The VA 100% Refinance
Posted by: Greg Fischer Post date: February 7th, 2011If you’re an eligible Veteran – which usually means 6 months of active duty, or 6 years of reserve or guard service – you have access to one of the most flexible home loan programs available. While VA loans are most often used to purchase a home with no money down, you can also use the benefit to refinance your current residence.
This is especially important today when home values are at their lowest point in many years. A VA loan will allow you to refinance up to 100% of the current appraised value, with no monthly PMI. You can even consolidate some second mortgages into one new low rate mortgage up to the full appraised value of your home today.
While the VA allows this, not all lenders will. In most cases, a lender will cap the new loan at 90% of the current appraised value, unless you already have a current VA loan. If you think that you’ll need to access all of the value of your house today, make sure that your mortgage professional has a 100% VA refinance program.
Of course, if you do have a VA loan on your home today, you may also qualify for an Interest Rate Reduction Refinance Loan (IRRRL). In this case, you may qualify for a new lower rate VA loan with very little closing cost. this streamline refinance is a simple way to reduce your monthly payment with easy qualifying guidelines, even if you have no equity.
It is always a good time to review your options. If you think a VA refinance could reduce the payment of your current NH home, you should ask. It may be a money saving option you should explore.
