23 Aug Refinancing with VA Home Loans
Refinancing a VA loan falls into one of two categories: those seeking better loan terms & those seeking cash-out. What’s the difference? Put simply, it comes down to whether your goal is to obtain better terms on your mortgage (a lower interest rate and/or lower monthly payment, for example) or if your goal is to refinance your loan and raise some funding (thus cashing out, so to speak).
A cash-out refinance is a form of mortgage refinancing that results in a higher total mortgage balance, but with the benefit of that higher rate resulting in a portion of cash being released to the veteran or service-member doing the refinancing. The additional funds can be used towards, really, any project you desire. Common purposes, though, include furnishing or remodeling your house, purchasing new appliances or repairing the property, or paying off existing debt.
A more traditional option, however, would be refinancing your existing mortgage with the goal of lower interest rates or payments. This is often referred to as an IRRRL (Interest Rate Reduction Refinance Loan). Generally, these types of refinancing options don’t require a new appraisal, and often closing costs can be included in the loan’s completion.
The takeaway here should be that refinancing with a VA loan can result in cash-out for multiple purposes or reduction in your monthly payments and mortgage interest rate. If you qualify, why not pursue it?
Rose
Posted at 18:36h, 28 OctoberWhat qualifies as a legal “manufactured home” when a purchase is made for veteran loan purpose?
Who is responsible to assure the home meets all the legal requirements for VA? (the real estate agent — the funding agent, — the VA itself? etc.)
Can a manufactured home damaged in transport or in set up, be repaired and be sold to a veteran under the VA loan requirements. What if HUD initially determines the damaged home to be salvage, but the home is repaired and livable?
How does a person know if a home has been damaged if no one tells them? Who is responsible to tell them of damage (in a bank foreclosure) and is there a VA loan requirements that prohibits such a purchase.
We know of a situation where the purchasers only found out the home was wrecked in transport, damaged, repaired, put on a permanent foundation (never disclosed the damage) and sold to a Veteran buyer.
The veteran buyer wants to refinance, and I told them I would reach out to VA lenders.
Can they refinance? If not, who was legally responsible to tell them of the damage initially and the HUD decertification?
David Johnson
Posted at 22:43h, 21 JanuaryBefore reading this, I didn’t realize that you can refinance an existing mortgage to get lower payments. One of my friends is struggling with payments this year. He’ll have to look into refinancing.
Sam Li
Posted at 19:48h, 27 FebruaryI love what you said about receiving additional funds and how they can be put towards any project you want. When it comes to financing a home, contacting a loan service is crucial in order to get the monetary assistance you require. If I were to come across someone that could benefit from a VA loan, I would make sure to contact the best financing company their respective area.