You already own the home but are just seeking better financing. This may be the result of the market rates lowering, your personal financial situation improving, or the value of your home going up.

There are two main ways to refinance your VA loan.

Streamlined Refinance (IRRRL

Also known as the Interest Rate Reduction Refinance Loan, or IRRRL, the Streamlined Refinance loan is easy to complete and often requires no money from the homeowner. This type of refinance simply adjusts the terms of financing and is great when interest rates have lowered since you purchased your home. It does not typically require credit qualification, (varies by lender) does not require income verification and does not require an appraisal. Closing costs and documentation requirements are much lower then the original purchase.

Cash-Out Refinance

A Cash-Out Refinance is exactly what it sounds like—you refinance to pull cash out of your home once you have paid down the loan and have equity. This can be a great option if you want cash to pay off other debts, pay for a large purchase, or do home improvements.

Texas residents are not eligible for VA, FHA or USDA cashout refinance loans. There are other options available please inquire within. Texas also has a maximum (LTV) Loan to value of 80% for all conventional cashout loans.  

You can apply for a cash-out refinance for a VA loan, USDA loan, FHA loan, or conventional loan. The only limitations are placed by the lender on how much cash you can pull out and how much equity they require to remain in the property.

Keep in mind that refinancing may mean more interest costs over the life of the loan, so talk to your lender about your options before deciding on a refinance. If you are early into homeownership and interest rates have gone down, refinancing can be a great way to lower your monthly payments and even save money over the long-term