Veteran's Affairs (VA) loans are government mortgages that provide financial benefits to active duty United States military and veterans. These loans are the top choice for members of the US armed services because they offer special benefits. Additionally, CapCenter will cover all traditional closing costs on your VA Refinance - a deal you shouldn't miss.

VA Refinance Options

CapCenter can support VA Standard Refinances, Cash-out Refinances, and Interest Rate Reduction Refinance Loans (IRRRLs).

CapCenter offers three main VA Refinance options. We have your back whether you're refinancing to save money or you'd like to tap into your home's equity.

VA Refinance (No Cash Out)

Refinance with a VA mortgage to reduce your interest rate and monthly payment.

Most seek a VA No Cash Out Refinance with the goal of reducing their interest rate and monthly mortgage payment. Another common goal is to shorten the loan term to pay off a mortgage faster.

VA Interest Rate Reduction Refinance Loan (VA Streamline Refinance)

Refinance a VA loan to save time and effort.

A VA IRRRL is a no cash out refinance, but it is only an option for people with an existing VA loan. This product has less-stringent documentation requirements than traditional VA refinances. IRRRLs may not require a credit check or appraisal since the VA has previously approved you for a loan.

VA Cash Out Refinance

Use an VA Cash Out Refinance to consolidate your debt or receive cash now.

VA Cash Out Refinances allow homeowners to convert their home's equity into cash. Here are some common motivators for a cash out:

  • You want to consolidate your debt under one loan
  • You want to pay off high-interest credit card debt and take advantage of a lower mortgage interest rate
  • You need cash to fund a home-improvement project
  • A divorce requires you to refinance and pay out a former spouse

VA Refinance Requirements

VA Refinance requirements include military service, loan seasoning, credit history, and payment of a funding fee.

Your mortgage lender and the VA will underwrite your credit application and determine your eligibility for VA benefits. Below we've outlined the primary requirements for VA Refinance mortgages.

Military Service

To get VA loan benefits, you need to have served (active duty) at least 90 days during conflict or 182 days during peace. National Guard service members must have served at least six years. Surviving spouses may also qualify for VA loans.

The VA will issue you a Certificate of Eligibility (COE) if you meet military service requirements. The COE does not guarantee loan approval - it certifies that you're eligible for consideration. You can apply for the Certificate of Eligibility on the Veteran's Affairs website. Alternatively, one of CapCenter's licensed loan officers can assist you.

Credit Requirements

CapCenter requires a minimum credit score of 620 across all loan programs. To qualify for a loan, your debt-to-income ratio should typically be 41% or lower. However, the VA does not have a specific limit for this ratio. DTI calculates how much of your gross income (before taxes) you use to pay off debts, including the mortgage you are applying for.

Loan Seasoning and Payment History

The VA requires you to wait 210 days from your first mortgage payment to refinance. You must have made at least six, on-time monthly mortgage payments to qualify for a VA Refinance.

VA Funding Fee

You must pay a VA Funding Fee for all VA-backed mortgages. This fee represents a percentage of your loan amount and varies from 0.5% to 3.3% based on your situation. Don't worry, you don't have to pay the funding fee in cash. Most of our borrowers elect to finance this fee and increase their loan amount.

Benefits of a Veteran Refinance

Why should you consider a VA backed home loan? VA loans offer tremendous benefits to US active duty service members. We've outlined many of the benefits below.

  • VA loans allow up to 100% financing - you can refinance the full value of your home. This includes Cash Out refinances.
  • VA loans do not have monthly mortgage insurance, unlike FHA and Conventional loans.
  • VA loans have easier qualification standards, including relaxed debt-to-income and home equity requirements.
  • VA loans are eligible for ZERO Closing Costs. VA refinances are covered by CapCenter's flagship Zero Closing Costs offer.

Veteran Refinance Closing Costs

CapCenter offers ZERO Closing Cost VA Refinance loans. We cover all traditional closing costs for all loans and also cover recordation taxes / fees on refinances. For a VA refinance in Virginia, we estimate average savings of around $4,000 when you use CapCenter. Check out our VA Refinance Calculator to understand how we calculate your savings.