Purchase and Cash-Out Refinance Home Loans
A VA Purchase Loan can help a qualified borrower purchase a home at a competitive rate with multiple financing options up to $1,200,000 without putting any money down. The federally-backed VA loan has distinct advantages over traditional loans and with the 2017 VA loan limits, borrowers in high-cost counties may be able to purchase homes above the limit without a down payment.
Qualified borrowers can also take advantage of lower interest rates and decrease their monthly mortgage payment by refinancing with a VA loan. The VA Streamline Refinance, or the Interest Rate Reduction Refinance Loan (IRRRL), and the VA Cash-Out refinance are two programs available for homeowners to refinance to a lower rate.
VA Streamline (IRRRL) Refinancing
If you already have a VA loan and would like to refinance for a lower monthly mortgage rate, the streamline refinance may be the best option. With this type of refinance there is no required appraisal in some cases, little to no out-of-pocket costs that can be rolled into the closing costs of the loan, and no Certificate of Eligibility since homeowners are refinancing from one VA loan product to another. Choosing the IRRRL product inhibits a borrower from receiving any cash back at close and you must be current on your mortgage with no more than one 30-day late payment within the past year.
VA Cash-Out Refinance
Qualified veterans have the option to turn equity in your home into cash with a VA Cash-Out refinance. Not to be confused with a home equity loan, the VA Cash-Out refinance will replace your existing mortgage at a lower interest rate while extracting cash. Program aspects include:
If you are refinancing from a conventional or other mortgage program to a VA cash-out refinance you are not required to take any cash out.
This type of refinance does follow the standard VA loan underwriting and credit process
Closing costs and funding fees can be rolled into the loan amount
You must certify the property being refinanced will be occupied