VA loan refinance options
If you’re interested in VA loan refinancing, there are two main options you can choose between – a VA cash-out refinance loan and a VA Interest Rate Reduction Refinance Loan (IRRRL). We break down the differences between the two for you here.
Cash-out refinancing
If you’re looking to refinance and pull money out to help meet various financial goals, a cash-out VA loan refinance may be a fit for you. VA cash-out refinance loans offer a couple of key benefits, including:
- Refinance up to 90% of your home’s value
- An option to finance the VA funding fee
Interest Rate Reduction Refinance Loan (IRRRL)
An IRRRL is the VA loan version of a more traditional refinance – when you’re looking to take advantage of a lower interest rate or adjust terms with an existing VA home loan. It is sometimes also called a “streamline” refinance by the VA and offers benefits, including:
- Refinance up to 100% of your home’s value
- An option to finance the VA funding fee
- Available in a variety of terms (i.e. different lengths)
Request a call to learn more details about getting an IRRRL including requirements.
VA jumbo loan refinancing
Both cash-out and VA IRRRL loans may be available as jumbo loans as well. These have similar benefits to the regular VA cash-out refinance loan and IRRRL. With a VA jumbo cash-out refinance, you could also apply for up to a $500,000 cash-out limit . You can speak with your USAA Bank loan officer to learn more about VA jumbo loan refinancing options.
IRRRL: details & guidelines
There are some key things to know when considering an IRRRL, including specific requirements on eligibility, benefits, and what’s required when getting one.
Requirements when getting an IRRRL
According to the Department of Veterans Affairs (VA), to be eligible to get a VA IRRRL, all of the following must be true:
- You are using the IRRRL to refinance your existing VA-backed home loan
- You can certify that you currently live in or used to live in the home covered by the loan
- If you have a second mortgage on your home, then that loan holder must agree to make your new VA-backed loan the first mortgage
IRRRL loan limits
If you purchased your home with a VA loan and put no money down, there may be limits on refinancing with an IRRRL. Usually, you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most areas. There are some cases when you may be able to borrow more than these limits, such as if you live in a high-cost area. You can always speak with your USAA Bank loan officer to learn more about IRRRL limits and ask any questions about getting an IRRRL.
IRRRL closing costs
When getting an IRRRL, you will have some closing costs just like with any other mortgage or refinance loan. You may also need to pay the VA funding fee. This one-time fee helps lower VA loan costs since the VA home loan program doesn’t require down payments or monthly mortgage insurance. With an IRRRL, you can usually roll these costs into your refinanced loan so you don’t have to pay them out of pocket. Speak with your USAA Bank loan officer to learn what options are available based on your specific refinancing needs.
VA loan refinancing with USAA Bank
Just like when getting any VA home loan, it’s important to work with a knowledgeable VA loan lender. When selecting a lender for your VA loan, you’ll want to consider various factors such as the lender’s experience with VA loans, their reputation, the details of the loan they approve you for, and the resources and customer service they provide.
Why should you consider VA loan refinancing with USAA Bank?
Personalized support
We’re here to help you navigate the complexities of VA loan refinancing so you can determine the best options for your personal situation. Our knowledgeable lending team and loan officers work closely with you to understand your goals and provide personalized recommendations tailored to your needs.
Commitment to service
We value the military community and are dedicated to providing you with a commitment to integrity. We take pride in serving those who have served our nation and strive to provide exceptional customer service by answering your questions promptly and supporting your various financial needs.
Great rates
USAA Bank offers great interest rates for VA loans. By refinancing, you may be able to secure a lower rate and potentially save thousands of dollars over the life of your loan.
Options for getting cash out
If you need funds for home improvements, education expenses, or other financial needs, a VA loan may have options that include cash-out refinancing to tap into your home’s equity and access the funds you need while still enjoying the benefits of a VA loan.
Our process
The USAA Bank experienced mortgage team understands the intricacies of VA home loans. We’re dedicated to making the refinancing process as smooth and efficient as possible, guiding you every step of the way so that you receive the benefits you’ve earned.
Unlock the full potential of your VA home loan with our refinancing options. Whether you’re looking to lower your monthly payments, access cash for important life events and expenses, or consolidate debt, our VA loan officers are ready to assist you.
Contact us today to explore how VA home loan refinancing can help you achieve your financial goals. Let us honor your service by delivering the exceptional service you deserve.
How do you get started with a VA loan refinance
The steps to refinance with a VA loan are similar to the steps of buying a home with a VA loan. You can request a call and we will reach out to discuss your goal and options.
As with a VA purchase home loan, you will need to provide your Certificate of Eligibility (COE).
Understanding VA loan refinancing terms
When refinancing with a VA loan, there are some common things you need to know and consider, such as:
| Term | Details |
| Loan amount | What amount are you looking to refinance with your VA loan, including any cash-out funds you’re looking to get |
| Loan term | This is the length of time you’ll have to repay the loan |
| Interest rate | The percentage rate you’re eligible for when repaying the refinanced loan over time |
| Closing costs | Understand the fees associated with a VA loan refinance; may include fees such as appraisal fees and the VA loan funding fee |
The details of your VA loan refinancing will depend on a few factors, such as the current interest rate, your personal situation, and the amount you’re looking to refinance.
Things like interest rates and closing costs will also vary depending on the type of VA loan refinancing you’re doing.
VA loan refinancing: funding fee
A VA funding fee is a one-time fee associated with VA loans. While all VA loans, including refinanced VA loans, have a funding fee, you may have the option to finance this fee depending on the mortgage product and lender requirements. The fee is set by the VA and determined by the loan amount, your service history, and a few other factors. Depending on your personal circumstances and location, you may need to make a down payment on your VA loan.
Who is eligible for VA loan refinancing?
In order to get a VA refinance loan, you must meet VA loan eligibility requirements. Basically, if you’ve received a VA home loan before, you can usually get another one (though some restrictions or limits may apply). So, you’d also be eligible for refinancing with a VA loan.
The details of your eligibility depend on your length of service, when you served, and if you had an honorable discharge. A VA lender like USAA Bank can help you understand details related to eligibility and what terms and interest rates you may qualify for when refinancing your home.
Learn more about the VA loan refinance process
If you think a VA loan refinance might be right for you, or even if you have a few questions, you can reach out to the USAA Bank lending team. If you’re interested in learning about what options are available to you, request a call, and we’ll be in touch to discuss how to save with the benefits you’ve earned when refinancing a VA mortgage.
Tools and resources provided by USAA Federal Savings Bank should be considered general advice and for informational purposes only. All information is subject to change without notice and may not apply to all members. Products, services or features mentioned may not be offered by USAA Federal Savings Bank. The information contained is not intended to represent any endorsement, expressed or implied, by USAA Federal Savings Bank or any affiliates.
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