How you can choose VA Home Loan Refinancing for positive cash flow
Life happens. And sometimes it requires that you have some cash available, now. Your home might be your best source of equity to borrow against - if the terms and conditions are right.
Your options for refinancing your VA Home Loan are many, when you are military
Let's say you need money to pay for college tuition, or make improvements to your home that will increase its value. A VA Refinancing Loan can be a solid way to get you the cash you need.
VA refinancing involves repayment of your current real estate debt from the proceeds of your new VA mortgage, with the same borrower(s) and the same property. This is called a "Cash Out" Refinance.
Cash-Out VA Refinancing is available for homes that are used as your principal residence. A veteran-owner can refinance up to 90% of the appraised value (not available in Texas) plus all closing costs if the property can withstand the designated loan to value ratio.
There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for VA Refinancing.
The VA also offers an interest rate reduction loan program called the VA Streamline Refinance, providing a way for current VA homeowners to lower their interest rates with little or no out-of-pocket costs.
The VA Streamline Refinance can be accomplished faster and with less documentation than a typical home refinance loan.
VA Streamline Refinancing allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility.
"No Cost" Streamline Refinancing let you refinance your mortgage with no out-of-pocket expenses. The lender may pay the costs in exchange for a higher interest rate. Or you can roll the closing costs into the new VA Streamline Refinancing.
With VA Streamline Refinancing:
- No loan assumptions are allowed.
- The veteran cannot receive any cash back.
- VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing.
- Any other liens must be subordinated to the VA loan.
This loan can be done with "no out of pocket money" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
Talk to your lender about the best refinancing options available for your needs, through your VA Home Loan program. You'll find as always, the VA is here to serve you.
