If you’re a veteran who has recently left active military service due to retirement or injury, and you’re looking to improve the quality of your home, then you have options. You are able to cash out on 100% of your home’s equity.
Difference Between VA Refinance And Conventional
A conventional refinance loan is open to anyone who has a decent enough credit score to apply. The score will usually be anywhere from 500 and up, depending on the credit raters and loan providers you work with. The loan comes with standard interest rates, that aim to protect banks and providers with a reassurance.
A VA Refinance loan has the same properties, except it has lower interest rates. It has a number of benefits in comparison to conventional loans, such as there being no down payment required.
The Variety Of VA Refinance Loans
There are two main VA refinance loans that you can sign up to. There is the VA Streamline Refinance, otherwise known as the IRRRL. This is available to veterans who already have an existing VA loan, who are looking at reducing their current interest rates. It’s a streamlined process, which means you won’t have to do much paperwork, with little costs.
The VA cash-out refinance loan is the other main type of VA refinance loan available to veterans. It is used for veterans in order to take out a piece of their home’s equity, in order to access cash from the mortgage to make improvements to their home, pay off debts or any other financial requirements they might have.
Veterans will be able to use this loan to borrow up to 100% of the value of their home. You may not be aware of which loans work for you, in times like that, you should speak to a veteran loan specialist. Hero Loan are one such organization, who only deal with VA loans, are have a passionate team who can explain how you would refinance a VA loan, and how much interest you’re eligible for.
How To Know If You’re Eligible
Not everyone who has served will be eligible for a VA loan. In order to qualify, you will need to have served over 90 consecutive days during wartime, in active service. Alternatively, you must have served over 181 days during active peacetime. If you’ve served over six years within the national guard, or the reserves, then you will also qualify under these rules.
If you’re the widow of a veteran, or the spouse of a disabled veteran injured in the line of duty, then you will be able to apply too. This counts for veterans who were injured during active service, who passed away later at home.