Veterans Affairs mortgages, or VA loans, have become lifesavers for homeowners struggling to refinance with conventional loans.
Low mortgage rates and tighter underwriting standards have led to a huge demand for VA loans from refinancers, says Michael Frueh, loan guaranty director for the Department of Veterans Affairs.
The biggest advantage of refinancing with a VA home loan is that homeowners can refinance up to 100 percent of the home's value, and they don't have to pay for mortgage insurance. A non-VA home loan normally requires some equity in the house.
"As values in the market continue to stabilize, veterans can take advantage of lowering their interest rates to today's unprecedented lows," says Deborah Ames Naylor, executive vice president of mortgages at PenFed, the Pentagon's credit union.
If you are a member of the military on active duty, a veteran, a reservist or a member of the National Guard, here are some refinancing options you may consider when it comes to a VA home loan.
Read more: http://valoanguidelines.org/funding-fees-pmi/