Veterans in Jacksonville & St. Augustine have some great VA refinance options available in 2020. Depending on your current needs and equity situation, The VA 100% Cash Out or IRRRL Streamline refinance could make sense. Mortgage interest rates recently reached new all-time low levels and now might be the perfect time for the homeowners still considering a refinance.
VA Cash-out Refinance:
For Duval or St.Johns residents that have equity, a VA cash-out refi may be the perfect way to consolidate other high-interest debt. 100% VA cash-out refinance allows an approved veteran to pay off high-interest debt like credit cards, college loans, etc. Funds can also be use for home improvements that can help increase your home value.
MORE: Read about recent Changes Announced by VA.
A number of VA lenders process these loans quickly and efficiently according to the refinancing guidelines set by the Veterans Administration. The VA cash out refinance program will require a new appraisal to verify the home’s current value.
Keep in mind that VA cash-out guidelines require that the veteran still occupy the property as their primary residence. When equity is present, the owner can take out up to 100% of the property value. This loan can also include closing costs and other fees. As long as the LTV requirement is met, the seasoning of the loan may not be needed.
VA Streamline Refinance Mortgage / IRRRL
The VA “Streamline” refinance, also known as the Interest Rate Reduction Refinance Loan or “IRRRL” for short. The Streamline Refinance guidelines are very simple and straight-forward with little paperwork – hence the name “streamline” No cash can be taken out by the homeowner with this type of VA refinance.
Closing costs and energy efficiency improvement costs can be included in the new loan in most cases. IRRRL guidelines do not require the lender to perform a new appraisal or credit, income underwriting as long as the original loan that is being refinanced was also a VA guaranteed loan.
This is great because Veterans can be upside down on their home loan and still refinance. Borrowers that just want to simply reduce their interest rate or change their loan term can qualify. Contact us below to discuss current VA interest rates.
IRRRL streamline loans are not assumable. No cash back is allowed even if you do have equity, just standard closing costs can be included in the new refinance loan. Second loans or home equity loans (HELOC) existing on the property must be subordinated to the new VA first mortgage.
VA basically provides the backing for the lender providing financing to the veteran and issues its lending guidelines and requirements. A veteran seeking a VA guaranteed home loan must qualify based on the financing lenders underwriting requirements related to income, credit and assets. A lender can choose to enforce their own in house criteria while evaluating a prospective borrower’s financial profile.
VA loan eligibility depends primarily on the debt-to-income ratio. The residual income left for the household after paying for all the housing-related expenses, monthly debt payments and taxes is used by approved VA lenders to determine the eligibility of prospective seekers of a VA insured mortgage loan. The residual evaluation followed in VA underwriting is much preferred to the plain vanilla debt-to-income ratio used in conventional residential lending guidelines.
The $0 out of pocket option is the primary driver of its popularity among veteran homeowners looking for “rate and term” refinance. It’s important that borrowers understand the specific refinance option’s guidelines and requirements to choose the appropriate option that fits their financing needs.
MORE: The VA web site offer some additional information in refinance programs.
Please contact Coast2Coast 7 days a week with questions by calling the number above. We are happy to assist homeowners across Florida: St. Augustine, St. Johns, Duval, Jacksonville, Crescent Beach, Ponte Vedra.