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How to Refinance a VA Loan

Refinancing your VA loan can help you take advantage of better rates and more veteran assistance options.

A VA home loan is a loan insured by the U.S. Department of Veterans Affairs. It’s an excellent product for eligible members of the U.S. Armed Forces (active duty, veterans, reservists, National Guard service members) and their eligible spouses because they can purchase a home with no down payment and limited closing costs.

But along with using a VA mortgage loan for a home purchase, there’s also the option of applying for a VA loan refinance to secure a new loan and save money.


What is a VA Refinance?

A VA refinance entails getting a new VA home loan to pay off and replace an original mortgage. This type of refinancing can result in a lower monthly payment and an interest rate reduction. If you currently have an FHA or conventional loan, you may be eligible to refinance into a VA home loan.

Types of VA Refinance Loans

If eligible, you can take advantage of two types of VA refinancing: cash-out and no cash-out.

A no cash-out refinance, also called a rate-term refinance, only modifies your interest rate and/or mortgage term. You can change the terms of your mortgage without changing the remaining loan balance. A cash-out refinance, on the other hand, allows you to refinance and borrow up to a percentage of your home equity. You can use the funds for home improvements, debt consolidation, and more.

If you don't want to receive cash back, you might be a candidate for a VA streamline refinance. It's an inexpensive option if you have a current VA loan. You can get a lower rate without a home appraisal or income verification.

Credit Score Requirements

The VA loan program doesn’t set a minimum credit score for a VA home loan. Minimum credit score requirements vary from lender to lender, with many lenders requiring a minimum score of at least 620. A credit check determines your eligibility and your mortgage rate. To improve your credit score, pay your bills on time and pay off credit card debt. Also, check your credit report regularly and dispute errors.

VA Refinance Eligibility

A VA loan refinance is only available for primary residences. For an approval, you’ll need stable employment, consistent and sufficient income, acceptable credit, and you’ll need to obtain a valid Certificate of Eligibility (COE). This is proof that you're a veteran and eligible for a VA loan. You can apply for a COE online here.

VA Cash-Out Refinance Loan Limits

The cash you receive from a refinance is based on the value of your home and limited to 80% to 90% of your home’s equity.

Start Your Refi


How to Apply for a VA Refinance

Whether you’re interested in a rate-term refinance or you’re looking to get cash from your home’s equity, we can help you reach your goals.

Once you’ve obtained a Certificate of Eligibility, contact one of our loan experts to discuss your refinance options and begin the process. Click here to find a loan officer in your area today!