I would like to refinance my VA Loan. How do I go about doing this?
IF you are looking to do a RATE and TERM refinance, in other words, you just want to lower your rate and not take any money out to pay other debt, then the loan program that you are going to want is the IRRL (interest rate reduction loan). This is a fantastic product which will let you refinance with only the following:
A credit report showing just your mortgage history. (NO lates with in the last 12 months) if your credit score is above a 660 then you would want to have your mortgage history credit report to enclude that as well, for a better rate.
A copy of your original NOTE that you signed on the prior closing.
A copy of your drivers license and Social Security Card.
That's really about it. There is NO credit check, appraisal, proof of income and no proof of assets.
It is really easy to get this loan done. Check with your local lenders and brokers for a: VA IRRL.
There is a very simple answer to this question (you apply, just like any other loan) but I'll explain with a little more detail.
The purpose of the loan will make the path for your VA refinance clear. For both of my examples I'm going to assume you want to stay in your VA loan and not move to a conventional loan.
Option one: A streamline VA IRRRL (Interest Rate Reduction Refinance Loan). The purpose is to refinance for a lower interest rate or change in term (such as Adjustable to Fixed). You can not receive cash-out or roll debts into the loan (can receive up to $500 and roll in settlement costs). This loan will remove all of the qualifying requirements down to basically one thing, have you been on time for the past 12 months. Everything else doesn't matter. That means there is no appraisal, employment or income checks, no credit score requirements. You could have just lost your job, filed bankruptcy, be $100,000 upside down in your home and refinance. The thought process is that VA is already guaranteeing the loan to the lender so why not help you afford it with a lower payment. The VA funding fee is reduced to .50% for this program (waived for VA disability).
Option two: A cash-out refinance that allows for debts or cash to be included. Qualifying for this loan is just like any other loan, credit, income, debts, employment and home value matter. The great part is that you can go up to 100% of your homes value and receive cash-out. No other loan on the market today will come close to competing. The standard VA funding fee applies, 3.30% (waived for VA disability).
To start the process just contact your previous lender (if you were satisfied with their service). Interest rates and programs change frequently so these guidelines are only as good as the day this is posted.
Thank you for your service to our country.