligibility
  • Extend your repayment period

Option 2: VA Cash-Out Refinancing Loans

With a VA Cash-Out Refinancing Loan homeowners can refinance up to 90% of the appraised value plus all closing costs (conditions apply).  Whether you need money to make home improvements, consolidate two mortgages, consolidate high interest credit card debt or pay for your child’s college tuition a “Cash Out” home loan is an excellent option provided to military homeowners who have equity in their homes.  This option was made available by the The Veterans’ Benefits Improvement Act of 2008.

VA Cash-Out Refinancing Benefits

  • Take advantage of the equity in your home
  • Pay for home improvements
  • Consolidate two or more mortgages
  • Use cash for emergencies and more
  • Pay off higher interest rate debts
  • Lower monthly mortgage payments
  • Lock in a lower interest rate
  • Extend your repayment period


VA refinancing loan eligibility is similar to home purchase VA loans.  Speak to an approved VA mortgage lender to determine if you qualify.


Remember with a VA loan it’s easier to qualify than a conventional loan, loans are backed by the U.S. government and there is no private mortgage insurance!

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