100% Financing Now Available For Both ReFi And New Purchase

Tony Dias
Branch Manager, Veterans United
NMLS #222836

It comes as a surprise to some, but one of the myriad benefits the VA Loan program offers qualified veterans is the option of refinancing from a non-VA home mortgage into a VA loan.

And Veterans United Home Loans is one of only a few VA lenders able to offer 100 percent financing on a refi from a conventional or FHA mortgage to a VA mortgage with no mortgage insurance required.

The VA Cash-Out Refinance and the VA Streamline — VA’s two refinance options.

The VA Streamline is an interest rate reduction loan that’s available only to those with VA-backed mortgages. The Cash-Out Refinance is more involved and in many ways it mirrors the process for obtaining a VA purchase loan.

That means prospective borrowers will have to go through standard credit and underwriting procedures, including a look at credit scores, debt-to-income ratio, a home appraisal, income verification and other key steps. Make no mistake…this is not a second mortgage or a home equity loan. A VA Refinance replaces your current mortgage.

On a VA Cash-Out, the bonus is that qualified veterans can refinance up to 100 percent of their home’s appraised value, depending on the lender. Some lenders opt to refinance only up to 90 percent. Veterans United is among the relatively few who can refinance up to 100 percent of the home’s value to cover mortgage debt only, or up to 90 percent if the borrower wants to extract cash. There are some restrictions and limitations, so it’s best to talk with a Veterans United refinance specialist.

The VA requires a mandatory charge known as the VA Funding Fee on every loan it guarantees. This fee doesn’t go to the lender; rather, it helps fund the VA home loan program and ensure that future generations of veterans can obtain home financing.

Veterans who want to refinance into a VA loan pay a higher Funding Fee than those who can pursue a Streamline. At present, the VA Funding Fee for a Cash-Out Refinance is 2.15 percent of the loan amount for regular military and 2.4 percent for National Guard and Reserve members. Borrowers with a service-connected disability are exempt from paying the Funding Fee.

Depending on interest rates and closing costs, veterans in some cases might consider a home equity loan, although rates tend to be higher on these.

There’s also a quirk when it comes to the VA Cash-Out Refinance loan: Borrowers don’t actually have to take out any cash. It’s just that this is the only option to jump into the VA loan program from a conventional or FHA loan.

On Memorial Day Veterans United Home Loans of Hawaii will pause in respect for the many men and women who paid the ultimate sacrifice for our freedom.

-Aloha, Tony Dias
Branch Manager, Veterans United
NMLS #222836

Upcoming Veterans United FREE Seminars

Veterans United seminars include† Powerpoint presentations & free workbooks. Question and answer periods follow the presentations. For more information & directions, call 676-8254.

Tuesday, May 29
6-8 pm
1585 Kapiolani Blvd. Suite 1518 Honolulu

Saturday, June 9
10am-noon
Veterans United Home Loans of Hawaii Educational Center
94-539 Puahi Street, Waipio, HI 96797

Thursday, June 14
6-8 pm
Bay View Golf Course
Kaneohe Room 45-285 Kaneohe Bay Drive, Kaneohe

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