VA loans is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is intended for American veterans, members of the army who currently serve in the US Army, reservists and selected surviving spouses (provided that they do not marry again) and can be used to purchase single-family homes, condominiums, multi-apartment real estate, manufactured houses and new construction. Can you refinance with a VA loan?

Conventional to be paid

Payout refinancing is one of VA’s two refinancing options. The other, VA Streamline, is an interest rate reduction loan that is only available to people with VA secured mortgages. By comparison, cash-out refinancing is much more involved. In fact, in many respects, it reflects the process of getting a loan to buy a VA.

This means that potential borrowers will have to go through standard loan and guarantee procedures, including credit performance, debt-to-income ratio, home assessment, income verification and other key steps. Make no mistake: this is not a second mortgage or home loan. VA refinance replaces the current loan.

VA improves refinancing

Choose a VA refinancing loan if:

  • You already have a VA mortgage.
  • You want to refinance to a lower interest rate to save money or refinance a fixed-rate mortgage with a floating-rate loan.
  • I do not want to withdraw any cash from equity.

“Refinancing a loan to reduce interest rates” is projected to be inefficient, trouble-free refinancing that aims to reduce veterans’ interest rates, “says Chris Birk, Director of Education at Veterans United Home Loans in Columbia, Missouri.

Can you refinance with a VA loan?

To refinance on IRRRL, you must already have a VA mortgage. In addition, the rate must be lower for a new loan, unless you refinance a variable-rate VA loan.

Unlike most other refinancing, your home does not have to be your main residence. All that is required is pre-occupancy. For example, if you are stationed in a new place and want to keep your first home, you can refinance this mortgage without having to live in that home.

VA refinancing loan for payment

Choose a VA refinancing loan if:

  • You have a VA loan or a conventional loan.
  • You want to get cash from your home equity.
  • It can cover all closing costs in advance or cash you buy.

If you want to use your home equity, you can refinance your current mortgage – whether VA or conventional – for a VA refinancing loan.

Lenders always require a minimum credit rating and refinancing rating, and the home must be your primary residence.


If you currently have a VA loan or ordinary mortgage and want to refinance a VA loan with better rates and terms, use the VA loan calculator to find out how much your new mortgage payment can be. Also compare rates and conditions for many lenders because loan providers ultimately determine the rates and conditions for these loans, not the federal government.



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