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), (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
VA $1266.71 $0.00 $1266.71
FHA $1266.71 $177.08 $1443.79
Conventional $1266.71 $200.00 $1466.71

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.

To find out more about a Conventional to VA Refinance, or to speak with a loan professional about the prequalification process, please call us 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.