Disabled veterans are entitled to avail VA loan benefits. The Department of Veteran Affairs urges all the disabled veterans to make use of their Home Loan Program Benefits to refinance their home loan to save up.
Through the years, more veteran homeowners are availing VA’s mortgage refinancing options to save cash through lower interest rates. They also resort to refinancing to use their home equity to pay for other loans like a student loan or credit card and even use the cash for home improvements.
Even if you have already used your VA benefit to buy a home, you can still reuse it to refinance a primary mortgage to lower the interest rate you pay every month and reduce your monthly bills entirely.
Disabled veteran homeowners can choose from Interest Rate Reduction Refinance Loan, Cash-Out Refinance Home Loan or Streamline Refinance Loan. These loan options don’t require appraisal or credit underwriting.
- Interest Rate Reduction Refinance Loans can lower your monthly mortgage payment by getting a lower-interest loan or secure your monthly payments by replacing an old mortgage with a new one.
- Cash-Out Refinance Home Loan allows you to use your home’s equity to take cash-out through refinancing.
- Streamline Refinance Loan is an option for vets who want to get low-interest rates or to change an adjustable rate mortgage (ARM).
If you’re a disabled vet and have separated or relieved from the military service and have received disability compensation of at least 10%, you’re exempted from a funding fee. In this case, you can reduce your mortgage payments by $200 or even more. The previous year, a data showed that refinancing programs for disabled veterans allowed veterans to save more than $900 million in their first two years alone.
To avail the benefits of the loan program, veterans should obtain a Certificate of Eligibility online through VA’s eBenefits Web site at www.ebenefits.va.gov/ebenefits-portal/ebenefits.portal or through their lender.