VA Guide

Using a VA Loan to Refinance

Why It’s Better than Other Options

Most people refinance to get cash out, lower their payment, lower their interest rate or all three. Qualified veterans, service members and spouses can meet these goals with a VA loan, and you’ll get the following benefits:

  • In most cases, better interest rates
  • Lower closing costs
  • No mortgage insurance added to your payments

Refinance Calculator

Calculate your monthly payment and review your loan options.

Calculate Now

Refinance to Get Cash Back

Maybe you want to pay off some credit cards, or do some home improvements. Refinancing to get cash back with a VA loan has these advantages:

  • Any kind of mortgage can be refinanced to a VA loan.
  • You need less equity in your home compared to other loans.
  • You can refinance more of your home’s value, which means more cash back.
  • You can get cash without opening a home equity line of credit or adding a second mortgage through a home equity loan.

How It Works

During a cash-out refinance, you pay off your first mortgage, get a new one for a larger amount and gain the difference as cash. How much cash back you can get varies by lender. You can use the money for anything you want.

You also may be able to lower your interest rate and monthly payment, and change the length of your mortgage at the same time.

Because you’re getting a new mortgage, the process is similar to getting a VA loan to buy a house. Here’s an overview of what you’ll do:

  • Find a VA-approved lender, if you don’t already have one.
  • Provide information and documents about your finances for your lender to review.
  • Get a Certificate of Eligibility from the VA; ask your lender if they’ll do this for you.
  • Have a VA-approved appraiser assess and inspect your home.
  • Pay the VA funding fee, unless a disability makes you exempt.
  • Close on your loan.

Lower Your Interest Rate on a VA Loan You Already Have

If your current mortgage was financed by a VA loan, you have another refinance option: the Interest Rate Reduction Refinance Loan, or IRRRL. It’s used to refinance your current VA loan to one with a lower interest rate. You can’t get cash back with an IRRRL, but it comes with these advantages:

  • Lower monthly payment
  • Quick and easy process
  • No new Certificate of Eligibility required
  • No money out of your pocket if you roll refinancing costs into the loan
  • A lower VA funding fee than a cash-out refinance

Another VA Loan Refinance Option from Quicken Loans

Don’t qualify for an Interest Rate Reduction Refinance Loan because your current mortgage isn’t a VA loan? Quicken Loans, a VA-approved lender, has a VA loan option for you. Chat with a home loan expert or apply online with Rocket Mortgage®.

Apply to Refinance

Was This Helpful?