can I refinance my current mortgage to a VA loan? or are they for first time buyers only?

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  1. Reply
    January 21, 2011 at 3:39 pm

    VA loans are available for active duty military or honorably discharged veterans. They do not have to be first time home buyers, and actually the loan program can be used multiple times.
    To reuse the VA program the original property must be sold and the eligibility certificate applied for again.

  2. Reply
    January 21, 2011 at 3:49 pm

    Yes you can if you are a veteran and have the required eligibility. It is something few veterans would want to do because unless you are a disabled vet, the VA Funding Fee for a new refinance can be as high as 3.30% of the loan amount – plus all other closing costs. (Compare to the VA Streamline Refinance that has a low .50% Funding Fee. A VA Streamline permits the refinancing of a current VA loan to a new VA loan with easier qualifying and without cash back).

    The only incentive to do this is because the borrower has a high rate and cannot qualify to refinance under conventional guidelines and get an attractive rate.

    Though the VA loan is not for 1st time home buyers, the program makes it less attractive if the borrower is not a 1st time home buyer. That’s because the program wants to be able to get as many 1st time buyers as possible into a new home. The more 2nd loans that are done, the less funds available for the new buyer.

    FHA might be an option also. Have someone look at all your options.

    Good luck.

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