Types of VA Loans

Common types of VA Home Financing

VA Purchase.  Buy an existing home recently built or previously occupied.
VA Refinance.  Refinance your existing mortgage to take advantage of the benefits the program has available.

•  VA Refinancing can be broken down into two categories. One is a traditional refinance called a VA cash out. Although one may not be seeking to take cash out of the home, the VA still labels this as such.

If you plan to do the following, it is considered a VA cash out refinance

– If you currently have a FHA, conventional, or other type of home loan and want to refinance into a VA loan for any purpose.

Even if you are simply trying to reduce your interest rate with no additional cash, it is considered a cash out if going from a Non VA loan to a VA loan.

– If you currently have a VA loan and wish to pull cash out of the home, pay off any debt, consolidate a 1st and 2nd mortgage.

 VA Streamline Refinance, Interest Rate Reduction Loan (IRRL)

The other type of VA refinance is often called a streamline refinance or IRRL, pronounced (Earl).

This type of refinance is only available to those who currently have a VA loan

Streamline refinances are quite possibly the easiest and cheapest (depending on the lender you choose) type of loan on the market today. They are designed to allow you to refinance your existing balance to a lower rate, to a longer or shorter term, or convert your adjustable VA loan to a fixed VA loan.

The reason this is called a streamline loan is generally it is a much easier, quicker refinance to do and can be completed in as little as 10 days.

Tax returns and income documentation generally are not required. Full appraisals many times are not required either, however depending on several variables such as current lender and location, an appraisal may be required. See VA Appraisals for further information.

To Learn more about VA streamline loans click here.