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Options for Refinancing with a VA Home Loan | Department of Veterans Affairs | theSITREP - YouTube
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how's it going everybody welcome to
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another episode of the sit rep and today
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we are continuing our conversation with
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rick bettencourt thanks for being here
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buddy i love it man i'm excited thank
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you for having me again but today yes
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today we are talking about va home loans
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specifically refinancing awesome
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opportunities which is the one aspect
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about va home loans that i absolutely
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know the least about so this is gonna be
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cool good for me yeah
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um so refinancing
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um what types of refinanced loans are
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available through va home loan benefit
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there's three types you have your
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va cash out type one va cash out type
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two and then you have a va interest rate
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reduction refinance loan called the earl
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or a streamline they call it all right
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so that's the three types of
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refinancing that's available to veterans
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and what's the difference between them
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so
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99. like eight percent of all va refis
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out there are the va cash out type two
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that is
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you're
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borrowing money on your current primary
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residence to either a reduce your rate
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and or
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take out some equity for whatever it is
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you might want to do debt consolidation
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maybe internal renovation you want to
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pay for something or buy whatever it is
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right it's just cash out
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and your loan amount your new loan
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balance is going to be greater than what
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you currently owe on the property all
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right that's a type 2
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va cash out refinance so if your current
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loan balance is
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300 000 and your new loan balance is
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going to be 380 that is a va cash out
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type 2
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refinance
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type 1 cash out refinance is very very
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very rare i don't know why they wrote it
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in the regulation
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but it's
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a va
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refinance excuse me a va refinance where
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the new loan amount think about this is
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very rare the new loan amount is going
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to be lower than your existing loan
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amount
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weird right huh i know
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the only example that i can give you
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which would categorically
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create a
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va cash out
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or va type 1 cash out is
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said veteran who owns said property
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receives an inheritance from deceased
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family of 200 000
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and refinance their property
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to drop it from a 300 000 loan balance
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to a 100 000 loan balance that would
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then be an example of a va
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cash out type one refinance so how's
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that cash out though because you're not
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taking out any cash so va only
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categorizes their refinancing as cash
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out there is no what we call rate and
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term specifically it's they just they
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have a cash out refinance even though
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you're not taking cash out that's just
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how va categorizes their refinance
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program okay and then earl
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earl is um where we see often you know
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to digress but that's where we saw some
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of the greatest predatory lending was in
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the va streamline refinance
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over the last 10 years
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that is when a veteran
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who currently has a va home loan
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and is going to reduce their rate a
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specific amount which is 0.5 percent
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not take any cash out but just wants to
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reduce their interest rate
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they're allowed to do a streamline and
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that is generally
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no
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no w2s no pay stubs no appraisal no bank
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statements no nothing um oftentimes
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you may not you may not even need a full
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credit report
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just a mortgage history so it depends on
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the lender but that is uh streamlines
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or interest rate reduction refinance
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loan
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the free va new england mobile app is
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empowering those who served our country
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like never before access up-to-date
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information on benefits healthcare home
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loans and more search va new england in
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your app store today and access the
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benefits you've earned and deserve
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