VA refinance loans are just one approach we take to thank veterans for his or her contributions to our country.  VA guaranteed mortgages have made it easier for many thousands of Americans that served in the military obtain a lower interest rate on their home or take cash out of it's equity.  VA mortgages most often represent the best available option for veterans to refinance.  In fact, the daily rate for a VA refinance have fallen to the lowest on record over the last several months.

What are the advantages of a VA Refinance?

VA refinance mortgages allow qualified veterans to refinance into a low interest home loan that does not require any monthly mortgage insurance.  This translates into lower monthly payments for the veteran, and other loan programs dont allow for that.  And because Federal Reserve Bank has reduced interest rates again through its MBS purchase program, VA refinance rates are near the lowest levels on record.  VA refinance loans can be used by veterans to lower the interest rate and payment or take cash from their home equity.  With today's rates, there hasn't been a better time to consider a VA refinance with no out-of-pocket costs.

What types of VA Refinance are available?

•  VA Streamline Refinance, also known as "Interest Rate Reduction Refinance Loan" (IRRRL)- A VA Streamline Refinance can be performed quickly and easily to lower your current interest rate to save substantial money.  A VA streamline refinance can usually be completed with no out-of-pocket expenses and no income verification, enabling veteran's to lower their interest rate fast with a very low funding fee of only 0.5%!
• VA Cash Out Refinance - Since 2008, qualified veterans have the ability to obtain cash out of their home equity using their VA benefit up to 90% of the equity of the home at a very low VA refinance rate.  And the veteran may use the cash for any reason including making home improvements and renovations, paying off credit cards and other high interest debt, or simply to have more cash on hand for other reasons.

What are the requirements for a VA Refinance?

• Credit Requirements - While there is no minimum credit score set forth by the VA for a VA refinance rates, most lenders usually require a 620 or higher middle FICO score to qualify.  It may be possible to be approved for a VA refinance if you have a past bankruptcy, but you must have made all payments on time for at least one year (two years for a Chapter 7 Bankruptcy).
• Income Requirements - Two methods are used to qualify a veterans income for VA refinance.  The residual income method is primarily used and is determined by evaluating if the veteran will have enough income to pay for living expenses after paying housing expenses, taxes and other debt.  If the veteran is determined to have satisfactory residual income for the new loan, a debt-to-income ratio is applied.  To obtain a VA refinance loan approval, the veteran's total debt, after the new housing expense, should not exceed 41% of his or her total documented income.
• Service Requirements - For a veteran to qualify for a VA refinance, they must have completed either 181 days of active duty during peacetime, 91 days of active duty service during a time of war or 6 years or more of service in the National Guard or Reserves.

How to get quotes on current VA Refinance Rates.

To obtain an accurate quote for the appropriate VA refinance program, you will need to provide a VA approved lender with some basic information about your current scenario.