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/