VA Loan Refinance Programs
There are 2 main type of VA loan refinance programs: Interest Rate Reduction Refinance Loan (IRRRL) and Cash Out Refinance
Interest Rate Reduction Refinance Loan
If you have an existing VA-backed home loan and you want to reduce your monthly mortgage payments with minimal documentation, than an interest rate reduction refinance loan (IRRRL) may be right for you.
You may be eligible for an IRRRL if you meet all of the requirements listed below.
Note: If you have a second mortgage on the home, the holder must agree to make your new VA-backed loan the first mortgage.
Cash Out Refinance Loan
If you want to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan, a VA-backed cash-out refinance loan may be right for you.
You may be eligible for this type of loan if you meet all of the requirements listed below.
Get a VA Cash Out Refinance Loan quote.
How to Apply For A VA Refinance Loan
1. Apply for your VA-backed home loan Certificate of Eligibility (COE)
You’ll need to show your COE to your lender as proof that you qualify for the home loan benefit.
Learn more about COE eligibility.
2. Choose a lender
Remember, you’ll go through a private bank, mortgage company, or credit union to get your loan.
Be prepared to pay lender fees. Fees vary from lender to lender and from state to state.
Find an approved VA lender.
3. Give your lender any needed information.
In addition to the COE, your lender may also require recent paystubs, tax returns, a recent mortgage statement, proof of your homeowner's insurance, and a recent property tax bill.
Your lender may also order an updated appraisal to assess the house's value.
4. Follow your lender’s process for closing on the loan, and pay your closing costs.
You may need to pay a VA funding fee at closing. This one-time fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. Your lender will also charge interest on the loan in addition to closing fees.
Last updated September 23, 2020