VA mortgage loans can be refinanced much like a traditional conventional loan allowing the home owner to take advantage of lower interest rates that can ultimately save a substantial amount of money by lowering your monthly payment.
If you are a Veteran but currently have a conventional loan, you can refinance into a VA loan. Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan” and is a very straightforward process.
A common question related to VA refinancing is whether or not you can get a refinance on a VA loan if you are currently upside down on your mortgage. The answer is…you can!
Just to be clear, being “upside down” on a mortgage is when you owe more on your mortgage than the current value of your home. This is a highly unfortunate situation that many American home owners are facing today.
In 2008 a law titled the “Veteran Benefits Improvement Act” was passed to assist veterans who were upside down on their mortgage. This law created the opportunity for eligible veterans to get a VA refinance and improve their financial circumstances.
Of course, you are also allowed to refinance your home if you currently have a VA mortgage. An Interest Rate Reduction Refinancing Loan (IRRRL) is considered a VA Streamline Refinance. This is a quick and easy way to either lower your monthly mortgage payment or take money out of your home with minimal work, at no cost to you!
Some of the additional benefits of a VA Streamline Refinance or IRRRL include:
- In some cases, you may not need to have an appraisal of your home.
- Limited income verification.
- An extremely low VA Funding Fee – only 0.5%