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Hi Emma,
Great question! For VA loans, you have two main refinancing options: the VA IRRRL (Streamline Refinance) and the VA Cash-Out Refinance.
- VA IRRRL (Interest Rate Reduction Refinance Loan):
- This option helps reduce your interest rate and monthly payments. To qualify, you need to wait 210 days (about 7 months) from your first mortgage payment or have made at least six consecutive payments on your current loan—whichever comes later. The good thing is, this usually doesn’t require a full appraisal or credit check, making it a pretty smooth process. If you’re simply looking to lower your rate or switch from an adjustable to a fixed rate, this could be a good fit.
- VA Cash-Out Refinance:
- With this option, you can access your home’s equity to use for renovations, debt consolidation, or other expenses. It does require an appraisal and a credit check, and you’ll need to have made at least six consecutive payments to qualify. Since you mentioned a change in your financial situation, this might affect how much you can cash out, so it’s worth considering your options here.
If you’re unsure about the next steps or whether refinancing makes sense for you right now, I’d recommend speaking with a mortgage professional. They can give you specific advice based on your current financial situation. I’d also be happy to chat with you and help answer any other questions you have.
This article also has more info on refinancing VA loans that you may find helpful.
https://chadbushre.com/va-loan-refinancing-options-maximize-your-benefits/
chadbushre.com
VA Loan Refinancing Options: Maximize Your Benefits - Chad Bush, Realtor & Loan Officer
VA loan refinancing offers veterans options to lower mortgage payments or access home equity. The VA Streamline Refinance (IRRRL) reduces interest rates with minimal paperwork, while the VA Cash-Out Refinance provides cash for expenses or converts non-VA loans. Eligibility includes … Continue reading
- VA IRRRL (Interest Rate Reduction Refinance Loan):
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Chad Bush
MemberAugust 28, 2024 at 10:45 pm in reply to: Need Help Understanding VA Loan Requirements and How to Obtain a COEThat’s a great question, and I’m glad you’re looking into a VA loan—it’s a really smart benefit to take advantage of for those that are eligible. The process can seem a bit confusing at first, but I can definitely help break it down for you.
Eligibility Requirements:
To qualify for a VA loan, you generally need to meet one of the following criteria:
- Service Requirements:
- Active Duty: Veterans must have served at least 24 continuous months of active duty, or at least 90 days during wartime, or 181 days during peacetime if they were called or ordered to active duty.
- National Guard/Reserves: You should have at least 6 years of service, unless you were called to active duty, in which case the same 90-day wartime or 181-day peacetime active duty requirements apply.
- Spouse of a Veteran: Some surviving spouses are eligible, particularly if the service member died in service or due to a service-related disability.
- Discharge Status:
- Your discharge should be under conditions other than dishonorable.
Obtaining the Certificate of Eligibility (COE):
The COE is a key document you’ll need to show your lender that you qualify for a VA loan. Here’s how you can get it and what documents you’ll need:
- Online Application:
- The fastest way is to apply online through the VA’s eBenefits portal. Many people, including myself, have been able to get their COE almost instantly after applying online. However, sometimes it can take a little longer, depending on your specific situation.
- Through Your Lender:
- Lenders can often use an online system called Web LGY to quickly access your eligibility information and help you obtain your COE. The process is usually fast, depending on your eligibility and the accuracy of your records. Loan officers like myself work closely with lenders to ensure everything goes smoothly.
- By Mail:
- If you prefer, you can apply by mail by completing the VA Form 26-1880. You’ll send this form to the appropriate VA office. This method takes longer, usually around 4 to 6 weeks.
Documents You’ll Need to Submit for the COE:
- Veterans: A copy of your discharge or separation papers (DD Form 214) showing the nature of your service and the type of discharge you received.
- Active Duty Service Members: A statement of service signed by your personnel officer, adjutant, or commander of your unit or higher headquarters.
- Current or Former National Guard or Reserve Members: A copy of your retirement points statement and proof of your honorable service. If you were discharged, you may also need your DD Form 214.
- Surviving Spouses:
- If you’re receiving Dependency & Indemnity Compensation (DIC), you’ll need the Veteran’s discharge documents (DD214) and a completed Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817).
- If you’re not receiving DIC benefits, you’ll need:
- A completed Application for DIC, Death Pension, and/or Accrued Benefits (VA Form 21P-534EZ),
- A copy of your marriage license,
- The Veteran’s death certificate.
Next Steps:
Once you have your COE, you can start the process of applying for the VA loan with your loan officer. They’ll guide you through the rest of the application process, including gathering necessary financial documents and working on your loan approval.
If you ever need help with the process or have more questions, feel free to reach out. I’m happy to assist you with your VA loan journey.
You can also check out the following article for even more info on VA loans:
https://chadbushre.com/everything-you-need-to-know-about-va-loans/
chadbushre.com
VA loans, backed by the U.S. Department of Veterans Affairs, allow veterans and service members to buy homes with no down payment and competitive interest rates. This guide details eligibility, types of VA loans, the application process, and financial considerations, … Continue reading
- Service Requirements:
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Chad Bush
MemberSeptember 18, 2024 at 5:13 pm in reply to: Concerned About California Wildfires? What Homebuyers Can DoExcellent point, Gus. It’s definitely an issue for some homeowners in fire zones here in California. Companies like State Farm and Allstate have started pulling back, which means people in areas like San Bernardino are getting dropped or just can’t get coverage at all from many of these insurance companies. The only option for a lot of folks now is the California FAIR Plan which is kind of a last resort and usually way more expensive. From what I’ve seen, the California FAIR Plan is significantly more expensive. It’s averaging around $3,200 a year, compared to about $2,200 that most homebuyers were previously paying in these fire zones. That extra $1,000 can really add up, especially considering that it’s often the only option for people who live in areas with high wildfire risk. Plus, with the FAIR Plan, you often need to add more liability coverage on top of that, so it’s not just a simple fix.
The state’s trying to make it easier for insurance companies to offer coverage in wildfire areas by letting them use better tech to predict risks, which they hope will get more companies to step up. But it’s going to take some time for that to kick in, and there’s still some worry about whether this will actually help people or just give insurers a way to bump up prices. It’s not all doom and gloom, but with wildfires becoming more common, the system definitely needs reform so homeowners aren’t stuck paying much higher premiums in the many fire zones across the state.
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Chad Bush
MemberSeptember 18, 2024 at 4:47 pm in reply to: Concerned About California Wildfires? What Homebuyers Can DoYeah, the Airport Fire is the one in Orange County (Trabuco Canyon). That one was accidental, caused by county workers using heavy equipment. And I think it’s 31% contained as of yesterday.
The Line Fire looks to be arson, though. It’s ridiculous that someone would intentionally set a fire, especially knowing the kind of damage these things can cause. Hopefully, he’s held fully accountable for the harm he caused.
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Chad Bush
MemberSeptember 5, 2024 at 8:28 pm in reply to: Down Payment Assistance Programs for Buyer Agent CommissionsI will keep that mind. We could definitely get more for our money outside of Orange County, CA, that’s for sure.
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Chad Bush
MemberSeptember 5, 2024 at 8:26 pm in reply to: Down Payment Assistance Programs for Buyer Agent CommissionsThanks for the info, Gus. I will check with him on this.
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Chad Bush
MemberSeptember 5, 2024 at 7:57 pm in reply to: Down Payment Assistance Programs for Buyer Agent CommissionsThanks for your input. That’s mostly what I assumed the case was with DPA programs. Thanks for verifying.
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Chad Bush
MemberAugust 29, 2024 at 5:35 pm in reply to: Need Help Understanding VA Loan Requirements and How to Obtain a COEGreat question. So, the two years (24 continuous months) of service is specific to those who served on active duty, but that alone doesn’t automatically qualify you for a COE to get a VA loan. For active duty members, the 24-month rule is one of the key requirements, but it also depends on when and under what conditions you served.
If you were in the National Guard or Reserves, the requirements are a bit different. Generally, you’d need 6 creditable years of service like I mentioned before, or you might qualify if you were called to active duty under Title 10 orders for at least 90 days.
So, while the two years of full-time service is important for active duty, it’s not the only factor. If you’re unsure about whether you qualify, it might be helpful to chat with a loan officer who can help you figure it out.
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Chad Bush
MemberAugust 29, 2024 at 5:02 pm in reply to: Need Help Understanding VA Loan Requirements and How to Obtain a COESo for Tim to qualify for a Certificate of Eligibility (COE) with his time in the Reserves, he needs to have completed 6 creditable years in the Selected Reserve or National Guard. To make those years count as “creditable,” he should have earned at least 16 points each year. These points can come from things like weekend drills, training, and membership.
He can check if he has 16 points each year by looking at his Retirement Points Statement. This statement shows all the points he’s earned for different activities each year. If he doesn’t have it handy, he can request it from his unit or check it through military personnel systems like the Army’s My Record Portal or a similar portal for other branches.
Now, on top of that, there’s an additional requirement: at least one of these must be true:
- He’s still serving in the Selected Reserve, or
- He was discharged honorably, or
- He’s retired, or
- He was transferred to the Standby Reserve or Ready Reserve with honorable service.
If he’s got those 6 years with the 16 points each and meets one of the above conditions, he should be good to go for the COE, even without combat experience. Hope that helps!
- This reply was modified 2 weeks, 6 days ago by Chad Bush.