Conventional to VA Refinance
The Veterans Administration's Conventional to VA Refinance loan offers eligible veteran homeowners an opportunity to refinance their existing Non-VA mortgage into a VA mortgage with a potentially lower rate and monthly payment, utilizing the benefit they've earned with their service to our country.
If your current mortgage is a conventional, FHA, USDA, owner financed or other program, you may be able to refinance into a lower rate and payment and at the same time avoid costly private mortgage insurance (PMI) or FHA mortgage insurance premium (MIP).
The Conventional to VA Refinance, or 'Non-VA to VA' refinance can be a huge benefit to homeowners wanting to reduce their monthly housing expense and at the same time build equity in their home much more quickly.
Advantages of a Conventional to VA Refinance
- Cancel costly mortgage insurance (PMI) or (MIP)
- Refinance out of any loan with unfavorable terms
- Equity in the home is not required by the lender
- Pay off almost any non-VA loan
- Potentially lower rate and monthly payment
Types of Loans That May Have Unfavorable Terms
As an example, a veteran can refinance from a FHA loan into a VA loan. He or she now has a new VA loan with no monthly mortgage insurance and a potentially lower rate. Other types of loans that can be refinanced into a VA loan include...
- Any loan that requires mortgage insurance
- Second mortgages/liens
- Interest-only loans
- Loans with Alt-A interest rates
- First & second mortgage "piggyback" loans
Potential Monthly Savings In Refinancing to a VA Loan
The following chart is based on a $250,000 mortgage, 4.50% interest rate, 30-year term, a 0.85% MIP rate for the FHA loan and a 0.96% PMI rate for a 680 credit score on a conventional loan. This shows, for comparison purposes, the difference in monthly payment with and without monthly mortgage insurance (PMI/MIP) included in the monthly payment.
|Loan Type||Principal & Interest||(PMI/MIP)||Monthly Payment|
As you can see from the chart above, the clear winner is the VA loan and the savings realized from refinancing a 'Non-VA' loan to a VA loan can be significant!
It's important to note that, due to strict home equity laws in the State of Texas, borrowers cannot take cash out of their home equity with a VA loan. The good news is however, homeowners refinancing from a conventional loan or other type of loan into a VA loan are not required to take any cash out and they can still realize the benefits of a 'Non-VA to VA' refinance.
Ready to get started? Call and speak to one of our VA loan specialists today. The toll-free number is 866-704-2826. You can also complete our safe, secure online request form and a member of our staff will contact you right away to discuss your options. We welcome the opportunity to assist you.
Get Started Today With Your VA Loan Request!
To find out more about a Conventional to VA Refinance, or to speak with a loan professional about the prequalification process, please call our toll-free number at 866-704-2826 or click on the button below and complete our quick-and-easy online form and a member of our staff will contact you right away to discuss your options.
We welcome the opportunity to assist you.