For borrowers who are military veterans, the change to VA loans that recently has taken place can be immensely beneficial. If you have a VA mortgage on your house, and if you’re interested in using VA financing to accomplish your goals as it pertains to refinancing. Please read on…
The departments of veteran affairs recently announced a change to VA loans. Prior to the covid-19 pandemic, VA loans were always 100% financing. The 100% financing could be used to pay off debt to do home improvement, lower your interest rate, or to accomplish your financial goals on a VA mortgage. The previous loan did not have to be VA. The previous loan could have been anything if you were eligible with your VA entitlement. Then the covid-19 pandemic hit and the VA loan had a change from 100% to 90%. This means, if your house was worth $500,000 before the pandemic, you could do up to a $500,000 for a new VA mortgage. Then when the pandemic transpired, that limit was changed to $450,000. That same example $50,000, 10% equity would have to be in position 90% financing after the refinance was complete. Well now it’s 2022, and the department of veteran affairs has reinstated the 100% loan to value cash out guideline for qualified VA military borrowers. This change reinstates the old guidelines that were previously in place prior to the pandemic that allows for up to 100% financing. This applies for owner occupied residential homes. This change coupled with today’s low interest rates could align nicely with families desiring to borrow money using their VA loan benefits.
If you’re a military veteran, have questions about VA loans, and whether you may or may not qualify for such financing; work with an experienced lender who can walk you through the intricacies of VA financing. Someone who knows how it can be woven into your short term and long-term financial family goals.
If you’re looking to refinance start today with a no-cost loan quote for refinance now!
