Sometimes there is a need for a little extra cash. Especially if you are a veteran or currently on duty, you probably don’t have a lucrative form of income. Maybe you have other loans to pay off or you have tuition fees to may, maybe you just need a little extra cash to pay the bills or buy basic items. In this case maybe just getting a VA loan is not for you; rather a VA refinance would be an excellent option. The VA refinance allows for persons to get a lower monthly rate
What is VA refinance?
The VA refinance program is for personals who are actively on duty or for persons who have served at war since 1940 and is now a veteran at way. This is for persons who already have a VA loan and is now looking to refinance it to get the lowest rates out there. VA refinance basically is a loan system that was set up in order to refinance your loan at the lowest rate possible. It is also known as Interest rate reduction loan. It is also known as an IRRRL which means Interest Rate Reduction Refinancing Loan, also some people may refer to it as streamline VA.
VA Interest Rate Reduction Refinancing
The VA Interest Rate reduction (IRRRL) also known as streamline refinancing is one of the easiest ways in which a veteran can obtain reduce rate on a loan. This is so because it does not require any further appraisals or out-of-pocket costs. The closing cost of their home can also be added eventually to their loan and no down payment would be necessary. In other words the closing cost that would normally have to be pain in a VA loan would not be necessary if a candidate got an IRRRL.
VA Cash Out Refinancing
This allows eligible candidates to take out a loan on a property that is already owned. In this case a veteran is not required have a VA loan in order to receive cash out refinancing. Also in many cases the loan may be more than the possible cost of that property.
Who is eligible?
The same groups of persons that are eligible for a VA are eligible to apply for a VA refinance. These groups of persons are: Active men and women on duty providing that they have been on duty for more than 181 days, members of the reserve and Guard members. Also the wife of a dead veteran that is not remarried is eligible. One main thing that should be noted is that a candidate would have to apply for a VA loan before they apply for a VA refinance. Because what the VA refinances mainly is, is looking for the cheapest possible interest rate and monthly payment on your current VA loan. Also the only exception is in the case of a VA cash out refinancing were the buyer does not have to have an existing VA loan just a property they would like to add a loan to.