What is a VA Refinance Loan?
For veterans, active-duty service members, and eligible surviving spouses, VA refinance loans provide an opportunity to lower monthly payments, access home equity, or switch to better loan terms. Whether you want to refinance an existing VA loan for a lower interest rate or take cash out from your home’s equity, VA refinancing options offer unmatched benefits, including no private mortgage insurance (PMI) and competitive interest rates.
A VA refinance loan allows eligible borrowers to replace their existing mortgage with a new VA-backed loan that offers lower interest rates, better terms, or access to home equity. Unlike conventional refinancing, VA loans require no PMI and offer more lenient credit and income requirements, making refinancing more affordable for veterans and service members.
If you're looking to lower your rate, reduce your payments, or convert home equity into cash, a VA refinance loan could be the perfect solution.
Types of VA Refinance Loans
VA Interest Rate Reduction Refinance Loan (IRRRL) – VA Streamline Refinance
A VA IRRRL, also known as a VA Streamline Refinance, is designed for homeowners who already have a VA loan and want to refinance to a lower interest rate with minimal paperwork and faster processing.
✅ Best for:
✔ Homeowners with an existing VA loan who want a lower interest rate.
✔ Borrowers looking to switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan.
✔ VA homeowners who want a quick, hassle-free refinance with no appraisal required.
✅ Key Benefits:
✔ No appraisal or income verification require.
✔Lower interest rates and monthly payments.
✔Minimal paperwork and faster closing.
✔No out-of-pocket costs – fees can be rolled into the loan.
💡
Example: A veteran currently paying 6.5% interest on their VA loan refinances to a new 4.5% fixed-rate loan, reducing their
monthly payment significantly.
VA Cash-Out Refinance – Access Home Equity for Cash Needs
A VA Cash-Out Refinance allows eligible homeowners to refinance their mortgage and take cash out by using their home’s equity. This is an excellent option for those looking to consolidate debt, pay for home renovations, or cover large expenses.
✅ Best for:
✔ Homeowners with significant home equity who need cash.
✔ Borrowers looking to pay off high-interest debt or fund home improvements.
✔ VA homeowners wanting to refinance a non-VA loan into a VA loan
.
✅ Key Benefits:
✔ Access up to 90% of your home’s equity in cash.
✔ Use funds for home repairs, debt consolidation, or other financial needs.
✔ Lower interest rates compared to personal loans or credit cards.
✔ Available for both VA and non-VA loan holders.
💡
Example: A veteran owns a home worth $400,000 and has $250,000 left on their mortgage. They take out a VA Cash-Out Refinance loan for $300,000, paying off the existing balance and receiving $50,000 in cash for home renovation.
Qualifications for a VA Refinance Loan
✅Credit Score:
No official VA minimum, but most lenders require 620+.Higher scores (680+) may qualify for better interest rates.
✅Debt-to-Income (DTI) Ratio:
Most lenders prefer a DTI of 41% or lower, but higher ratios can be approved.
✅VA Loan Limits:
VA loans don’t have a loan limit, but some lenders may impose a maximum loan amount.
✅VA Funding Fee:
A one-time VA funding fee (0.5% - 3.3%) applies but can be waived for disabled veterans and surviving spouses.
✅Property Type Eligibility:
Must be a primary residence (not available for investment properties or vacation homes).
Is a VA Refinance Loan Right for You?
At The Acre Lending Team, we specialize in helping veterans and military families refinance their homes for better rates, lower payments, or cash-out options. Whether you're looking to streamline your loan or access home equity, we’re here to guide you every step of the way.
Ready to get started?
Fill out our short form to get started!
Have a questions?
Speak to our mortgage experts today!
Acre Mortgage is an Equal Housing Lender. We fully comply with the Equal Credit Opportunity Act (ECOA) and all other Federal regulations. All applicants applying for credit from Acre Mortgage will never be discouraged on on the basis of race, color, religion, national origin, sex, military status ,marital status, age, or because you get public assistance. All information we request is voluntary, and will be kept confidential. For more information on the ECOA, please visit:
Copyright 2025. | Acre Mortgage | All Right are Reserved.