Understanding Who Qualifies To Refinance A VA Loan

1
Understanding Who Qualifies to Refinance a VA
Loan
2
The U.S. Veterans Affairs Administration has
helped provide home loans for veterans since 1944.
3
The program allows both veterans and active duty
service members to get affordable mortgages that
the VA guarantees to be repaid to lenders.
4
The program has been expanded to include
refinancing these loans, and certain
qualifications apply.
5
Use of VA Loan Eligibility
6
In order to qualify for a refinance loan through
the VA, you must have used your eligibility for
the initial home.
7
In other words, it must be a VA loan to VA
refinance.
8
A new Certificate of Eligibility is not required.
Your previous Certificate of Eligibility serves
as proof of the use of your entitlement.
9
Loan Limits
10
VA refinance loans are subject to certain loan
limits as defined by the program.
11
These limits cap the amount of liability for
repayment required by the program. Each county
determines the amount of loan limit.
12
Generally, lenders will approve up to four times
the basic entitlement amount of 36,000 for a
home loan, without a down payment.
13
Funding Fee
14
A funding fee is required for all those who apply
for loans through the VA Guaranteed Loan Program.
15
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.
16
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.
17
Certain veterans with disabilities and surviving
spouses are not required to pay a funding fee.
18
Interest Rate Reduction Refinance Loan
19
The program allows refinancing up to 100 percent
of the homes value.
20
Although credit checks and new appraisals are not
required under the program, lenders may impose
these requirements under their own rules.
21
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.
22
The IRRRL program cannot be used to pay off a
second mortgage. Generally, the second mortgage
must be approved.
23
Your current mortgage payments must be up to
date, with no more than one 30-day late payment
within the past year.
24
Cash-Out Refinance Loan
25
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.
26
The above qualifications apply similarly for
these loans.
27
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.
28
You must also certify that you will occupy the
home being refinanced.
29
Certain costs associated with refinancing can
increase the cost of the loan to a greater amount
than the fair market value of the property.
30
These costs can include state and local taxes,
discount points and other closing costs.
31
Applicants for refinancing should always take
these additional costs into account when
determining if refinancing their VA loan is a
favorable idea.
32
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.
33
Be a proud homeowner today.
34
For more details call 480-351-5904 or visit the
site www.valoansforvets.com
35
VA Loans for Vets 7702 E. Doubletree Ranch Road,
Suite 220 Scottsdale, AZ 85258 Phone (480)
351-5904 Email jimmyv_at_fcbmtg.com