VA Home Refinancing

VA home refinancing is an option that helps veterans to acquire financing so that they can avoid foreclosure and save money by getting a lower interest rate. Only a veteran or a veteran's spouse can be approved for a VA loan or for VA home refinancing. One of the ways that servicemen and women can apply for a refinance is to acquire a certificate of eligibility through the chosen lender. Veterans are offered many benefits to help them live independent lives. Homebuyers who currently have a VA loan can refinance with cash out options where they use equity in the house to remodel, pay off debts, pay for college tuition, or even take a vacation.

To get a VA loan a person must have served 90 days during a war or 181 days active service during a time of peace. Anyone who is an active serviceman or woman must have been in for at least 90 days to be eligible for VA home refinancing. Reservists are eligible after serving for six years. Spouses can be eligible for a loan if the veteran is deceased because of active service or if he or she is missing in action or a prisoner of war. The maximum loan amount that veterans or their spouses can qualify for is $417,000. A veteran who has paid off a house loan is eligible for another one but must show proof that the property is paid off and that he or she still owns the property or can show proof of sell.

A certificate of eligibility can be obtained through a lender and can speed the process up for VA home refinancing. A certificate of eligibility can serve as proof of active service to a lender without the veteran having to provide further proof. Lenders can obtain this certificate over the Internet very quickly. Another way to provide proof of service is if the person is currently in active service. The veteran can ask their commanding officer to draw up a statement of service letter stating the veteran's name, date of entry into the service and social security number.

A veteran has the option to cash out by doing a refinance on his or her house. Lenders will normally allow the buyer to cash out at 90% of the value of the house. Monthly mortgage insurance is usually not required on cash out refinance or for any type of VA home refinancing because the government guarantees the loan to the bank so the risk to the bank is eliminated. Cash out refinance is a good way for a buyer to use equity in the home to take care of other issues in life. Some of these may include financial debt, medical bills, illness, college tuition for a child, and repair or remodel the home.

One of the regulations with a VA loan or VA home refinancing is that the buyer, veteran, or veteran's spouse must occupy the home. Even though there are some regulations to obtaining financing there are also many benefits to doing so. No down payment is required and debt to income ratios often used to qualify are less strict compared to conventional loans. These benefits are ideal for first time homebuyers and they also make it possible for veterans to refinance an existing loan. "Some there said, 'We have mortgaged our lands, vineyards, and houses, that we might buy corn, because of the dearth' " (Nehemiah 10:31).

Veterans are now eligible for assistance to fix their residence to help them deal with any disability that they may have by acquiring Specially Adapted Housing grant money. This money can be used for veterans who are living with family members or friends temporarily so that the dwelling can be altered to help them to function with a disability. They can also use grant money towards adapting their own home. These grants can be applied and be approved up to three separate times. Some states have adopted programs to try and keep the veteran informed of any benefits that are applicable to him or her including the availability of grant money. Benefits are primarily set up to help disabled vets to live independent lives. Veterans are eligible for up to as much as $50,000 in grants to renovate their home for a disability. They are eligible for much more than that when opting for a VA home refinancing.

Benefits that make a VA loan attractive include no down payment, lower interest and attractive terms. A buyer is guaranteed energy efficient improvements in any house he or she buys. Veterans who purchase a house with the VA can let others assume the mortgage and pay off the house but they will not be eligible for more benefits until the home is actually paid off. VA home refinancing has benefits for veterans as well. A refinance has the same type of benefits as purchasing a house. Veterans who have completed 90 to 181 days of service are eligible at anytime. There are no limits on when vets can use these benefits. A buyer may want to choose to build a house instead of purchasing an existing property. Some of the requirements for new construction include a specific price for the house and who is paying the closing costs, the date the home will be completed, and a specific date when the seller transfers ownership to the buyer.



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