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Updated by Daniel Anderson on Jan 14, 2016
Headline for An Introduction to VA Refinance Options
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An Introduction to VA Refinance Options

The Department of Veteran Affairs of the US Federal Government offers a range of refinance options to certain eligible veterans and active duty members of the US Armed Forces. Fortunately, the Department of VA seems to realize the diverse reasons for which one might require a refinance loan and hence it allows a number of VA refinance options. Here we would look at the various refinance options that are available to you.

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VA Streamline Refinance Loan

VA Streamline Refinance Loan

This is perhaps the most popular types of VA Refinance. With VA Streamline Refinance, which is also known as the Interest Rate Reduction Refinance Loan or #IRRRL, the borrower can refinance their existing VA loan with another VA loan, which has a lower interest rate. Not only that you can also increase or decrease the loan period. Qualifying for a VA IRRRL is quite easy, provided you have an existing VA home loan. There is no credit requirement, which mean that even if you have a bad credit you would still be eligible for a VA streamline refinance loan.

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VA Home Improvement Loan

VA Home Improvement Loan

This is another popular refinance option from the Department of VA. This really proves to be quite useful when you need some extra cash to do some important home improvements. You can use the current equity of your home to get such a loan. You can borrow as much as 90% of the value of your home.

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VA Cash Out Refinance Loan

VA Cash Out Refinance Loan

Apart from the VA IRRRL, the VA cash out refinance is the most well-known refinance option. If you have some equity remaining on your house, then you might qualify for the VA Cash Out Loan. The money could be used for any purpose-to pay off debts, pay for your child’s college or for other purposes. You would have to go through an appraisal and you need to qualify for a loan as well. You also have to pay a funding fee of 3% of the loan amount but that could be rolled into the loan.

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VA Debt Reconsolidation Loan

If you want to lower your monthly payments from second mortgages, credit cards or auto loans, then this type of loan would be the perfect fit for you. You just need some type of equity on your home and you might be eligible for such a loan.

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VA Refinance Relief Loan

This type of loan would help those who are ‘upside down’ with little or no equity left in the property. If you have taken a conventional loan or have a non-VA, ‘sub-prime’ mortgage, then you must seriously consider getting such a loan.

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VA Energy Efficiency Mortgage

VA Energy Efficiency Mortgage

If you are looking to purchase an energy efficient home, or you are looking to make energy efficient improvements, then you would get an additional $6000 added to your loan. You have to get your house rated for its energy efficiency before the loan is approved.

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Consult with the expert

When you are looking for a va loan refinancing, it is better to get in touch with a VA loan specialist. They would give you effective advice that would help you choose the best refinancing option for you. The top VA approved lenders have a team of specialists who help you a lot in this regard. So get in touch with the leading VA loan lenders and get the benefits of a VA refinance loan.