Financing in 85641>Question Details

Sam, Home Buyer in 85641

I bought my home through a VA loan; If I'm to refinance my home which is priced lower than I originally paid for it, do I need to come out of

Asked by Sam, 85641 Thu Oct 22, 2009

pocket to refinance another VA loan?

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If you refinance with cash out then yes you would need an appraisal and ultimately you would have to come up with the difference. BUT if you do a VA streamline without any cash out only a rate reduction an appraisal is not needed there for you would be able to lower your rate and your payment. Try The Lenders Network, they will point you in the right direction.
9 votes Thank Flag Link Wed Aug 5, 2015
Sometimes you require additional cash now, for a real need. Perhaps you need to pay college tuition, or perhaps it's time to make improvements that will increase the value of your home prior to sale. Maybe you just want to take advantage of lower interest rates so you can keep more of your hard-earned money in your own pocket.
It may be the time to consider the many options available for refinancing your VA Home Loan.

Whether you need money to consolidate high interest credit card debt, pay for college tuition, buy a new car, or make home improvements to your home, VALoans.com can find a way to get you the cash you need through a refinance.

A VA refinance transaction involves repayment of your current real estate debt from the proceeds of your new VA mortgage that has the same borrower(s) using the same property. This is called a "Cash Out" Refinance.

http://valoanguidelines.org/refinance-loan-programs/

Cash-Out Refinances are used for homes that are used as a principal residence by its owner. That owner can refinance for up to 90% of the appraised value (Not available in Texas) plus all closing costs if the property can withstand the designated loan to value ratio. There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for the loan.
2 votes Thank Flag Link Sun May 17, 2015
Sam,

If you refinance with cash out then yes you would need an appraisal and ultimately you would have to come up with the difference. BUT if you do a VA streamline without any cash out only a rate reduction an appraisal is not needed there for you would be able to lower your rate and your payment. If you are not working with someone or are not satisfied with the service give me a call and we can walk through this together.

Tony
602-684-0866
2 votes Thank Flag Link Thu Oct 22, 2009
You do not need an appraisal or income for a streamline on a VA loan. You will need to recoup your closing costs within 36 months to qualify but that can easily be achieved with a lender credit.

Thank you,
Melvin List
Licensed Mortgage Loan Originator, NMLS# 243087
American Mortgage Services CO NMLS# 259805
Cell: 813.629.5478
http://www.flbestrate.com
1 vote Thank Flag Link Fri Apr 24, 2015
You do not need to pay the principal down on a VA loan if it is now worth less than what you originally paid for it. The only type of loan option that would allow you to not come out of pocket to pay principal down is called a "VA streamline refinance". It does not require an appraisal, therefore you would not have to pay the principal down because the current market value was never established. You also do not have to provide any income documentation. It is a very easy loan. We lend in all 50 states, feel free to click on my name and contact me directly for more details.
1 vote Thank Flag Link Sun Mar 15, 2015
Hi Sam, I hope values have improved enough by now that you may be able to refinance without coming in with money. I know the lower rates are enticing! When you call your lender, they can arrange for an appraisal so they know how much you are eligible to refinance for. There have been some changes in what the lenders can do for you since 2009, so if you got shot down once, it may be worth another try. Rates are once again very low!
1 vote Thank Flag Link Sun Mar 15, 2015
The VA will have your home appraised when you refinance the home. If the Appraised Value is less than your current loan balance, you will have to make up the difference.

For example, if you owe $150,000 and your home appraises for $140,000, then you would have to pay the $10,000 difference at closing.

You will also incur some closing costs but it's difficult to predict what they will be as Lender Fees vary greatly. Some Lenders will also pay a portion of your closing costs as part of the loan.

I recommend contacting your current lender and one or two other lenders to obtain an estimate of your closing costs and what programs they currently offer.
1 vote Thank Flag Link Tue Feb 3, 2015
Hi Sam,

Keep in mind that you will have to come to the table with closing costs.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
(480) 422-5095 Direct
Web Reference: http://www.ezAZloan.com
1 vote Thank Flag Link Thu Oct 22, 2009
You need to call your lender and ask about a VA Interest Rate Reduction Loan (IRRL). You should be able to qualify easilly and it should be exempt from an appraisal requirement.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
1 vote Thank Flag Link Thu Oct 22, 2009
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